2021 tax year 1040-X showing incorrect original amount for standard deduction (line item 2A).

[JC009]

I need to amend already filed and accepted 2021 return because I forgot to include 401k direct rollover distribution from a former employer (Form 1099-R).   Since the entire distribution was directly rolled over to an IRA, there is no taxable income associated with it.  Therefore, no change to the tax liability.  When I start the 1040-x amendment, the "meter" does not revert back to $0.  The cause is that it's showing an incorrect amount of standard deduction for the original return (shows $80 less than what was reported in the original return).  Why is this happening and how do I fix it?  Thank you all.

[AmyC]

I don't believe you should file an amended return. Topic 308 states: file an amended return if there's a change in your filing status, income, deductions, credits, or tax liability.

The IRS received the 1099-R showing the rollover. There is no change to your tax liability and no need to file.

What is happening is you got lucky so you could determine you should not file an amended return and fix it by closing out of the program.

If you do need to file a return, please reply with confirmation that you took the standard deduction originally instead of itemizing. 

The meter could also have gotten a piece of data stuck -you can clear cache and cookies.

[JC009]

Thank you for your reply.  Yes, I took the standard deduction for single filing status in the original return.  However, after updating the return with the forgotten Form 1099-R rollover data and answering all the Turbotax s/w questions, the final 1040-X form shows $80 less than the standard deduction taken in Column A, hence resulting in additional refund.  I think there should be no additional refund or payment due, since I am only updating with additional non-taxable income.

[LindaS5247]

You do not have to file an amended return if it has no impact on your taxable income.  If it does not impact your refund due or amount wed you do not have to amend. 

So it is not necessary to file the 1040X for 2021.

Don't amend if:

• You haven’t e-filed or mailed your return yet. Just open your return, make any changes, and file when you're ready. If you already printed your return, follow these steps to make changes
• Your tax return hasn't been processed yet or your e-filed return is still pending. Wait until the return is accepted before amending
• Your e-filed return is rejected. Just make your changes and then resubmit or mail your return
• You received a government notice that doesn't specifically tell you to amend (for example, math error corrections or request for additional forms). Just follow the instructions in the notification
• You entered the wrong bank account to get your refund
• You received Forms 1095-B or 1095-C and the info matches what you reported on your return
• You want to make changes to the amount you claimed for Advanced Child Tax Credits. The IRS will internally adjust your refund
• You want to make changes to the amount you claimed for the Recovery Rebate Credit. The IRS will internally adjust your refund if you claimed the Recovery Rebate Credit but didn’t qualify or overestimated the amount you should have received. If a correction is needed, the IRS will calculate the correct amount of the 2020 or 2021 Recovery Rebate Credit, make the correction to the tax return, and continue processing it. There’s no need at this point to amend your return, unless you didn’t claim the Rebate Recovery Credit at all, and were entitled to claim it

Amend if you already mailed your return (or the government accepted your e-file) and:

• You need to report a tax form you forgot about or received after filing (most commonly a W-2, 1099, or 1095-A)
• You received a corrected tax form after filing (the corrected box is checked) and the new info changes your refund or tax due amount
• You forgot to report income or claim dependents, deductions, or credits
• You accidentally claimed dependents, deductions, or credits you're not eligible for
• You made an error that affects your bottom line, such as reporting income or deductions in 2022 that should've been claimed in a prior tax year (in that case, you'll need to amend all affected tax years)
• You need to change your filing status (for example, you want to change from Single to Head of Household)
• We instructed you to amend because of a program error (uncommon)

Click here for "Should I File an Amended Return? And click on Begin.

Click here for an article by TurboTax on "Do I need to Amend?"

Click here for information on if you need to amend your tax return.

Click here for detailed information on "How to File an Amended Return with the IRS."

Click here for a TurboTax video on "How to amend your tax return".

[JC009]

Thank you for your reply.  Although my bottom-line tax liability is not impacted, I thought an amendment was still required, since I interpreted my situation to be as highlighted below (1099-R in my case).

Amend if you already mailed your return (or the government accepted your e-file) and:

• You need to report a tax form you forgot about or received after filing (most commonly a W-2, 1099, or 1095-A)

Also, I used the IRS website's Interactive Tax Assist, and here's the result I got.

Do I need to report the transfer or rollover of an IRA or retirement plan on my tax return?

You need to include your rollover or transfer on your tax return.

Although the amount rolled over is a tax-free transaction, it is a reportable event.

Include the total amount distributed on the "Pensions and Annuities" line of your tax return. Write the word "Rollover" in the margin next to the "Taxable amount" line.

It's still a mystery why the 1040-X Form Column A (original amount) values are not exactly as was reported in the original return.  Should I just manually override the values?

[Cynthiad66]

The numbers may appear different to you but was probably filed that way. You might want to get an account transcript from the IRS to verify the numbers.    Get Transcript | Internal Revenue Service.

You can try to manually correct them to the information that you have.

As stated above, you do not need to file an amended return for the rollover.  It should have been reported on the original return for IRS' matching purposes but it was not.  The rollover does not effect the tax liability so you do not have to amend.  IRS receives all of that information from the institutions and have possibility already run the numbers.