Amending errors

[berry-ym]

I need to amend my 2018 state and federal returns. After significant failed attempts* to do this, I decided it was best to re-create the original file, with the intention of using the new file to attempt to re-launch the amended return. Thank goodness I saved a PDF version of the original returns to ensure I am accurate in re-capturing everything.

So, to get to the problem of the moment. I received 1099-R’s from 3 investment companies. ($24,000 + $11,000 + $9,000). On the original 1040, the total of $44,000 appears on line 4a – it’s all in the taxable column. On the re-created return, Line 4a of the 1040 captures $35,000 and $37,602 on 4b (the taxable amount). The 1040 worksheet shows the taxable amount is comprised of $28,602 + $9,000.  

What could possibly have changed? I have check my the data, line by line, to the PDF copy of the original return I saved at the time it was filed last year. I have also run the update process to ensure the software is fully up to date.

* Among the problems I’ve had: TT kept inserting a state return which was not applicable (in spite of removing the return multiple times according to TT instructions), TT incorrectly capturing the “original return amounts,” and therefore the change amounts, on the 1040X, TT overwriting my original return file with numbers I don’t recognize. I have used TT for 10+ years and have never experienced so many problems with the software.

[fanfare]

Here's another way --

You must have a copy of the original tax return you want to update.

The simplest way is to prepare your correct tax return (using TurboTax for example, or other means) and print it.
Then lay the paper printouts of both returns (correct and original) side-by-side.
You now have all the information needed to prepare Form1040X by hand.
It's pretty straight-forward.

The blank form in fillable PDF format and its instructions are available at www.irs.gov.

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How to file --

Do not include your old 1040 nor your revised 1040 because the Form 1040X reflects any changes there and becomes your new tax return.

Include any new/corrected document only if it shows federal tax withheld, and include in order only those Sequence Numbered tax forms and Schedules that changed or were added due to your amendment.
Attachment Sequence Number is on all the forms and Schedules that come after 1040.
Mail to the address shown for your location in the Instructions for Form 1040X.

[berry-ym]

Without going into why it's unacceptable that TT offers an amending feature that doesn't work, this doesn't answer my issue: that TT is treating my retirement income differently in the re-created original return than in the return than in the original original return I filed a year ago.

Can you please help me fix this?

[dmertz]

I assume that you meant to say that the entirely taxable $44,000 was on line 4b, not line 4a, on the originally filed Form 1040.  I'm not sure that there are any cases on a 2018 Form 1040 where the $44,000 would be on both lines 4 and 4b.

On your recreation, it seems that one of your Forms 1099-R has the IRA/SEP/SIMPLE box marked and the other two do not, or vice versa, and you somehow indicated that either the $11,000 distribution or the $24,000 distribution (or both) was not fully taxable.

Which Forms 1099-R have the IRA/SEP/SIMPLE box marked?

Do any of these Forms 1099-R have an amount in box 2a that is different from the amount in box 1 (or has a blank box 2a)?

Is any Form 8606 present in your recreation?

You could try deleting and reentering Forms 1099-R to determine which one is being treated as not fully taxable.

The difficulties that you had trying to amend from the original tax file suggest that the file had  been modified between the time that you filed and the time that you began the amendment process (or perhaps you inadvertently had initiated the amendment process before filing the original return, locking in values from an intermediate state of your tax return).  You'll want to make sure that the PDF that you have really does reflect your actually filed tax return.  You can obtain a transcript of your filed 2018 tax return from the IRS online:  https://www.irs.gov/individuals/get-transcript