Late 2020 Corrections to 1099 Increased Capital Loss Carryover from 2020

[Chemist_Tony]

I filed my 2020 income tax on April 10, 2020, then I got three late form 1099 composite corrections (last July 9, 2020). The corrections only increased the Capital Loss on Schedule D which already exceeded $3K, so it did not change my refund. However, since I want to use the increased capital loss carryover on my 2021 income tax return, I am assuming that I need to file an amended 2020 Income Tax Return to use the increased capital loss carryover. Or will IRS automatically track the increased capital loss carryover from the corrected 1099 filings?

If I need to file the amended 2020 return, how long do I wait after filing the amended 2020 return to file the 2021 return?  I have already filed for an extension to the 2021 return.  

[leeloo]

Yes, you have to amend 2020 to include your increased capital loss. There is no set time that you should wait. SInce you are already late for 2021 and have filed an extension, , you have time to amend and give it a couple of months for the IRS to catch up. However, there is no guarantees that they will catch up even by the end of the year. They are extremely backed up.

[Critter-3]

Yes you need to amend the 2020 return but you do NOT need to wait for them to process the amendment (which could take 6 months to a year or more ).  You can efile the 2021 return now with the correct carryover.