2024 1040X Incorrect Values Line 6

[steyaert]

I received a K-1 after filing my taxes (and after the 3/15 date that it should have been received) so I need to amend my return.  I also found that one of my imports skipped an account so there were modifications to a 1099.  I finally got through amending, so I have my new 1040, my filed 1040, and my 1040X (in the file with the new 1040).

Line 6 on 1040X contains the tax value on line 16 of the filed 1040 in column A.  Column C contains the value on line 18 of the new 1040, so the 1040X is having me pay AGAIN the value on line 17.

The IRS instructions at https://www.irs.gov/instructions/i1040x say to use the value from Schedule 2 line 3, and that is NOT the value given.

Interestingly, it also has QDCGTW as the method used to calculate the tax.  That value is line 17 of the new 1040.

Why is column A using line 16 while column C uses line 18?

Thanks for your assistance.

[LenaH]

Schedule 2, Line 3 consists of additional taxes such as the alternative minimum tax, repayment of previously claimed credits, excess advance premium tax credit repayments, and other additions to tax. The 1040X instructions highlight this with a caution icon, reminding taxpayers to include any of these additions to tax from Schedule 2, Line 3 on Line 6 of their 1040X. See screenshot below of Schedule 2.

Your 1040X, Line 6, Column C, would be the total amount of tax per the new 1040. The new tax amount is calculated against your total payments. The new amount you owe (or will be refunded) will be the difference due to the changes on the 1040X. 

Did your original 1040 have an amount on Line 17?

 

[steyaert]

Yes.  Both 1040 files had the same value on line 17.  My 1040X had line 16 in column A from the filed 1040, while column C has the value from line 18 on the newly generated 1040.  Column 17 has the same $950 that they decided was too big a discount on health insurance on both 1040 forms.

I paid tax on (1040X Line 6) A + 950.  With the new 1040, my line 16 went up $42, but since the 1040X is reporting line 18 as taxes due, it thinks I owe $992, instead of the $42 that I should owe (as far as I can tell).

Personally, I don't care if TurboTax uses line 16 or line 18 between the two 1040 forms, but it should be the SAME line!  Since it is listed on 1040X as "Tax", I'd think it would actually be using line 24, "Add lines 22 and 23. This is your total tax".

(Note my line 24 is $42 more on the new 1040 form than the filed but the 1040X says I owe $992.)

Terry

[fanfare]

See the IRS Instructions for Form 1040-X to see which tax(es) go on which of the "tax" lines on Form 1040-X.

@steyaert 

[steyaert]

The instructions definitely aren't clear, at least what I find online.  TurboTax lists "QDCGTW" as the tax value computed on the 1040X.  (Qualified Dividends and Capital Gain Tax Worksheet.)  The value in column A DOES match the value on that worksheet on the filed 1040.  The value in column C is NOT on that worksheet.  Hence I believe this is a TurboTax BUG but can't find anyplace beyond here to report it.

The value in column A (1040X, line 6) on the filed 1040 is on line 16 on the 1040, and lines 22-25 on the CQCGTW.

The value in column C of the 1040X is also on line 8(C) on the 1040X.  Line 18 and 22 on the new 1040 (19-21 are blank) and on a summary sheet.  While the 1040X says the capital gains tax worksheet was used, the value reported in column C is NOT on that worksheet in any way.

 I believe A is correct and column C is in error (although there's lots of different numbers that I would think would be valid, IF THE TWO COLUMNS USED THE SAME LINE.)  Line 24 (Described as "This is your total tax.") seems particularly valid for both columns.

Thanks for your assistance,

Terry

[fanfare]

" While the 1040X says the capital gains tax worksheet was used, the value reported in column C is NOT on that worksheet in any way."

"Figure the tax on your taxable income shown on line 5,
column C. Generally, you will use the method(s) you used to
figure the tax on your original return. However, you may need to
change to a different method if, for example, you amend your
return to include or change the amount of certain types of
income, such as capital gains or qualified dividends."

If Col C. amount is not from revised CQCGTW, then Turbotax switched to another method 

and the annotation for  that method should appear on the dotted line.

.

You may have to do that yourself.

@steyaert 

[steyaert]

I mentioned EVERYWHERE that value shows in the form.  Taxes WERE calculated from the capital gains worksheet.  It's just column A came from the capital gains worksheet as the total.  That value was also line 16 on the 1040 that was filed.  Labeled "Tax."

The newly reformed 1040 had the value of from the capital gains worksheet on line 16 of the new 1040 form.  $42 more than the filed version.  The value in line 17 was identical ($950) and column C on the 1040X came from line 18, so it was $992.  Since I already paid the $950 in the filed 1040, it should NOT be added to my tax bill when filing a 1040X.  (Or it should be in column A to say that it hadn't changed.)

If TurboTax had stuck with line 16, OR line 18 (or line 24) from the 1040 forms for all columns on line 6, my tax due would be $42.  Instead, since it used 16 for column A (or the capital gains worksheet value), and line 18 for column C, I supposedly owe line 17 again, which I already paid for.  (Line 17 is identical on all 1040 forms.)

Can I manually manipulate the 1040X?  Personally, I'd think this would be an easy bug to track down (being a retired computer programmer) if it gets to an actual programmer.  Using the same value on 1040X line 6 makes sense and TurboTax is OBVIOUSLY not doing that.  Then, I might even be able to e-file the 1040X...

I am tempted to start a blank 1040X from the IRS, put the proper values in because TurboTax obviously can't currently, although then I need to mail a ton of paperwork to the IRS.  I believe 1040X is now e-fileable, so that'd be easier, IF TurboTax can create the proper values.

Personally, I'd be shocked if I'm the only person that has run into this.  It's pretty obvious if there's a value on line 17 of both versions of the 1040 form.

Terry

[fanfare]

"mail a ton of paperwork to the IRS. "

@steyaert 

How to file:

Do not include your old 1040 nor your revised 1040 because the Form 1040-X reflects any changes there and becomes your new tax return.

Include any new/corrected tax document only if it shows federal tax withheld, and include in order only those Sequence Numbered tax forms and schedules that changed or were added due to your amendment.

Attach the schedule or form(s), if any, that you used to figure your revised tax (LIne 6). Don’t attach worksheets.

Mail to the address shown for your location in the most recent Instructions for Form 1040-X.