1040X

I thought I did so well preparing my tax return early this year. I calculated a refund of $532, so I was kicking myself for not doing it earlier. I already electronically filed and was eagerly awaiting my refund.

But sometimes procrastination pays off. I received an ominous envelope from my company that said "important year end tax information" on the outside. I opened it up and found the important information was an amended W-2 form. Yes, my company miscalculated my income.

How did this happen? The error was in the sale of ESPP (employee stock purchase plan) shares. My company lets employees buy a quota of stock at a 15% discount - a common benefit. However, my new employer bought my previous employer last year, and the merger completed after two ESPP sales from the previous company. Thus I think the new stock people simply overlooked us.

Argh. So for the first time I have to file a 1040X. I filled out the form and this time I owe $458. Not too bad - clearly not as good as receiving $532 but at least the amount involved isn't too large.

So I'll send this off soon, and hope my previous refund doesn't hit before I file my paperwork. Because then I'll wind up owing that refund as well, which is more hassle than I want to deal with.