Amended returns

[karzak]

How do you do an amended return for someone who filed before Mid March 2020?  Pro Series automatically updated the information.  However, an amended return needs to be filed for additional credits that are now available to them.  The changes will not calculate correctly because of the updated information.

for example:  taxpayer had unemployed that they were taxed on.  This increased their AGI and they had to pay back some the the ATC.  With the changes, they will not owe the ATC.  However, the updates to my original tax return already removed this information and shows a new refund amount.  How do I do an amended return?

[Just-Lisa-Now-]

I havent fiddled around with any of these yet, but Im guessing you'll probably have to go in and do a reversing entry on the Other Income line to make the return match your original, then activate the 1040X, then go back and remove your reversing entry.

[karzak]

Thanks.  I have been trying to do that, but I can't seem to get the info to work.  I will keep trying.  Maybe I will come up with something to share.

[BobKamman]

What do you mean by "ATC" ?

[Just-Lisa-Now-]

guessing APTC

[BobKamman]

Well then, I'll guess ACTC.

And what IRS says is:

Taxpayers do not need to file an amended return if they:

• already filed a tax return and did not claim the unemployment exclusion; the IRS will determine the correct taxable amount of unemployment compensation and tax;
• have an adjustment, because of the exclusion, that will result in an increase in any non-refundable or refundable credits reported on the original return; 

https://www.irs.gov/newsroom/irs-readies-nearly-4-million-refunds-for-unemployment-compensation-over... 

[karzak]

Sorry.  Premium Tax Credit.

[karzak]

Taxpayer received a refund, minus the $1200 stimulus.  IRS says she did receive it.  However, they did not adjust her return for her unemployment or the premium tax credit.  (Return was filed 03/08/21).  Do you wait to see if they adjust it or do we now need to do an amended return.

[BobKamman]

Wait

[Just-Lisa-Now-]

They havent adjusted for the UI or APTC because the return has been stuck in the math errors department for the RRC mismatch

[BobKamman]

Sounds like a joint return -- have any of those been adjusted yet?  

[dkh]

I have client - MFJ with unemployment  - that has received UE adjustment refund two weeks ago.

[Just-Lisa-Now-]

I have one thats been buggin me for months about it, finally got the refund pending in their account for tomorrow!

[BobKamman]

IRS Newswire today, Issue IR-2021-159:

WASHINGTON – The Internal Revenue Service reported today that another 1.5 million taxpayers will receive refunds averaging more than $1,600 as it continues to adjust unemployment compensation from previously filed income tax returns....
The IRS started with the simplest tax returns and is now reviewing more complex returns. The average refund amount is higher for this round because the IRS included an adjustment to the Advance Premium Tax Credit (APTC).

[karzak]

Thank you.  This is helpful, but I am still a little confused.  The taxpayer already got an adjusted return because of the stimulus.  Does this mean now they will go back to the same return and correct the unemployment and PTC?

[Just-Lisa-Now-]

Good question. Im using the wait and see method....when people come in for their 2021 filing, we'll look at what IRS did automatically and amend if more adjustments are needed, hopefully by 2022 they'll have whatever they're going to do completed on their end.

[BobKamman]

The manual review for recovery rebate credit is unrelated to the manual review for unemployment income adjustment.