I discovered I omitted a form1099 from a broker. Originally I had a return that I partially credited to 2020 taxes. The return was $3,000. I credited $2,000 to 2020 taxes and got a check for $1,000. The original tax return was accepted and the check was deposited. Now because of the error I owe about $500. It seems to me that then I would either send $500 to the IRS and my credit for my 2020 taxes would stay at $2,000 or my credit for 2020 taxes would be $1,500 and I would send nothing right now with my amended return
The way I complete Turbo Tax it says that I both owe a $500 check and that my return is $1,500. Could you tell me what I'm doing incorrectly?
On 1040X line 16 - if I am sending $500 should I enter it there? Turbo tax doesn't show me how to do that unless I simply override the line on the form.
You have calculated correctly.
1. Regarding the $2,000 credit toward the 2020 return, yes, it should be reduced by $500. This does not result in a $1,000 payment. It accurately reflects the 2019 tax refund should have been $2,500 in total.
2. No, do not add $500 to Line 16. This reports payments already made and received by the IRS. The $500 has not yet been submitted. The $500 should be listed on Line 20.
The amended return can be e-filed. But you will have to wait until Form 1040-X is available. It will take 16 weeks to process on average.
Click the link for the most recent information about when Form 1040-X will be available
You have calculated correctly.
1. Regarding the $2,000 credit toward the 2020 return, yes, it should be reduced by $500. This does not result in a $1,000 payment. It accurately reflects the 2019 tax refund should have been $2,500 in total.
2. No, do not add $500 to Line 16. This reports payments already made and received by the IRS. The $500 has not yet been submitted. The $500 should be listed on Line 20.
The amended return can be e-filed. But you will have to wait until Form 1040-X is available. It will take 16 weeks to process on average.
Click the link for the most recent information about when Form 1040-X will be available