I need to amend a few returns because of the passage of HR 5863 - Federal Disaster Tax Relief Act of 2023. The legal award I claimed as income is now retroactively tax exempt. Do I simply delete the amount I entered into the misc income data field in the addition column, or do I enter an identical amount in the data field in the subtraction column so the two amounts off set.
I would enter a negating entry to help explain your stance for eliminating the income.
removing an addition by changing it to -0- is more correct.
Either way the difference will appear in Col (B) of Federal1040-X
1040-X Explanation is where you tell the IRS why you are filing for a refund.
are you amending a state tax return?
the same principle applies.