2020 1040X Filed, How to eFile 2021 1040X That is Bringing Forward Errors from 2020

[Jamiers99]

I submitted a 1040X paper copy for tax year 2020. I have received a letter from the IRS stating that it was adjusted.

I am going into TurboTax for 2021 and attempting to efile a 1040 Amended. The error that I am correcting comes from an erroneous additional tax on an overpayment into an HSA (Form 5329).  The erroneous error was efiled with Turbo Tax in 2020. Now, I am attempting to correct it for 2021, but no where does it ask me to fix that 5329 payment.  The only thing that I see is a 160 character comment box on what I need to fix.  I am assuming it is just carrying forward the bad 2020 TurboTax efiled info.

How can I eFile 2021 and correct the Form 5329 overpayment now? It keeps carrying forward from year to year and I need to fix 2021-2023.

[fanfare]

If your 2020  tax retunr included 5329 with a penalty that was not supposed to be there.

You have to amend your 2020 tax return to remove the penalty.

Your "Total Tax" Line 11 will be reduced by the amount of penalty.

for best results , write an explanation in 1040-X Part III that is clearly understandable by the human reviewing your amendment.  If more space is needed, attach another explanation sheet.

Include all changed or new forms or schedules.

May 17th is the last day to file an amended 2020 return for a refund.

If your penalty was erroneously applied again in 2021  you have to amend your 2021 tax return to remove the penalty.

Etc. Etc.

@Jamiers99 

[fanfare]

If you are satisfied with the IRS adjustment of 2020 1040-X there is nothing more to do.

amend your 2021 return based on the most recent "as adjusted" 2020 tax return.

@Jamiers99 

[Jamiers99]

I'm satisfied with the 2020 1040X Amendment, but will the amendment get automatically brought into TurboTax so when I efile 2021, it isn't bringing forward the overpayment error?  Or do I have to keep filing 1040X paper copies through tax year 2023?

[fanfare]

 Turbotax doesn't bring in revised/changed/amended prior returns unless you start a new return.

That's not the amendment process.

According to most threads on this forum , you will not be able to e-File a 2021 1040-X, nor a 2022 1040-X.

why do you think you can e-File?

@Jamiers99