Submitted both original K-1 and Amended K-1 at the same time on last return, do I need to amend my tax return?

[Horizon222]

Hi,

I had Corp-S investment on year 2020. On Apr 2021, my partner sent me one 2020 K-1 and later another amended K-1 later on May 2021. At that time I hadn't file me 2020 tax return yet, so I filed and submitted both original K-1 and amended K-1 at the same time for my 2020 tax return?  

I think I might did it wrong last year. Do I need to amend my 2020 tax return to correct it?

I did try to use the TurboTax 2020 try to amend the last return by removing the first original K1 and keep the amended K-1 only, the refund/due amount didn't change, do I need to amend it?

[ThomasM125]

You may not need to amend the return if the tax did not change when you removed the duplicate K-1 schedule. However, if the K-1 schedule reported a loss, it may not have been deductible in the current year so it wouldn't have affected your current year tax. However, it may have created a loss carryover that you would need to report, so you would need to amend the return in that circumstance.

I suggest you do the amended return to see if any of the forms or schedules in the return change, especially form 8582, passive activity loss limitation. If so, then you should scrutinize what is being reported to decide if you need to file the amended the return.

[Horizon222]

Hi, @ThomasM125 ,

Thanks for the reply! Yes, the 2020 K-1 did report a loss but had not been deductible in the 2020 tax year due to passive activity, but this business was closed down in 2021 due to pandemic, then the 2020 loss carryover to this 2021 return will be deductible. This triggered me that I saw more loss carryover in 2021 (almost double), this is how I figured I might submitted duplicate K-1 schedule in 2020 return.

I thought I need to submit both K-1 schedules, I didn't know I only need to submit the latest amended one.

There is no the forms or schedules in the return change, but the number in the form 8582, passive activity loss limitation do changes after removed the duplicate K-1 schedule .

Questions:

(1) The 2020 form 8582 might affect my 2021 return, correct?

(2) Due to the circumstance above , I still need to amend 2020 return, correct?

(3) Can I file this year 2021 return while the 2020 amended return still in process?

Thanks!

[MinhT1]

@Horizon222

1. Yes. The 2020 form 8582 would affect your 2021 tax return as there are unallowed passive losses.

2. Yes. You'll need to file an amended 2020 tax return to correct form 8582.

3. You can go ahead and file your 2021 tax return while your 2020 amended tax return is being processed.