Amend an amended return??

Forum|Forum|4 years ago
March 4, 2022
1 reply
19 views

Hi there,

I filed an amended return in 2020 and paid (round number) and additional $1000 in federal taxes. Months later (today), I found an error where I didn't adjust my cost basis on ESPP shares I sold with resulted in an overpayment of $1000. If I correct my error in my 2020 amended turbo tax file it just brings my balance to zero... it does not reflect that the IRS owes me the 1k back. How do I address?

Thanks!!

Best answer by FangxiaL

That's EXACTLY what it's doing. How do I "indicate I paid the $1k tax due" already? Thanks!!!!

If you cannot enter the $1k already paid using TurboTax Online version, you can ask for a free download to prepare your 1040-X for tax year 2020.

You will be able to enter the amount paid in the Forms mode:

@bobbtu

DianeW777

Level 15

I would start by putting the return back to the first amended version. Then follow the instructions carefully so that TurboTax knows the original amendment and the changed figures.

How do I amend my 2020 return?

Next take your original amended 1040 and compare it line-by-line to the new amended 1040 return to verify the change in the cost basis of your ESPP sale. This will first be seen on Schedule D and the tax on the gain difference is likely 15% if it was held long term.

The tax on the additional cost basis should be your refund amount using the capital gains tax rate, again assuming long term holding period. Otherwise it would be your regular tax rate times the additional cost basis originally omitted.

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bobbtuAuthor

Level 2

Thank you for your quick reply... I should restate my question. I'm positive in my corrected math...and my IRS account shows a credit of the ~1k. How do I get that money?

JohnB5677

Level 15

In the process of preparing your amended return did you indicate that you paid the $1K tax due with the original return. If you did not do that it would just zero out.

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