How do I amend 2020 federal which has been accepted

[mwfriederichs]

Well?  It's 3/25/21.  Where's the 2020  Turbo Tax amendment software update?  STILL WAITING. GET TYOUR ACT TOGETHER INTUIT. 

[DoninGA]

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@mwfriederichs wrote:

Well?  It's 3/25/21.  Where's the 2020  Turbo Tax amendment software update?  STILL WAITING. GET TYOUR ACT TOGETHER INTUIT. 

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The date was changed to 03/26.

The IRS Form 1040-X for amending a 2020 tax return is scheduled to be available on 03/26/2021 (subject to change)

[steinjd]

Do I need to bring up that today is 3/26/2021?  What is the current 1040X status?

I need to amend to account for a traditional IRA contribution, which will get our AGI below the cutoff for the Recovery Act distribution and for taking advantage of the excluded unemployment amounts.  TurboTax seems to have already recalculated my return, but their calculation, I believe, is wrong.  According to the IRS, one cannot take advantage of the unemployment exclusion unless ones pre-exclusion AGI is less than 150,000 (married filing jointly).  (https://www.irs.gov/forms-pubs/new-exclusion-of-up-to-10200-of-unemployment-compensation)   My interpretation is that if our AGI is 150,001 and 10,000 of that AGI is from unemployment, then one does not get to exclude the 10,000; however, if our AGI was 149,999, then our taxable income becomes 139,999 because we CAN exclude the $10,000 earned from unemployment.  So, it benefits us to add $2.00 to a traditional IRA so that we can get $10,002 off our taxable income plus the full $2800 amount of the Recovery Act funds rather than the graduated amount.  Is my interpretation correct?  

Is the IRS going to extend the 2020 tax year contribution deadline for IRAs past April 15, 2021?    

[macuser_22]

Are you covered by a retirement plan at work?

Only deductible Traditional IRA contributions can reduce your AGI and if  you are covered by a retirement plan at work then your MAGI must be less than $124,000 to have any deduction.  (Phase out $104K-$124K)

If you are not covered but your spouse is then the phase out limit is $196K - $206K.   

So possible one spouse could contribute unless both spouses have retirement plans at work.

And yes, the date to contribute to a 2020 IRA is May 17.

Covered by a retirement plan at work is usually indicated by box 13 on your W-2.
1) Box 13 (retirement plan) on your (or spouses) W-2 is checked,
2) Box 12 on your (or spouses) W-2 contains codes D, E, F, S, or AA/
3) You answered “yes” to the “Are you covered by a Retirement Plan at work” in the interview.
4) You have a self-employed retirement plan.

[chridavioffi]

I need to apply the Recovery rebate credit because I didn't do it during the original tax filing. Please help.

[Derek415]

It's 3/26/2021. Amending return for CD/Download version is not working correctly. It's not letting you select an existing turbotax file like in previous years. Need to add a W-2, which means money owed, don't think you're suppose to wait too long if want to avoid penalties.

Anyone figure out how to get this to work? Or more waiting?

[LinaJ2020]

To verify the steps how to amend your taxes, click here: Steps to amend

As IRS just extends the deadline to May 17, 2021, you have longer period of time to file and pay tax due.  To read details, click here:  Extension

@Derek415

[Anonymous]

@Derek415 It worked for me yesterday. I have Windows Deluxe and got an update yesterday. Was able to amend a return.  I had been waiting for awhile. Before it told me I needed to wait.

[PayPerPeddler]

I am in that boat.  My MAGI will be $150,013.  I want to amend and add $100 to my IRA to get below the threshold.  Turbo Tax is being very vague on everything.

[macuser_22]

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@PayPerPeddler wrote:

I am in that boat.  My MAGI will be $150,013.  I want to amend and add $100 to my IRA to get below the threshold.  Turbo Tax is being very vague on everything.

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Yes, you can amend prior to May 17 and add an IRA contribution for 2020, but note that if you are covered by a retirement plan at work then it might not be deducible.   See this IRS link for the limits.

https://www.irs.gov/Retirement-Plans/IRA-Deduction-Limits

Also note that amended returns are currently taking about 4-6 months to process so you will not see any results for months.

[PayPerPeddler]

Yes, I am covered by a work plan, however my wife is not.  She contributed $1,200 for 2020, we would amend to make it $1,300 to get us under the $150,000 threshold.

What do you think?

[Anonymous]

@PayPerPeddler Are you talking about getting under the threshold for a stimulus payment?

[PayPerPeddler]

Yes.  Do you have any suggestions?

[Anonymous]

Well the cutoff is 150K for AGI, not MAGI.  Assuming your AGI is 150,013, it would just start phasing out at 150K up to 160K.  If it's just you and your spouse, the difference in the stimulus payment would be $4. If you also have 2 children it would be $7.  Did you already get a payment or are you still waiting?  You can check the status on IRS website.

You can check to see what the amount would be for different AGI here

https://www.kiplinger.com/kiplinger-tools/taxes/third-stim[product key removed]lator/index.php

[JeffreyR77]

The $150,000 is a threshold where the Recovery Rebate Credit amount begins to be phased out.  Your credit is reduced by 5% of the amount your adjusted gross income exceeds $150,000.

Questions and Answers about the Stimulus