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Adam80
Returning Member

On my 2019 amended return, if I only made $1,000 from self-employment, why would I owe federal and state taxes of around $3,000 combined???

Reason for amending my 2019 return is to report my spouse's wages from self-employment that we forgot to include that year. I also collected early retirement that year, my spouse's self-employment wages we forgot to include are just $2,000. Why is my amended return saying that we would end up owing taxes to federal and state of around $3,000 combined???

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3 Replies

On my 2019 amended return, if I only made $1,000 from self-employment, why would I owe federal and state taxes of around $3,000 combined???

"I also collected early retirement that year"

was this omitted from your original tax return and reported the amended one? this would probably explain the large increase. if not read the following

we can not see your amended return.   look at column B on the 1040X. that shows the change from your original return to the amended one. 

if the only omission was the $1k of SE income line 1 that should increase by less than $1k (due to allowable deduction for 1/2 the SE tax). line 6 should increase by the tax on the increase on line 5. line 10 should increase by the SE tax around $150.

 

did you take credit for any taxes paid with the original return (line 16 column C ). Turbotax does not assume it was paid.

 

if this does not resolve the issue you'll need to look at each line and determine why it changed 

Adam80
Returning Member

On my 2019 amended return, if I only made $1,000 from self-employment, why would I owe federal and state taxes of around $3,000 combined???

Yes the early retirement was omitted on the original 2019 return. But after doing some research and talking with some more tax experts and as well as the Georgia state tax department, I found out that I have to file a Georgia State return separately because we didn't report any Georgia wages in 2019 original return so I can't amend something that I never filed but I'm just not sure how to go about doing that. Can I do it on TurboTax?

 

On my 2019 amended return, if I only made $1,000 from self-employment, why would I owe federal and state taxes of around $3,000 combined???

So you need to amend the federal but file an original GA return ... so choose to use the downloaded amendment version so you can use the FORMS mode if needed to make the corrections.   First amend the federal and then remove the amended state if possible...

 

State Amendments

The best way to "unamend" your state return is to go through your state return from the beginning and keep your eyes peeled for amend-related screens or questions.

The amend question usually appears right at the beginning or towards the end of the state interview (never in the middle).

Correct any entries that have to do with an amended return, e.g.:

  • Answer No when asked if you want to amend;
  • Clear any amend-related checkboxes;
  • Delete entries in the tax year field.
  • Note: In a few state programs, you actually have to answer Yes to the amend question so you can revisit the screens that contain the information you want to delete.

If you still can't get rid of your state amendment form, try clearing your state return and starting over.

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