"We don't detect any differences between your original 2023 return and your amended return" - Do I still need to amend?

[Snowy_Desert]

Hello all,

In the original 2023 return, I forgot to use the ESPP discount income which resulted in double taxation, and different net losses in Sch D Carryforward amounts. So I started to amend my return to use the 'adjusted' cost basis this time so I can get credit for the ~$2,000 I double-taxed myself on. 

I am done and ready to print my return, however it is telling me there are no differences. Sch D does look different for sure as well as the Form 8949 (in terms of Cost basis amount). 

Do I still put an 'explanation of changes' or should I not amend my return? 

[Snowy_Desert]

I went over this IRS tool and answered the questions and it told me to NOT amend my return. But I asked previously here and I was told by TT employees that I need to amend if Sch D net loss is different between the original and the amended (After putting the adjusted cost basis). I honestly don't care about the $2,000 if I don't have to amend as I carry a large loss of over $40K. 

https://www.irs.gov/help/ita/should-i-file-an-amended-return

[DianeW777]

It depends and it's completely your decision. You would definitely add your explanation to your amended return. The reason you may have been told not to amend is because your tax results won't change. The maximum allowed capital loss for any tax year is $3,000. The tool may not account for the fact that your carryover would be larger.

If you don't amend you will lose the $2,000 loss you believe you should have included. The year that it will make a difference would be in a year when you have large capital gains to offset any losses.

[Snowy_Desert]

I guess the question is, will I be in trouble with the IRS if I choose not to amend? 

[fanfare]

After you e-File,
get Form 1040-X from IRS website and mail it in with correct Schedule D and changed Form(s) 8949 attached.
Note: When you are not changing any dollar amounts on your Form 1040-X, you can leave all the lines 1-23 EMPTY.

Do not include your old 1040 nor your revised 1040 because  they are identical.

Part II explanation: correcting carryforward numbers, tax unchanged.

@Snowy_Desert 

[fanfare]

Q. E-File of 1040-X makes it so much easier to amend , why would you not do it ?

A. Many forum users complain vehemently about the TurboTax amend process.

@Snowy_Desert 

[Snowy_Desert]

I actually clicked on ‘amend a return’ on 2023 TT premier, and corrected the ESPP cost basis. Are you saying to just print the 1040-X, SchD and the form 8949, and mail only the 3 items to IRS? Also, how about AZ return, should I amend that one as well? 

[DianeW777]

Yes, that is what you should send to the IRS. And the 2023 amended return should be filed even if after your have filed your 2024 with the correct capital loss carryover.

• Form 1040-X, Schedule D, Form 8949 along with your explanation on page 2 of Form 1040-X.  As indicated you could include your capital loss carryover worksheet (not required) as backup to your explanation. 

@Snowy_Desert