@johnf2 wrote:
No need to enter a "negative amount" anywhere in the software. When you amend, enter the newly amended amount of it being non-taxable by changing the prior positive addition to income to zero. The Amended return will report zero as opposed to any prior taxable amount.
I don't believe this works the way you think it works.
If you got a 1099 from the state or federal government indicating a taxable payment, and you just delete it from your return, you will almost certainly get an automated letter from the IRS because their computers will detect a mis-match between what is on file and what you report. What you need to do is report the 1099 as income, then report an adjustment to income.
The correct way to report the adjustment is to enter the adjustment and the reason on line 24z of schedule 1. This is only accessible in Forms mode of the desktop version of turbotax installed on your own Mac or PC. If you are using Turbotax online, you can't use line 24z, so the advice from the company is to enter a negative amount of "other reportable income not on a 1099", and the adjustment will be made on line 8z.
Then, the 1040X will show the reduction in taxable income and the tax refund due as a result of the adjustment to income.
