I filed my 2020 tax returns (Federal and State) but on February 27th I received a tax reporting statement showing 1099 Div, Int, and B do I need to amend my returns?

Forum|Forum|5 years ago
March 1, 2021
2 replies
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I took money from a post-tax account however, when calculating the cost basis, they show $3600 in Realized Cains.

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Best answer by MaryM428

Amend will not be available until the IRS releases Form 1040X. We expect the form to be available in TurboTax in mid to late March. You do not amend until your original return has been processed. When you start your amend, TurboTax will show your refund amount as zero. Then that amount may change as you amend your entries.

When amend is ready, go into TurboTax and follow the instructions for amend. You will add your forms in the federal section, then walk through all of the amend questions to be sure the information carries to the state. You will be amending both the federal and the state returns when you add the forms.

Since your money was taken from a post-tax amount, the taxes charged on it should only be for the gains from the account. There should be no tax penalty like when you take money from a traditional IRA and put it into a ROTH IRA. In a case like that you are paying back the taxes that were deferred on the IRA. You should only be paying taxes on the money that you gained. Be sure that the basis of the amount is entered correctly so taxes are computed accurately.

You have 3 years from the date you filed your return or 2 years after you paid the tax due (whichever is later) to file an amendment.

MaryM428Answer

Level 11

Amend will not be available until the IRS releases Form 1040X. We expect the form to be available in TurboTax in mid to late March. You do not amend until your original return has been processed. When you start your amend, TurboTax will show your refund amount as zero. Then that amount may change as you amend your entries.

When amend is ready, go into TurboTax and follow the instructions for amend. You will add your forms in the federal section, then walk through all of the amend questions to be sure the information carries to the state. You will be amending both the federal and the state returns when you add the forms.

Since your money was taken from a post-tax amount, the taxes charged on it should only be for the gains from the account. There should be no tax penalty like when you take money from a traditional IRA and put it into a ROTH IRA. In a case like that you are paying back the taxes that were deferred on the IRA. You should only be paying taxes on the money that you gained. Be sure that the basis of the amount is entered correctly so taxes are computed accurately.

You have 3 years from the date you filed your return or 2 years after you paid the tax due (whichever is later) to file an amendment.