Okay, so I used Turbo Tax to file my 2020 tax return. When filing, I filed Married Filing Separately.. my spouse did the same. I am now trying to amend the tax return to Married Filing Jointly. When I'm using the turbotax online amending software, it just does not seem to calculate anything correctly. First off, it shows as if the original tax return was filed "Married Filing Jointly", but that is not the case. I contacted TurboTax and they showed me how to fix that part. Okay great.. Now I'm having more issues.
First off, on line 18 of the 1040x, it shows my overpayment of $330 (which was MY original refund). My spouse had a refund of around $1,400. That is not reflected anywhere on the 1040x. What do I do about this? Do I leave it at the $330 and just hope the IRS adjusts the amount correctly? Or am I going to get over-refunded?
Shouldn't line 18 show my previous refund PLUS my spouses?
One other issue. I received unemployment in 2020. I filed my taxes prior to the unemployment tax break. I ended up getting around $1,200 refunded from he IRS just a few months ago (after my normal tax refund). It looks as if the online software is adjusting to add that $1,200 into my new refund which, once again, would result in me getting a larger refund than what is expected.
What should I do to fix this? Do I add my spouses overpayment into line 18? Is there a place to add that $1,200 unemployment refund?
Do I add my spouses overpayment into line 18?
Yes.
Is there a place to add that $1,200 unemployment refund?
Yes. it is line 18.
Unfortunately TurboTax Online does not give you the ability to change line 18.
Contact TurboTax support (again) and they should give you the CD/download version, since you already paid TurboTax.
Okay that helps a lot. So I can just add the spouses overpayment, my overpayment, and the $1,200 refund I got from unemployment into the line 18? That should set all of that correctly. Now that leaves one final question:
What do I do about the education credits and everything that I should receive? Since I originally did not qualify for the education credits since I was filing separately, will I need to prepare those schedules to show proof that I now qualify for the education credits? or do they even need any forms other than the 1040x?
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 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.
Attachment Sequence Number is on all the forms and Schedules that come after 1040.
Mail to the address shown for your location in the Instructions for Form 1040-X.
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Since you are adding a spouse their tax documents would be considered new.
If yo leave out supporting forms, IRS will send your amendment back to you.
What do I do about the education credits and everything that I should receive? Since I originally did not qualify for the education credits since I was filing separately, will I need to prepare those schedules to show proof that I now qualify for the education credits? or do they even need any forms other than the 1040x?
Yes exactly ... part of the amendment process is the addition of new items. All new forms, schedules and attachments need to be attached to the mailed in 1040X ... you cannot efile a 1040X with a filing status change.
Look at column B of the 1040X ... you must attach anything needed to support the changed in that column. Think this way ... you are telling the IRS the column A was the original return and the column C is how the original return should have been so explain the differences reflected in column B clearly but don't write a dissertation.
Select your tax year for amending instructions:
Even during “normal” times it takes about four months for the IRS to process an amended return. During the pandemic and due to the severe backlog at the IRS it is taking much longer—six months or more for many amended returns. Do not expect quick results from amending. When the IRS issues a refund for an amended return it will be by check. They do not make direct deposits for refunds for amended returns. You can watch for information here:
https://www.irs.gov/Filing/Individuals/Amended-Returns-(Form-1040-X)/Wheres-My-Amended-Return-1