Refresh from prior year to complete extension return

[Nogee43]

I had to make an amendment for 2020 (TT 2020 Premier-Mac) concerning cost basis which changed by capital gains/loss.  In the mean time I filed an extension for 2021 (TT 2021 Premier-Mac).  I have completed the amendment for 2020 and assume that I need to refresh my 2020 data into my 2021 return.  Per research, I see that Capital Gains data is part of the transfer process.

Can I refresh my 2020 data into my 2021 return that was already started and an extension was performed?  I hope that I do not have to re-do any new data already entered for my 2021 extension.

[rjs · Accepted solution]

You can only transfer data from the previous year when you first start your tax return. If you have already started your 2021 tax return and entered 2021 information, you cannot "refresh" the 2020 information that you transferred.

The change in your 2020 capital gain will not make any difference in your 2021 tax return unless you have a capital loss carryover from 2020. If you had a net capital gain for 2020, both before and after the amendment, there is nothing you have to update in your 2021 tax return. The change in the amount of 2020 capital gain will not make any difference.

If you had a net capital loss for 2020, or the amendment changed it from a net gain to a net loss or vice versa, it might affect your 2021 tax return. In that case, you have two choices. You could start a new 2021 tax return and transfer the amended 2020 information. Or you could enter the updated 2020 capital loss information manually in the 2021 tax return that you have already started.

The extension doesn't matter. But if you made a payment with the extension, and you start a new 2021 tax return, you will have to manually enter the payment that you made with the extension.