Do I delete casualty loss or add in the additional reimbursement I will receive from mediation? I no longer have a loss due to additional payment. This will amend 2017.

[KatrinaB · Accepted solution]

If you have no loss after your reimbursement, then you should delete your casualty loss. Please click the answer link (provided by Turbotax Kadian) below to see instructions on how to delete your casualty loss.

https://ttlc.intuit.com/questions/3671618-how-do-i-remove-the-form-4684-casualty-and-theft-worksheet

If you have already filed your 2017 tax return then you will need to wait until it is completely processed and you have received your refund to file an amended tax return. If you file an amended tax return before the filing due date with a payment for the difference in refund amount, you should not owe any penalties. Please follow the directions below to prepare an amended tax return.

https://ttlc.intuit.com/replies/3288565

[Edited 03.18.2018 I 9:45 PM] 

[moisesiii]

So how do I calculate what I need to pay back to the IRS since I no longer have a casualty loss.  Do i just delete the casualty loss and subtract what I was refunded on my amended return from what i got on my original return and return the difference as a check to the IRS with my amended return by mail?  Would there be any penalties if I issue the amended return and the payment to the IRS before the April 2017 deadline? Thank you.

[KatrinaB]

I've edited the answer above.

[moisesiii]

Thank you! What if they audit my original 2017 return I filed.  Do I let them know I will be submitting an amended return to remove the loss  since I am expeting a reimbursement from mediation settlement?

[KatrinaB]

Yes. That would be great.