Amended 2018 VA State Amount Owed Subtracts Previous Posted Return

[vareads]

Amending 2018 Fed and VA returns with 1099-B gains.  The Fed 1040X show the correct amount owed in line 20 as the difference of total owed on 1040 line 20 minus amount paid on original April 2019 file.

The amended state form VA  760CG shows amount owed as the difference of payment due and the amount already returned and deposited in my bank (2018 return of $419 subtracted from $495 amended due reported as 76 amount due on page 1 of 2). 

Why would the Fed 1040X account for correct amended amount due and not the state?  Further, can the state amended return be corrected in TurboTax to account for the 2018 $419  return already posted? Or do I need to manually print and fill the VA form to show the correct $495 amount due? 

Thanks for any direction you can provide.

[KrisD15]

The 1040X does the computation of the correct amount due (or to be refunded) plus or minus the tax paid (or refund received) on the original return.  The amended VA return does not do this. 

According to the State Of Virginia:

"Complete a new return using the corrected figures, as if it were the original return. Do not make any adjustments to the amended return to show that you received a refund or paid a balance due as the result of the original return. Use the worksheet for amended returns below to determine if you are due a refund or if any additional tax due should be paid with your amended return. If your amended return results in additional tax due, interest must be paid on the tax you owe from the due date of your original return to the date that the amended return is filed or postmarked."

Please click on the link below and go to page 4 of the instructions. Here you will find the worksheet to figure the amount you must send to Virginia.  You should also check the instruction sheet that TurboTax generated with the amended returns. 

Please click here and go to the bottom of page 4 for the worksheet

If you pay additional state tax, that tax will be claimed in the tax year you pay it, so it will most likely be claimed as additional tax paid on your 2020 tax year return which you will do NEXT year. This year you are doing your 2019 tax return. If you received a state refund in 2019, (and it sounds like you did) you might have to claim that as income (1099-G) even though you are paying it back (with interest) this year. 

If you are amending 2018 tax year, and you pay the additional tax you owe this year, you will manually enter that additional tax paid on your 2020 tax year return, not the 2019 tax year return that is due April of this year.