I amended my 2020 return (above the line) that reduced my AGI by 18% but Turbo Tax bot claims no change in federal refund..

[elahoo]

Hello.

Thank you for taking a look at this:

IN 2020 I incurred $17,000 in lawyers fees (from employment discrimination suit, which qualifies as an "above the line" deduction. The resulting AGI adjustment lowered my AGI by 18$ (my AGI went from $97000 down to $80,000).  my original refund was $400.  When I followed the Turbo Tax instructions carefully (downloading the appropriate version for amending my 2020 taes originally prepared via Turbo Tax), the message Turbo Tax gave me was that it did not change my federal return (refund). 

This is difficult for me to believe when my taxable income dropped so much. Can this be possible, or should I expect a change (an increase in refund after I amended my AGI with the $17000 (above line) adjustment to my AGI??

Please help. Any info would be so appreciated.

Esla

[maglib]

@elahoo  this is a public forum so we cannot see your return.

It all depends how much was withheld in taxes that you paid into the Fed.   What income categories you had but, the basic rates are below (there is lower rates possible if you had capital gains or dividends).  So your tax  assuming you gave me Taxable Income Line 15 for 80k would have been for single would have been $13,396 and for $97k your tax liability would have been $17,366 a difference of $3,970.  Can you check line 15 amounts before and after?  Then did you enter the payments already made prior to amendment?

ndividual Tax Rate Schedules for 2020

Marginal Tax Bracket Rate	Single Taxable Income	Married Filing Jointly Taxable Income	Married Filing Separately Taxable Income	Head of Household Taxable Income
10%	$0 to $9,875	$0 to $19,750	$0 to $9,875	$0 to $14,100
12%	$9,876 to $40,125	$19,751 to $80,250	$9,876 to $40,125	$14,101 to $53,700
22%	$40,126 to $85,525	$80,251 to $171,050	$40,126 to $85,525	$53,701 to $85,500
24%	$85,526 to $163,300	$171,051 to $326,600	$85,526 to $163,300	$85,501 to $163,300
32%	$163,301 to $207,350	$326,601 to $414,700	$163,301 to $207,350	$163,301 to $207,350
35%	$207,351 to $518,400	$414,701 to $622,050	$207,351 to $311,025	$207,351 to $518,400
37%	$518,401 and higher	$622,051 and higher	$311,026 and higher	$518,401 and higher

[fanfare]

If your AGI is reduced, your tax is also reduced.

If you do not see a reduced tax, you did not do the amendment correctly.

@elahoo 

[elahoo]

Thanks so much for your reply.  The Intuit/Turbotax amended 2020 return did register the $17000 reduction in my adjusted gross income. It's just that it  (according to Turbo Tax) did not then result in an increase in my refund amount. I thought that was odd since my taxable amount (my new AGI) reduced my tax liability by 18 percent (in dollars, my AGI went from $97000 down to $80000, but with no change in the amount I am refunded. My original 2020 return left me with a refund of 400 dollars. When my amendment reduced my AGI by 18 percent, I thought I would see an increase in my refund amount, but according to Turbotax, I do not.   I just want to make sure I'm not leaving anything on the table in terms of refund.  Thanks again.

Esla

[elahoo]

Thanks so much for your reply.  The Intuit/Turbotax amended 2020 return did register the $17000 reduction in my adjusted gross income. It's just that it  (according to Turbo Tax) did not then result in an increase in my refund amount. I thought that was odd since my taxable amount (my new AGI) reduced my tax liability by 18 percent (in dollars, my AGI went from $97000 down to $80000, but with no change in the amount I am refunded. My original 2020 return left me with a refund of 400 dollars. When my amendment reduced my AGI by 18 percent, I thought I would see an increase in my refund amount, but according to Turbotax, I do not.   I just want to make sure I'm not leaving anything on the table in terms of refund.  Thanks again.

My AGI changed when I had zero tax liability (I had an original refund of 400 dollars. WHen I amended (legit amendment above the line, which reduced my AGI by 18 percent), there was no change in refund amount, so naturally I thought I did something wrong.

Esla

[elahoo]

I did enter payments made prior to the amendments- the tax payments made prior to amendment (where I received 400 dollars refund) was same as taxes paid after the amendment. THis is where it seemed wierd, since no change in original refund amount- it may be that, since there was no change in my taxes paid after the amendment was entered, I did something wrong-  OR perhaps since I had no tax liability originally (after doing my taxes and receiving a refund of 4000 dollars, then adjusting down my AGI by 18 percent didnt matter?

So confusing for this mere mortal girl

Esla

[elahoo]

correction- original refund was 400 dollares, and not 4000 dollars.

[fanfare]

if you already had no tax, then there is no point to amend for further deductions, unless thay are refundable.

This is one that is not.

@elahoo 

[maglib]

@elahoo  it maybe an added refund to the initial filing.

This is a public forum so we can't see your return.. what is the original tax liability vs. new tax liability?

Or you had only $400 paid in so only get $400 refunded.  

I think your are missing something in your entry on the amendment. Did you start with the original return that was filed and follow the directions correctly to amend? Did you make sure the prior amount received is correct?
HOW TO AMEND from TT:
If you want to change or correct some info on a prior-year tax return after you've filed, you may need to amend your return. Here are some things to know before you begin:

You have three years from the date you filed your return or two years after you paid the tax due (whichever is later) to file an amendment.
Make sure you really need to amend.
Wait until your return has been accepted (or mailed if paper-filing).
Use the same TurboTax account you used to file your original return.
Once you begin your amendment, you'll see your original return. Only make changes to the areas of your return that need amending. The refund calculator will start new at $0 and only reflect the changes in the refund or tax due.
Any changes you make to amend your federal return will automatically be transferred over to your state return.
Select your product below and follow the instructions.

TurboTax Online
TurboTax Desktop
If you want to track the status of your amended return, use the IRS Where's My Amended Return? tracking tool. Allow at least 16 weeks for the IRS to process your amended return.

Related Information:

How do I amend my state tax return?
Can I e-file my federal Form 1040-X amended return?

[elahoo]

The $400 was an original refund.  My deadline for the 3 year to amend timeframe will run out after tomorrow.

I ran the 2020 amendment through the Turbo Tax "2020 amend" program following your suggestion and indeed there was no increase in my refund. AN odd relief that apparently I'm not leaving anything on the table.

It  appears that, even though my AGI amendment lowered my AGI  considerably, it does nothing to further increase my refund (my original refund was about $400) like I thought it might. Apparently, reducing liability (in my case) does not always  translate to a larger refund.