Amend after IRS corrected return and I paid back some of the refund

[Ollie965]

For my 2020 return I accidentally claimed the American Opportunity Credit for a 5th year. The IRS noticed the error and I had to pay back the credit, which I did earlier this year. I know I can still claim the Lifetime Learning Credit for 2020 instead. How do I amend this return? Can I use Turbotax to do this?

[macuser_22]

Yes,

Do not rush to amend - no hurry. You have 3 years to amend and amended returns are taking 4-6 months or longer to be processed so waiting a few weeks will make little difference and amending too soon might just compound the problem. (If you amend today you probably will not see the results until August or September).


To amend your 2021 tax return:

-- First, *wait* to see if your return has been accepted or rejected by the IRS or state. DO NOT do anything until you receive the accept or reject e-mail.

-- If rejected, you can correct and re-send your return.

-- If accepted you should *wait* until your return has been processed and you receive your refund or conformation that any tax due has been paid. (If you file an amended return while you first return is being processed it can cause extended delays for both returns if two returns are in the system at the same time). In addition, if the IRS makes any change on your original return, you might end up having to amend the amendment – a sticky process that can take a year or more).

-- Then you can start the amend process.

It is suggested that it be mailed certified with return receipt (or other tracking service) to verify that the IRS receives it. That is the only proof of mailing that the IRS will accept.

-- Amended returns can be mailed or e-filed - allow 8-12 weeks - can take up to 16 weeks (4 months) for processing.


See this TurboTax FAQ for help with amending:

https://ttlc.intuit.com/questions/1894381-how-to-amend-change-or-correct-a-return-you-already-filed

You can check the status of your amended return here but allow 3 weeks after filing for it to show up:
https://www.irs.gov/filing/wheres-my-amended-return

[Ollie965]

Not as simple as that. Turbotax is instructing me to send the IRS a check for the difference between AOTC and LLTC, when in fact I should expect the full LLTC, since I paid the IRS back the AOTC. How do I "tell" that Turbotax?

[Mike9241]

yes. you can use Turbotax to amend. before amending remove the AOC. go to the education section and delete student info which should remove the AOC that the IRS disallowed. then you amend by adding the LLC. it's the same form so go to the education section. answer that you got 4 years of AOC.   

since your asking about 2020 that the IRS has fully processed, I would amend it immediately.  be patient because it may take a year to get the refund.  you can not e-file if you use Turbotax so when you mail the amended return use a method where you can track it. 

[Ollie965]

Thanks but I'm afraid it's too late for this. Of course I had gone straight to Amend return first, which resulted in a return amount of 0$ and the difference owed after I manually removed the AOC and replaced with LLC. I didn't save a backup file of the original return before I started the amendment.

After having been a loyal user for years I am really over TT. This stuff should be easier. And I blame TT too for the mistake I made of claiming AOC for a fifth year. I miscalculated, but TT could have a counter built in and flagged this claim as ineligible. All my prior year returns are in the same folder and could be easily analyzed by TT.  

[macuser_22]

---

@Ollie965 wrote:

Thanks but I'm afraid it's too late for this.

TT could have a counter built in and flagged this claim as ineligible. All my prior year returns are in the same folder and could be easily analyzed by TT.  

---

Why is it too late?  You have 3 years to amend and claim the credit.     TurboTax DOES keep track of the number of years that the AOC was claimed if you transfer the prior years .tax file (for desktop that I assume you are using since you referenced backup files) - online is automatically transferred if you use the same account and a paid version.   TurboTax also asks how many years you have received the AOC if it does not transfer in the interview.

[Ollie965]

Not too late to amend. Too late to follow your instructions. Well I guess I'll have to figure out how to amend without TT. Yes desktop version. For every new return I start with the prior year return. Apparently that isn't enough to make TT transfer the relevant information it would need to keep track of prior AOC claims. Instead it asks me everytime. Are you sure it keeps track or are you assuming? anyway thanks for trying to help.

[Critter-3]

Ok ... if you started the amendment before you made the IRS corrections :

Step 1 ... remove the amendment ... since you must be using the downloaded version switch to the FORMS mode and delete the 1040X and the education credit form 8863 while you are there.

Step 2 ... review the 1040 form ... does the bottom line match what the IRS changed ? If so move on ... if not make additional corrections if needed.

Step 3 ... start the amendment process again and then add the education credit back using the LLC instead of the AOC

How do I cancel or undo an amended return in the TurboTax CD/Download software?

If you started amending your federal return by accident and would like to cancel the amendment, follow this process to correctly "unamend" your federal return:

1. Open your return.
2. Switch to Forms Mode (Windows instructions | Mac instructions).
3. In the left pane, select Form 1040X.
   • Windows: After the form is generated in the right pane, click the Delete Form button at the bottom of the window.
   • Mac: From the Forms menu, select Remove Form 1040X.
4. Follow the on-screen instructions to remove the 1040X from your return

1. Important: Go back through the TurboTax interview and undo any changes you made after you selected the option to amend your  return, as merely deleting the 1040X will not undo those manual entries for you.

How do I amend my 2020 return?

https://ttlc.intuit.com/community/amending/help/how-do-i-amend-my-return/00/27439

BEFORE filing the amended return ....

Look at the form 1040X …

Column A should have the figures from the original return (OR AS CHANGED BY THE IRS), Column C the corrected figures and Column B the differences between the other 2 which needs an explanation on page 2 of the form 1040X.

If you completed it correctly you will see an entry on either line 16 OR 18:

On line 16 should be the amount you paid with your original return. If you paid nothing already then this line should be zero.

On line 18 should be the amount of your original refund you received.  If you have not received your refund yet then you need to wait for it.  If the refund changes from what you expected then this line must reflect that change.

Then you will see your extra refund on line 22 OR  the new balance due you need to pay on line 20.