How to report 2024 1040-SR line 37 calculation error after initial tax return was submitted and accepted.

[CWP2023]

I've tried to submit an issue but cannot find where to do so.  The help desk was not able to help me. They directed me to the 100 percent accuracy guarantee link which does not work if the IRS has not first notified you. Need help contacting someone from Turbo Tax.  I have additional issues with the 1040-X form which I'll address in another post.

I found a calculation error on Line 37 of the 1040-SR form done by Turbo Tax (desk top version) after I electronically filed my return, and the IRS took the money.  The program over calculated the amount owed.  I found the error after I amended my return due to a late K-1 form sent to me. When I completed the amended return (doing step by step) the Turbo Tax showed I should get a refund.  This did not make any sense the K-1 form did not change my AGI or taxable income amounts.  I triple checked the first return submitted for errors on my part and could not find any data entry mistakes.  I went line by line through the 1040-SR of my original return using a spread sheet to validate all the data used for each line of the1040-SR form.  The 1040-SR line 37 calculated a taxes due amount higher than it should.  The calculation on line 37 for amount owed is subtract line 33 (total payments) from Line 24 (Total Tax).  The difference between the amount Turbo Tax calculated I owed and what I calculated exactly matches the refund amount on amended return.  

[VolvoGirl]

Could there be a penalty on line 38?   That adds into line 37.

You will still get the refund from the first original return or still need to pay the first tax due.  In fact you should not even amend until the first return has fully processed and you get the first refund or your tax due payment has cleared.  

Then the amended 1040X return is only for the difference you get back or owe.  I think the cover sheet shows what the original return WOULD have been if you did it right the first time.  Ignore the new 1040 that might print out.

Go by the actual 1040X.  Line 18 should be your original refund amount and line 22 should be your additional refund.  If you paid on your original return it will be on line 16.  If there is an amount owed with the amendment, it will be on line 20.

If you have a tax due, do not send the 1040V.  Just include a check with the 1040X.  Ignore the 1040V.  That is for the original return or what the original return would have been if it didn’t need correcting.  Don’t pay the amount on the 1040V.  Pay the amount on the actual 1040X line 20.

[CWP2023]

Reply to your comments.

Could there be a penalty on line 38? That adds into line 27. 

I found a penalty on the original line 38 equaling the amount of the refund.

The amended 1040S-R also shows the same penalty. 

You will still get the refund from the first original return or still need to pay the first tax due. In fact you should not even amend until the first return has fully processed and you get the first refund or your tax due payment has cleared. 

I ended up owning tax of the first return.  The IRS has already taken it from my bank account. I assume that they have processed my return, and it has cleared

Then the amended 1040X return is only for the difference you get back or owe. I think the cover sheet shows what the original return WOULD have been if you did it right the first time. Ignore the new 1040 that might print out. 

I have issues with the 1040-X.  Would is the operative term here

1: When I launched TT it asked me to update which I did.  Then it asked me if i needed to amend a return.  I selected amend and opened the return I wanted to amend.  I entered the data for the new K-1 form (all entries = 0) and most likely saved. TT overwrote my original tax file.  I used my saved PDF and original W2, 1099s, etc for checking data entries

2: TT now showed I owed a considerable amount to the IRS.  I was confident that was not the case.  I dug into the forms and found that there was shown a carryover from 2023 which should not have been there on 1040-X Line 18 (overpayment) and that the tax payment already sent to the IRS was not accounted for on Line 16 (Total amount paid on original return).  I manually fixed these errors.  Once I did this TT showed a refund amount.  

3:  On the 1040-X lines 1 through 15 column A the original amounts shown (the cover sheet shows what the original return WOULD have been if you did it right the first time. (Would being the operative term here) do not match my original return.  The only entries that match (A to C) are line 2 (STD Deduction) and line 13 (EST Tax). I double checked again using my saved PDF.  How do I correct the Line 1 - 15 column A entries? Does it matter?

Go by the actual 1040X. Line 18 should be your original refund amount and line 22 should be your additional refund. If you paid on your original return, it will be on line 16. If there is an amount owed with the amendment, it will be on line 20.  I did not get a refund on my first return.  On the 1040-X Line 18 is 0, Line 20 is 0 and lines 21 and 22 shows a new refund amount.

If you have a tax due, do not send the 1040V. Just include a check with the 1040X. Ignore the 1040V. That is for the original return or what the original return would have been if it didn’t need correcting. Don’t pay the amount on the 1040V. Pay the amount on the actual 1040X line 20. I do not have a 1040V form.  On the 1040-X Line 20 is 0 (amount you owe), line 21 (amount over paid) and line 22 (refund to you) have the same number (exactly the amount of the tax penalty on Line 38 of the original file) 

Thank you for the help.

[VolvoGirl]

Before you amended you were suppose to save a copy of your original .tax2024 file with a new name so you don't overwrite it.  I think it says to do that before you start amending.  Or maybe you have a backup of the original .tax2024 and pdf files.               

[CWP2023]

My bad for not renaming and saving the original TT file.  Fortunately, I saved the PDF. 

[VolvoGirl]

If you want or need the original tax data file you might be able to get it back.  You are using the Desktop program?  First make a copy of your amended return with another name File-SAVE AS

Then......

1. Open your return
2. Switch to Forms Mode
3. In the left pane, select Form 1040X
Windows: After the form is generated in the right pane, select the Delete Form button at the bottom of the window
Mac: From the Forms menu, select Remove Form 1040X
4. Follow the on-screen instructions to remove the 1040X from your return
5. Switch back to interview mode by selecting Step-by-Step in the upper right corner (Windows) or EasyStep in the upper left corner (Mac)
6. Important: Undo any changes you made to your return after you selected the option to amend your  return, as deleting your 1040X won't undo those entries

[Mike9241]

probably don't have to do anything. line 37 is balance due which would include any penalty on line 38. if it's incorrect the IRS will likely automatically calculate the correct amount and send you that with a notice  a few weeks later as to the change made.