Amending a 2020 Return BEFORE Starting a 2021 Return

[wilder7273]

I need to amend my 2020 return because I entered the wrong contribution amount to my Roth IRA.  When I complete the amendment in my downloaded software, should I then begin my 2021 return? AND, will my 2021 return recognize the amendment I made?

[Carl]

You are correct that you need to amend your 2020 return before you can even start your 2021 tax return. It's most important that when you start your 2021 tax return, that you ensure you are importing from the amended 2020 return, and not the originally filed 2020 tax return.

Before you amend, get your AGI of the originally filed 2020 return, as you will need that original AGI in order to e-file your 2021 tax return. If your amending changes your 2020 AGI, then the AGI that the IRS does not have on file for 2020 will be imported into your 2021 tax return. But you will have the opportunity to change it to the original 2020 AGI so you can successfully e-file the 2021 tax return.

How you ensure you import the amended 2020 return depends on weather you used the online version of desktop version to prepare your 2020 tax return, and which you are using for your 2021 return as well.

[KrisD15]

Exactly as Carl states.

And here is a link explaining how to transfer the files if you are using the Desktop program.

Transfer using Windows or Mac

@wilder7273

@wilder7273 

[wilder7273]

Thank you all!!!

I completed the amendment that I will mail in for Federal and State, and now started by 2021 return and found the amended return to get the process started. However, my return starts off showing the amount I owe for Federal due to my amendment. Is that supposed to happen?

[Carl]

However, my return starts off showing the amount I owe for Federal due to my amendment. Is that supposed to happen?

I don't know the answer to that question, because I've never seen or heard of that before. Are you sure it's not displaying the amount under a column labeled "2020" or something like that maybe?

[wilder7273]

***User Error***, I checked a box incorrectly and in the end, nothing changed in my federal and state taxes for amount owed or due, but I did need to correct an amount I listed for my Roth IRA contribution. So I think I should still send in the amendment, even though it doesn't change the final outcome. Would you all agree?

[Carl]

Typically, if amending does not change your tax liability, then you don't bother. However, there are things that while they won't affect the tax liability of the tax year being amended, it will or can affect a future tax liability. So in that case you should amend, required or not.