How to file amendment for 2021 return to reclaim Recovery rebate credit. IRS thought they issued a cheque to me bur on tracing it was found it was never encashed.

[Critter-3]

• How to amend (change or correct) a return you've already filed

[VolvoGirl]

Are you sure you need to amend?  Did the IRS tell you to amend?  If they traced it and found it wasn't cashed I would think they would just send it to you.  

[atulmishra]

Yes, I called them and spoke about the issue. Their point is that since I have already filed the return for 2021, they can not issue a new cheque till I submit an amendment. They could have done so had I not filed the return for 2021. As turbotax software does not know it, while preparing amendment it doesn't take into account this rejection fact and continue to show $0 federal refund. I don't know how to reset it.

[atulmishra]

Thanks for your reply. I tried all this. Software is not aware of the fact that IRS has rejected it earlier and now on tracing found it to be not cashed. Turbotax continue to maintain that original refund has been paid. During amendment process it continues to show $0 refund even though it says I should get a credit for my Recovery Rebate. How don't know how to reset it in turbotax.

[Critter-3]

Ok ... BEFORE you start the amendment process you must change it to match the IRS changes ... so open it up and remove the credit.  Then "fake print" to mail in the FILE tab and only then should you start the amendment process.  Or you can fill in the 1040X  manually. 

Look at the form 1040X …

Column A should have the figures from the original return (OR AS CHANGED BY THE IRS) , Column C the corrected figures and Column B the differences between the other 2 which needs an explanation on page 2 of the form 1040X.

If you completed it correctly you will see an entry on either line 16 OR 18:

On line 16 should be the amount you paid with your original return. If you paid nothing already then this line should be zero.

On line 18 should be the amount of your original refund you received.  If you have not received your refund yet then you need to wait for it.  If the refund changes from what you expected then this line must reflect that change.

Then you will see your extra refund on line 22 OR  the new balance due you need to pay on line 20.

[atulmishra]

Thanks again for your reply. How do I open 1040X in turbotax to do manual entries? Or you are asking me to fill out a hardcopy of it and mail it.

I would like to try the "fake mail" method. Could you explain it in a little detail (step-by-step)

Thanks in advance for all your help.

[Critter-3]

Fake mail ... open return using the ADD A STATE option on the landing screen.  Remove the credit and complete the FILE tab again to choose to mail in the return and save a PDF of this return and log out.  Then log back in and click on the amendment option. Follow the instructions to make the credit change again then you should be able to efile the amendment in the FILE tab.

[Hunterinflorida]

After filing taxes with Turbotax for 2021 I received a letter from IRS stating I owed more money due to the $1400 Recovery Rebate. I did not receive the $1400 and need advice on what should be done. I have tried to reach the IRS and after many hours on the phone have been cut-off 3 times. Still no answer as to why the Turbortax software said I owe $679 which I paid and IRS came back and said I owe $2089. Plus interest and penalties everyday.

HELP!!! I trusted Turbotax now what to do to resolve this issue.

[atulmishra]

Appreciated. I will try.

[Critter-3]

@Hunterinflorida 

This will not be resolved quickly so you really need to pay the tax bill asap to stop the interest/penalties from piling up.  

Next have a trace put on the missing payment you say you never got ... only once the IRS admits the payment was never cashed will they allow you to amend the return for the credit and amended returns can take 6 months or more to process. 

If the IRS says the stimulus was sent but you did not get it then you will have to have a trace put on the missing payment:

https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-j-p...