Amending w/ 2021-1099R tax due should not cause a refund if I see the $10,200 unemployed reduction already on Schedule 1 that was filed in July 2021?

[MadelineL]

I was unemployed all of 2020, learned cannot contribute with “unearned Income”, contributions   interest returned to me 03/05/21

01/13/22 got “2021 1099 R” taxable amount $778 (interest), TurboTax Desktop says must amend my 2020, ok using my 2020 CD, I agree owe 10% for $78, but now says a refund of 1.5k

This is caused at clicking No at “Did you get an extra refund after you filed”, no other option but to click yes which wants to know how much, no refund received or expected

I think this is wrong?

Because I already got the 10,200 reduction of unemployment on schedule 1 row 8 UCE when I filed in July 2021? yes extension from waiting on IDES 1099 G

[JohnB5677]

I'd like better understand your position:

• You were on unemployment in 2020, and you did get the $10,200 exclusion
• You're going to amend your 2020 tax return.
• You received a 1099-R in 2021 that affected your 2020 tax return (This was for $778 of interest)
• You have a 2020 CD and posted it for the amendment.
• You also clicked that you did not get the refund after you filed the original tax return last year.
• The result was a $78 (10%) penalty plus a $1,500 refund.

These are the things to look at to determine what may have gone wrong.

Did you have a refund due on your original tax return?

If you did, did you get it?

How much would it have been?

[MadelineL]

thank you JohnB5677,

yes I had a refund due for 2020 on original return filed in July 2021 and I got it!

I mention filed in July as the news hit in March 2021 "those that have already filed (NOT ME) will automatically get an extra refund". By the time I did taxes in July TurboTax knew about the $10,200 exclusion and clearly stated so in the Schedule 1, so of course am not expecting the extra refund, so picked no.

I am starting to thing this is just a big bug, I have to pick yes or no at “Did you get an extra refund after you filed”. I could use the Yes box (not me) to fudge a number so that my final amended say you owe $78, mail it in...

[KrisD15]

To clarify, 

on your schedule 1, unemployment is reported on line 7,

where do you see the adjustment for the tax?

Also, what is your final tax due/refund on the original 1040? 

What did you actually receive as a refund? 

[MadelineL]

thank you KrisD15,

on the original,
yes schedule 1, see unemployment reported on line 7,
Line 8 has -10,200 and UCE

final tax refund on the original 1040, $2,410
actually receive as a refund, $2,410 (just about all withheld on unemployment 1099 G)

[KrisD15]

Yes, you are absolutely correct. 

You will need to select "Yes" to getting an additional refund to let the TurboTax program know you are not eligible for the unemployment adjustment (since it was done when you originally filed) 

This is NOT entered or reported on the amended return, it is only for a TurboTax worksheet. 

[MadelineL]

thank you KrisD15

Just stumbled on another clue, when starting out the amended the refund windows changed, TurboTax says "Why did the refund monitor just change to $0? " + help notes "...So we reset the monitor to $0 for the amended portion only...", but only the State went to $0, Fed did not.

[MarilynG1 · Accepted solution]

Did you go through the Federal Review again and answer the question about the amount of Stimulus you received?

It sounds like TurboTax may be generating some kind of credit for you, but since we can't see your return in this forum, you may want to compare your 1040X with your original 1040 to determine this, or review the topics in the Deductions/Credits section. 

[MadelineL]

Thank you MarilynG1

I did go through the Federal Review again, the questions about the amount of Stimulus are correct.

Next I will take your advice and compare the original 1040 against the 1040x and watch the deductions/credits section closely!

[MadelineL]

Thank you MarilynG1

Your advice and compare the original 1040 against the 1040x and watch the deductions/credits section closely *was key*. Also, using the Yes box (not me) to fudge a number so that my final amended say you owe $78 was a bad idea, as numbers above in 1040-X were still wrong (A original, B change, C new). *Work around, went old school*, download forms from IRS, all good numbers now are expected from original to deductions/credits to 1040-X.