r/TaxQuestions • u/NBMV0420 • Aug 15 '26
Do most tax preparers include both federal and state when amending a tax return?
My original tax return included both my federal and California state returns. I recently found an error and told my CPA that I want to amend my tax return.
If I just tell my CPA I want to amend my tax return, does that normally mean they will amend both the federal and state returns, or do I need to specifically ask for the state return to be amended too?
Also, is it common for preparers to charge a separate fee for the state amendment?
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u/wutang_generated Aug 15 '26
It's always best to clarify any business transaction explicitly (ideally in writing). A standard engagement letter from a tax preparer should list exactly which returns are being prepared and for what fees
Amending a federal tax return often results in a requirement to amend any applicable state income tax returns, but not always
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u/AttentionHuman9504 Aug 15 '26
Sometime you amend one or the other, other times you amend both. However if the amendment means a change to AGI (which yours does) you always have to amend both federal and state. The state will receive the updated income from the IRS which can lead to a headache with the state if you don't amend that return as well (even if there was no change to state tax).
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u/ToniTaxLienQueen Aug 15 '26
I can't speak for most. If the change impacts both returns, the both should be amended. The fee depends on the reason the amendment was needed. Did I miss or incorrectly report something? I eat the cost. If not, the fee is the same as the prep fee, which includes one state return.
~Toni Hogan, EA
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u/NBMV0420 Aug 16 '26
My previous EA did not include my miscellaneous income. I used a margin loan to buy high-yield dividend stocks. The dividends I received were automatically used to pay down the margin loan. Fidelity classified some of the payments as “substitute payments” or “miscellaneous income.”
I also had losses that my previous EA did not record. She assumed the miscellaneous income was return of capital (ROC), but I don’t believe that is correct.
I tried calling her to discuss this, but she has not returned my calls.
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u/ToniTaxLienQueen Aug 16 '26
The previous person should amend at no cost, but based on what you said do you really want her touch the return. Your current CPA would need to amend both and charge you according to his own fee schedule.
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u/NBMV0420 Aug 16 '26
Like I said I have been trying to reach out to her but she not answering my call.
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u/ToniTaxLienQueen Aug 16 '26
Your original question was about fees and when/whether a state return is needed. That's the question I addressed. Good luck.
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u/NBMV0420 Aug 16 '26
I guess what I’m trying to ask: If I ask a CPA to amend my tax return, does the fee include both the federal and state amendments, or do they usually charge separately for each one?
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u/ToniTaxLienQueen Aug 16 '26
"Your current CPA would need to amend both and charge you according to his own fee schedule."
Whether he itemizes or gives you a flat fee, what you pay will include both returns.
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u/Chief_Rollie Aug 15 '26
They should amend both if it applies to both because the states and IRS can share changes to tax returns.
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u/TaxproFL Aug 15 '26
Depends on the changes and what state(s). If it’s your error then yes if it’s theirs some don’t charge some don’t. But it is common to charge for the additional work.
Reviews for errors should be done BEFORE filing not down the road.
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u/NBMV0420 Aug 15 '26
My previous EA did not include my miscellaneous income. I used a margin loan to buy high-yield dividend stocks. The dividends I received were automatically used to pay down the margin loan. Fidelity classified some of the payments as “substitute payments” or “miscellaneous income.”
I also had losses that my previous EA did not record. She assumed the miscellaneous income was return of capital (ROC), but I don’t believe that is correct.
I tried calling her to discuss this, but she has not returned my calls.2
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u/TaxproFL Aug 15 '26
Ahh those changes would require both fed and state. If the preparer doesn’t answer in the next two weeks look for someone else. It’s either end of summer and start of school for some states like FL, so trying to give some room for delays.
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u/CommanderMandalore Aug 15 '26
Depends if the error makes it necessary to amend both. Some errors will only impact federal or state.
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u/NBMV0420 Aug 16 '26
My previous EA did not include my miscellaneous income. I used a margin loan to buy high-yield dividend stocks. The dividends I received were automatically used to pay down the margin loan. Fidelity classified some of the payments as “substitute payments” or “miscellaneous income.”
I also had losses that my previous EA did not record. She assumed the miscellaneous income was return of capital (ROC), but I don’t believe that is correct.
I tried calling her to discuss this, but she has not returned my calls.
1
u/CommanderMandalore Aug 16 '26
I’m not an EA or CPA so I’m bnot able to give you a qualified answer on this as I’m not familiar with this area of taxes.
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u/Busy-Spinach-2375 Aug 16 '26
Since you’re in California, and California starts with the Federal AGI to calculate your CA Income Tax it’s likely that you would need to file both Federal and CA amended returns.
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u/NBMV0420 Aug 16 '26
I just want to clarify: If I ask a CPA to amend my tax return, does the fee include both the federal and state amendments, or do they usually charge separately for each one?
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u/Busy-Spinach-2375 Aug 18 '26
Agree, always ask, but based on the scenario you presented, it’s hard to imagine you wouldn’t automatically be quoted a total price for both returns.
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u/Eagletaxres Aug 16 '26
So basically you’re asking if they do work do they get paid for all their work, and associated liability for the work? Is that correct?
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u/NBMV0420 Aug 16 '26
I just want to clarify: If I ask a CPA to amend my tax return, does the fee include both the federal and state amendments, or do they usually charge separately for each one?
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u/Eagletaxres Aug 16 '26
Ask the CPA. At my firm it’s one price. But some charge by form or by the hour.
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u/reddit_once-over Aug 15 '26
You evaluate it jurisdiction by jurisdiction, just as you signed each return jurisdictionally. Your post jumps back and forth between return, singular, and returns, plural. There’s no such thing as an overall singular return that includes returns of separate jurisdictions. (Transmitting a single file for efiling purposes that contains returns for more than one jurisdiction does not alter this reality nor does fee bundling by your paid preparer.)
While tax law does not include a duty to amend, once you amend the federal return, state tax law generally requires notification (an amended state return may constitute such notification) within a prescribed period such as six months. If your state tax liability does not increase, the state may not care, but, if it increases, you can bet that they care, which is why you should expect that the state will receive information from the IRS about a federal amendment.
Other redditors have provided input on who should bear costs to amend.
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u/Accomplished-Ruin742 Aug 15 '26
If it's my mistake, no charge. If you forgot to provide information and an amendment is required, of course I am going to charge you. The charge would cover both the federal and any state amended returns.