We received a partial amount of the third (2021) stimulus after filing our 2020 return. By partial I mean, we were phased out of additional stimulus due being just above the AGI threshold. The amended return I am now filing will result in an increase to both the third and prior 2 rounds of stimulus since our AGI will drop below the threshold (due to a $7K IRA contribution that I am reporting on the amendment).
Should TurboTax show the new refund totals, including the amount of additional stimulus that we will now qualify for? It's not clear from looking at the 1040-X. I believe all that the 1040-X is calculating is the additional Federal and State tax refund amounts but its hard to tell. By my tally, the new refund amounts inclusive of the additional stimulus amounts should be significantly larger than what TurboTax is currently showing. The increase in the third stimulus amount appears to not be included at all in the new refund amount.
Do I need to report anything in the amended return regarding the stimulus amounts that have already been paid or does the IRS account for that automatically as part of their reconciliation? The only thing I plan to report on the 1040-X is a $7000 traditional IRA contribution made after filing the original 2020 return. I do see that the 1040-X includes the total overpayment, which is inclusive of the Recovery Rebate Credits relating to the first and second round of stimulus. But if these Recovery Rebate Credits are to increase as a result of the amendment, shouldn't these also show in 1040-X? Right now its seems to not do that.
Also, do I need to show evidence of making the IRA contribution prior to May 17, 2021 in part III of form 1040-X?
