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JJ845
Level 2

How do I show taxes paid with my original return when filing an amended return?

I need to file an amended return for 2018 to correctly show depreciation on a rental property first placed in service that year.  (Property was inherited and I neglected to use step-up basis for depreciation.)  My taxes paid for 2018 included withholding, estimated taxes, and the amount I paid when requesting a filing extension.  When I filed my 2018 return in Oct 2019, TurboTax desktop said I still needed to pay about $300 more in taxes plus about $200 in penalties, which I did.  In Dec 2019, I got a letter from the IRS saying I owed an additional $8, which I promptly paid.  I preparing an amended return now with TurboTax, which says my depreciation correction will not give me a tax refund, which seems odd because that correction reduced rental income by almost $3000.  Looking through the various forms and supporting pages for the amended return, I don't see the $300 of taxes I paid in Oct 2019 reflected anywhere.  I can live with the $200 in penalties being non-refundable but I can't understand why a $3000 decrease in AGI produces no tax benefit.

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JJ845
Level 2

How do I show taxes paid with my original return when filing an amended return?

Update: After several hours on the phone with customer service and using screen share to go through the problem with them, they acknowledged that the 2018 product is defective and can't correctly prepare the1040-X for an amended return.  The solution is to go into Forms mode on the program and manually enter the correct values on form 1040-X.

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5 Replies
DavidD66
Expert Alumni

How do I show taxes paid with my original return when filing an amended return?

It's hard to say for sure without being able to see your return or having more information.  The most likely reason your amended return did not result in a refund after adding the depreciation would be due to the rental property showing a loss and your AGI being being above $150,000.  The tax code allows up to $25,000 to be deducted as a real estate loss, as long as your adjusted gross income (AGI) is $100,000 or less. The deduction phases out between $100,000 and $150,000.  If your income is greater than $150,000 there is no deduction.  Instead, the loss is carried forward and can be used to offset other passive income or realized when the property is sold.

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JJ845
Level 2

How do I show taxes paid with my original return when filing an amended return?

Thanks, my AGI on both the original and the amended are slightly over $150k but I don't think that explains it.  Here is some more info: My original Schedule E shows net income from the rental of about $3000 on lines 21, 24 & 26.  The amended Schedule E shows a loss on line 21 and 0 on lines 24 & 26.  These values are correctly reflected on Schedule 1 and on line 6 of the 1040.  My line 7 AGI is about $3000 less on the amended 1040 than on the original.  My line 15 total tax on the amended 1040 is about $500 less than on the original, which seems right given that my AGI dropped by about $3000.  But here are two things I don't understand:  First, my line 18 total payments on the amended 1040 is the same as on the original, although I paid $300+ in additional taxes and $200+ in penalties when I filed.  Second, the 1040-X produced by TurboTax to be filed with my amended return shows all zeros in Column B (no net change) although it should be showing decreased in AGI, TI, and tax liability due to the corrected depreciation and zero-out of rental income, plus an increase in payments made because of the $300+ I paid when I filed.  Column A is labeled as original amounts reported, but the the numbers TurboTax puts into that column all come from amended return rather than the original.  Given the values shown on the 1040-X, it seems there is a software problem within TurboTax.

JJ845
Level 2

How do I show taxes paid with my original return when filing an amended return?

One more piece of info:  I need to correct this depreciation mistake on both my 2018 and 2019 returns.  The 2019 version of TurboTax correctly fills out form 1040-X, so the problem is a bug within the 2018 TurboTax program.

JJ845
Level 2

How do I show taxes paid with my original return when filing an amended return?

Update: After several hours on the phone with customer service and using screen share to go through the problem with them, they acknowledged that the 2018 product is defective and can't correctly prepare the1040-X for an amended return.  The solution is to go into Forms mode on the program and manually enter the correct values on form 1040-X.

View solution in original post

VolvoGirl
Level 15

How do I show taxes paid with my original return when filing an amended return?

Sorry I didn't see your question before.  I would have told you at the beginning to enter it in Forms.  I think that is the only way.  

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