Do I need to amend my 2020 Taxes

[davidhope81]

I filed with TurboTax and it was accepted by IRS on February 13, 2021.  After that WMR does not show that they have any information regarding my return.  I am disabled and only filed for the recovery rebate credit.  The amount of refund was $4,000. I entered the wrong amount in filing my taxes. I did receive the first stimulus so I need correct the amount that was filed. Do I amend my taxes or wait for the IRS to send something?

[MinhT1]

If you claimed the Recovery Rebate credit on your 2020 tax return and stated that you did not receive the first stimulus but actually did receive it, I advise that you should wait to receive your refund before taking any action.

It is likely that the IRS will cross-check with their records and adjust your refund. If they do, all is fine and nothing needs to be done. If they do not adjust your refund, then you should amend your return and correct the Recovery rebate credit. With your amended return, you will enclose a check equal to the overpayment.

[davidhope81]

Thank you for answering my question.  I was not clear on the first message sent.  Yes, the first stimulus I got, but when doing my taxes the whole stimulus was added to my refund. When I called the IRS today I was told it is in the rejection section they just have not got around to it. The reason for the reject is because the first stimulus shows I received it via direct deposit and the checking account from that one to the 2020 tax return is different. 

My question is yes I received the $1,200, but I am still owed $500 for my two kids and still owed the 2nd stimulus. The IRS rep did see that no stimulus was sent to me for the second round but still it is in the reject section. Told me to wait 10wks or call back. Do I file a amended tax return or just wait it out.  

[KathrynG3 · Accepted solution]

If there were any mistakes on the stimulus payment section, the IRS will recalculate the Recovery Rebate Credit. and there will be a slight delay in processing your return. But, you will not need to do anything else.

• From the IRS: 2020 Recovery Rebate Credit — Topic G: Correcting issues after the 2020 tax return is filed
  • DO NOT file an amended tax return with the IRS. If you entered an amount on line 30 but made a mistake in calculating the amount, the IRS will calculate the correct amount of the Recovery Rebate Credit, make the correction to your tax return and continue processing your return. If a correction is needed, there may be a slight delay in processing your return and the IRS will send you a notice explaining any change made.
    
    To check the status of your refund from your original return, check Where's My Refund?

The first stimulus payment maximum was $1,200 for a taxpayer and $500 for every qualifying dependent under age 17 whom you financially support.

The second stimulus payment maximum was $600 for each taxpayer and qualifying dependent under age 17 who you financially support.

For more information, see: What does "financially support another person" mean?

[BearCon2020_]

I filed my 2020 tax returns (both federal and state) and they were accepted.  But I realized that I had forgotten that we did a cash out refi in 2020 (all the cash we got out went into repairing and improving our home).  We got a letter from the IRS saying that they are reviewing our return and will let us know of any further activity.  Do I need for file amended tax returns for 2020 before I hear back from the IRS about the refi?

[KathrynG3]

Possibly. It depends if you itemized deductions are took the standard deduction. If you took the standard deduction and the extra information does not change that status, then no amendment would be necessary. Keep the refi information for your records.

If deductions were itemized, then the cash out refi used for repairing and improving your home would need to be included. It is fine to begin the amendment now to calculate the difference in the tax.

It may save you some time to correspond directly through the contact information on the notice to resolve the situation. 

For more information, see: I got a letter or notice from the IRS.

What kinds of refinancing costs can I deduct?

@BearCon2020_

[JFLarson]

We will actually owe since we claimed the recovery rebate in error, we did actually receive the May 2020 stimulus and entered an amount as if we hadn't on line 30. Rather than getting a refund we will actually owe due to this error. Should we wait or file an amended return now. We don't want to pay a penalty.

[ThomasM125]

If you know what you owe, you can make a payment so you don't receive a penalty for late payment of tax. You probably don't need to prepare an amended return as the IRS will probably adjust the return you filed and send you an invoice for the payment due.

You can use this website to make a payment to the IRS:

https://www.irs.gov/payments