If filing 1040-X should I also include a previous correction?

[qofmiwok]

The IRS sent me a correction because I entered the wrong amount of payments made.  
Now I need to file an amended return to correct something else.  Should I also correct the mistake that they reported to me?  Or leave it wrong as it was before?

[BillM223]

Was this notice from the IRS relatively recent?

If so, I would reply to the letter (they want a reply anyway (if for nothing that you accept their correction), and tell them about this other issue and ask them if they would make this other correct as well (and that you accept their initial correction).

The office(s) that generate these letters have the power to amend your return (as you can see), so give them to chance to (1) save you and the IRS some paperwork, or (2) tell you how they would like you to handle it (like amending).

[qofmiwok]

The letter came 2 months ago.  They did not request a response from me, just explained why my refund was less than shown on my return.  (I accidentally double counted the amount sent with my request for extension by entering it in 2 places.)  I see the last date to respond to that was 1/27/23.

It appears that the 1040-X just shows the "additional taxes due" with the change I need to make, so I'm thinking I should just pay that additional amount and not make any adjustments to the total payments made.  

However, now I am concerned that the 1040-X is not being filled out correctly anyway because the "original" fields for AGI, deductions etc don't match the return as filed.  I couldn't figure out how to get the box checked that I needed to (Box G on schedule E) with the step-by-step, so I instead edited the form directly.  Maybe this is a bad idea?  If I can't figure out how to get that box checked through step-by-step should I just re-do the whole taxes and fill out my own 1040-X?

[RobertB4444]

If you are going to make the change to the return then remember that the return the IRS now has on file for you is the one they reference in their letter.  So you need to create that return.  Everything should match what you originally filed except the change that the IRS has already made.  Once you've created that 1040X so that the correct refund amount (the amount you received is shown on it THEN you should make whatever the new change is.  

If you have to make manual entries in order to do that it's fine.  You'll need to mail it in anyway so the 1040X and the attached 1040 just need to be accurate.

@qofmiwok 

[qofmiwok]

i want to be clear that I understand.  I should fix the mistake that the IRS found first.  Then I should also change the new thing that needs to be changed.

But what I'm saying is that the 1040-X for "original" doesn't match either one of those.  That is what is odd.  Is it because I modified a form directly without going through step by step?

[fanfare · Accepted solution]

Note that Column A is marked "or as previously adjusted". Similarly, so is Line  18.

A lot  of users report here that 1040-X from turbotax has problems.

When mailing 1040-X, do not include your old 1040 nor your revised 1040 because the Form 1040-X reflects any changes there and becomes your new tax return.

include in order only those Sequence Numbered tax forms and Schedules that changed or were added due to your amendment.
Attachment Sequence Number is on all the forms and Schedules that come after 1040.

If you are using TurboTax you have to do this by visual comparison. The program won't break out those pages for you.

@qofmiwok