topic Re: IRA Distribution in After you file

IRA Distribution

jgilfillan6 — Mon, 10 May 2021 22:21:58 GMT

I filed taxes through Turbo Tax yesterday. After printing my taxes I see the income is double what it should be. This is caused by IRA distribution being filed as Capital Gain profit rather than distribution. Is there a way this can be corrected?

Re: IRA Distribution

macuser_22 — Mon, 10 May 2021 22:40:31 GMT

IRA's are never capital gains. IRA distributions are entered with a 1099-R and go on the 1040 form line 4a and 4b - no where else.

What makes you think that?

Re: IRA Distribution

jgilfillan6 — Mon, 10 May 2021 22:53:59 GMT

I understand but I must have put it in in error. I have a 1099R and it asks for information from 1099 DIV. the capital gains line should not have anything in it. Is there a way I can correct it, it is doubling my income.

Re: IRA Distribution

jgilfillan6 — Mon, 10 May 2021 22:59:29 GMT

I know the distribution should be on 4B. On my printed return it is showing that amount as distribution AND Capital Gains thus doubling my income. Is there a way to amend my return to delete the Capital Gains portion, which should mot be on there?

Re: IRA Distribution

macuser_22 — Mon, 10 May 2021 23:12:16 GMT

Did you file already?

If you have not filed just delete the entry that is in error.

Re: IRA Distribution

jgilfillan6 — Mon, 10 May 2021 23:15:50 GMT

That is the problem, I filed yesterday and saw the problem when my forms were printed.

Re: IRA Distribution

macuser_22 — Mon, 10 May 2021 23:29:24 GMT

Then you probably need to amend but not right away.

If you filed, it is like dropping it into the mail - you cannot get it back if accepted by the IRS or state.

Do not rush to amend - no hurry. You have 3 years to amend and amended returns are taking 4-6 months or longer to be processed so waiting a few weeks will make little difference and amending too soon might just compound the problem. (If you amend today you probably will not see the results until August or September).

To amend your 2020 tax return:

-- First, *wait* to see if your return has been accepted or rejected by the IRS or state. DO NOT do anything until you receive the accept or reject e-mail.

-- If rejected, you can correct and re-send your return.

-- If accepted you should *wait* until your return has been processed and you receive your refund or conformation that any tax due has been paid. (If you file an amended return while you first return is being processed it can cause extended delays for both returns if two returns are in the system at the same time). In addition, if the IRS makes any change on your original return, you might end up having to amend the amendment – a sticky process that can take a year or more).

-- Then you can start the amend process.

It is suggested that it be mailed certified with return receipt (or other tracking service) to verify that the IRS receives it. That is the only proof of mailing that the IRS will accept.

-- Amended returns can be mailed or e-filed - allow 8-12 weeks - can take up to 16 weeks (4 months) for processing.

See this TurboTax FAQ for help with amending:

https://ttlc.intuit.com/questions/1894381-how-to-amend-change-or-correct-a-return-you-already-filed

You can check the status of your amended return here but allow 3 weeks after filing for it to show up:
https://www.irs.gov/filing/wheres-my-amended-return