Amend 2020 tax that was adjusted by IRS?

[Helloguys]

My 2020 tax was filed and accepted by IRS.  Refund was issued with adjustment.  (I think IRS made some adjustment to my charity donation).  I'm fine with the adjustment.

Now I received 1099-R forms because I overcontributed 401k in 2020 and made qualified withdraw in Feb 2021.  I didn't include the withdraw in my 2020 tax return.  Hence I need to amend my 2020 tax return now (to add the withdraw as "other income").

I launch TurboTax 2020.  It reads the 2020 file from my computer hard drive, which the status was "filed and accepted by IRS".  If I choose the button of "Amend", it will amend based on the original version instead of IRS adjusted version.  So my question is - what is the proper way to amend 2020 tax that was adjusted by IRS?

I have downloaded all transcripts from IRS (PDFs).  But I don't think TurboTax can import those PDFs, can it?  I guess what I need to do is to review those IRS transcripts and find out which number(s) they adjusted.  Then I need to amend those numbers in TurboTax.  I'll have to use the TurboTax "Form Mode" instead of "Step-by-Step Mode".  Because it's very difficult to find out which TurboTax steps is corresponding to the IRS-adjusted numbers on a form.

Now my challenge is - TurboTax seems not allow to change numbers in "Form Mode" once the tax is filed and accepted.  Was that the case?

Again, what is the proper way to amend 2020 tax that was adjusted by IRS?  Thank you!

[Cynthiad66]

Amend the return from the original return numbers.  IRS will make the adjustments based on their information.

Since you prepared your original tax return using TurboTax, log in to your account, open the tax return you already filed, and click on the link to amend your return. From there, the software will walk you through the process of filing the amendment.

[Helloguys]

@Cynthiad66 

I followed https://ttlc.intuit.com/community/earned-income-credit/help/what-if-i-have-a-401-k-excess-deferral/0... to amend my 2020 tax return.  I added the 401k withdraw as "other income".

But I'm confused about TurboTax's output.  It shows I have a lower AGI and getting extra refund.  I had expected I owe IRS some tax because I added more income.  Is this possible?  Thanks!

[GeorgeM777]

You are correct in that if you are adding income then your AGI should be higher on your amended return.  We understand that you entered the excess 401(k) contribution as "other income," but did you see the screen where you had the option to report this excess 401(k) contribution as Other income not already reported on a Form W-2 or Form 1099?  Your Explanation of Changes is consistent with TurboTax recommendations so that does not need to change.

Because your numbers in your post are not visible, is your 2020 AGI amount consistent with what was on your original 2020 return?  Also is the 2020 tax before credits amount consistent with what is on your original 2020 tax return?

@Helloguys

[Helloguys]

@GeorgeM777 

As you can see from the picture, the AGI was decreased by $451 and the tax before credits was decreased by $110.  I don't understand why my AGI would be lower when added the "other income".  And why my tax will be lower as well.  What would be a possible cause of that?  Thanks!