Questions upon questions. Let me know if this one needs a new thread.
The amended federal return we could submit electronically from our CD based TT software. When I gathered the printed documents for her to sign for the state amended return which has to be mailed, we noticed a warning against filing frivolous returns in the signature area of the amended state return. The changes being made increase her income but not her tax liability (due to deductions), but we were filing the corrected information since without counting some of the scholarship money as income part of the ESA distribution would have need taxed. In the box for why the return was being amended we put, "I am claiming some college scholarship money as income."
This sort of correction wouldn't be considered frivolous?
