Should I file a 1040x now or is there another way to fix this

I’ll keep it simple. I filed my 2024 taxes today for two W2 jobs. On my 1040, my tax preparer adjusted my gross income because I told him I maxed out my Roth IRA contributions in 2024. I specifically explained that the money for the IRA came from my bank account after my paychecks were deposited.

From what I’ve read online, that shouldn’t have adjusted my gross income, right?

Did you clearly say, “I made Roth IRA contributions from my bank account”?

If you said that explicitly, your preparer should fix this at no charge. But if you only said something vague like “I made $7,000 in IRA contributions,” then you might need to pay them to fix it.

@augustine
I said it very clearly multiple times. I even told him, “I get my paychecks deposited into my bank account, and then I transfer money into the Roth IRA.” I showed him my account on my banking app too.

A Roth IRA contribution doesn’t change your AGI.

Ira said:
A Roth IRA contribution doesn’t change your AGI.

Exactly! I explained over and over that the money I contribute comes from my bank account after taxes. This is what I get for paying an ‘expert,’ I guess.

E-filing hasn’t opened yet for 2024. Your return is probably still sitting in your tax preparer’s system. E-filing starts on January 27th this year.

Check with your preparer. If the return hasn’t been filed yet, they can fix it now. Fixing it before it gets submitted is way easier than filing an amendment later.

Your preparer shouldn’t have adjusted your income. You’ll need to file an amended return.

Kiran said:
Your preparer shouldn’t have adjusted your income. You’ll need to file an amended return.

That’s what I figured. I was expecting a $4k refund, but now I know it’ll be less when this gets corrected. How should I handle fixing this?

@Nova
You’ll need to file a 1040x to amend your return.

Kiran said:
@Nova
You’ll need to file a 1040x to amend your return.

Should I wait for the IRS to process the original return before filing the amendment, or can I file the 1040x now?

@Nova
It’s better to wait until the IRS processes the original return. Filing too soon could cause issues.

Kiran said:
@Nova
It’s better to wait until the IRS processes the original return. Filing too soon could cause issues.

Thank you! I’ll wait and try to handle the amendment myself. It doesn’t seem too hard from what I’ve read.

Where did your preparer enter your Roth IRA contribution on your 1040 and schedules? Was it on Form 8880 or somewhere else?

Ira said:
Where did your preparer enter your Roth IRA contribution on your 1040 and schedules? Was it on Form 8880 or somewhere else?

They put it on line 10 of the 1040, in the income section.

@Nova
That’s not correct if it’s a Roth IRA. They shouldn’t have done that.

Ira said:
@Nova
That’s not correct if it’s a Roth IRA. They shouldn’t have done that.

They also added it in Schedule 1 under IRA contributions. Should I file a 1040x now or wait until the IRS processes the 1040?

@Nova
It’s better to wait for the IRS to process the 1040 first. Otherwise, you risk complications if the IRS makes its own changes. If it’s still not processed by April 15, make sure to file the amendment by then.

@Ira
Got it, thanks! It’s frustrating how complicated this is. The IRS really doesn’t make it easy for regular people to fix mistakes.

Reach out to your preparer and confirm if the return has been filed yet. Since e-filing hasn’t opened, they should still be able to correct it. Also, always double-check your return and ask questions before signing off.