Amended return for 2022 and filing 2023 return

[jasongironella]

Hi, 

I just realized that I was mailed a corrected 1099-MISC for tax year 2022 which would result to additional refund from Fed & State. I want to file an amended 2022 tax return which I believe would take 12-16 weeks to be processed. Given that my total state tax refund is higher (after the amended return), should I input that "amended" refund amount on my 2023 tax returns? My concern is I want to file my 2023 taxes already and I would think it would be processed sooner than the amended return and the state refund amount would not match the current amount in their system.

Can I ask guidance please. Thank you. 

[VolvoGirl]

Use the amount you actually got in 2023 for a state refund.  But it might not be needed.  Did you take the Standard Deduction or Itemized on your 2022 federal return?  

A State Tax Refund is taxable if you itemized deductions on that prior year's federal return and took a deduction for state income taxes instead of the sales tax. You got a deduction benefit for it so now you have to include it as income. If you took the Standard Deduction it is not taxable and you don't need to report it. Check your 1040 line 12 to see which deduction you took.

[jasongironella]

Do you mean I should enter the original amount of refund i received in 2023? I don’t have to add it up and include this extra refund I’m expecting to receive after the amended return is processed?

i noticed my state refund isn’t deductible. I did Itemized Deduction but upon answering all the corresponding pages in TurboTax, it said my state refund is not taxable. 
thanks for the help. 

[AmyC]

All 2022 income must be on a 2022 tax form.  You can't enter 2022 information on a 2023 return. You must file the amended return and wait. The process may take longer than shown for the amended. If you filed with us, you can file the amended electronically.

@VolvoGirl  was letting you know that if your 1099-MISC is for a state refund, you may not need to amend your return- if it had no effect on your return.

[jasongironella]

Hello @AmyC , thanks for the guidance but to clarify, I don’t intend to apply the amended 1099 for 2022 to my 2023 taxes. What I’m asking is knowing I am also filing a 2022 amended return which increases my state refund by $280 (original refund is $4200), should I report on my 2023 tax returns that my  state refund is $4,480(even though IRS would most likely process my 2023 returns sooner than the amended 2022)?

Would it be fine that IRS will see my state refund on 2023 ITR is higher than the $4200 that is probably on their current system?

I hope to not have to wait for this 2022 amended ITR to be processed before I file my 2023 ITR because TurboTax instructed that I can only mail the amended one due to some scenario in my forms. I worry too that tax deadline may have pass before they process the amended ITR. 

[AmyC · Accepted solution]

Now it makes sense! Did you itemize on your 2022 tax return? 

• No, then none of this matters.
• Yes, did you max out the $10,000 SALT limitation?
  • No, you deducted less than $10,000 for state and local taxes so all of your state refund is reportable.
  • Yes, you reached the cap and had paid more tax than allowed, then you did not report the additional state refund as a deduction and it does not matter.

Thus, maybe you don't have to worry about 2023 if you either took the standard deduction or you paid in over $10,000 in state and local taxes and had money left not claimed.

You need to file your 2023. The  2022 amend will take a long time. If you know the correct numbers for your 2023 return, I would file using the correct numbers regardless of the amended not being processed, Eventually it will be processed and you won't need to file an amended 2023.

IRS issues guidance on state tax payments

[jasongironella]

Thank you @AmyC. Now I know what to do.