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How do I amend my 2023 Iowa state tax return to correct my tax exempt interest?

by TurboTax•1• Updated 3 weeks ago

Due to a TurboTax error, some customers incorrectly reported tax exempt interest on their Iowa return. As a result, these customers might have overpaid their Iowa state taxes.

If we notified you, we recommend you review and, if needed, amend your state tax return as soon as possible.

Please select your version of TurboTax below and follow the instructions.

  1. Log in to the TurboTax account where you prepared your 2023 return. In Tax Home, scroll down to Your tax returns & documents, and choose 2023. If you have not already done so, we recommend that you print a copy of your original 2023 tax return for your records by selecting Download/print return (PDF).
  1. Select Amend (change) return and then select Amend Using TurboTax Online.
  2. On the OK, let’s get a kickstart on your 2023 amended return screen, choose TurboTax sent me an email, then Continue.
  3. On the What did we contact you about? screen, choose Something else then Continue.
  4. On the Tell us which 2023 return(s) you want to amend screen, select 2023 Iowa return. Then Continue. Your state refund/balance due tracker will usually reset to $0. This is normal.
  1. On the Let’s get your state taxes done right screen, select Continue.
  2. On the Let’s amend your state taxes screen, select Amend next to Iowa.
  3. On the Your 2023 Iowa  Return screen, select Continue.
  4. On the Let’s Amend Your Iowa Return screen, select Yes, let’s amend and get it done (Recommended), then Continue.
  1. On the Amount Paid on Original Return screen, verify the amount of tax paid on the original return by reviewing line 34 of Iowa 1040. Make corrections, if needed. If none, enter zero. Then select Continue.
  2. On the Overpayment on the Original Return  screen, enter the overpayment, if any, claimed on the original return by reviewing line 31 of Iowa 1040. Make corrections, if needed. If none, enter zero. Then select Continue.
    NOTE: If the Iowa state refund meter does not change, you do not need to amend your return and may stop here. Exit out of the return by selecting Cancel Amend from the left side menu.
  1. On the Reason for Amending Original Return screen, enter 9 as the Reason Code, Then select Continue.
  2. On the About Your Iowa Amended Return screen, scroll down to page 2 and enter in Explanation of changes to income, deductions, or credits: Line reference: 3 and Reason: “TO CORRECT TAX EXEMPT INTEREST”, Then Continue.
  1. On the Let’s Make Sure You’re Ready to Review screen, select Yes, I’ve entered everything and let’s review. Then Continue.
  1. On the Ready to Review Your State Return screen, select Continue. 
  2. On the Smart Check Result screen, select Continue. 
  3. On the Let’s amend your state taxes screen, select Continue.
  4. On the Let's get ready to file screen, select Check my Return.
  5. On the Just about ready to file. But First… Screen, select Continue.
  6. On the Let’s take care of these details now screen, select Review.
  7. On the Here are the results of our final review screen, select Fix Iowa Return.
  8. On the Not Eligible for Electronic Filing screen, select Continue.
  9. On the Let’s take care of these details now screen, select Continue.
  10. On the We still have a couple of details to button up screen, select Continue.
  11. On the This year's recap screen, select Skip recap.
  12. On the Time to put it all together for one last look screen, select Continue.
  13. On the Great job so far! screen, select Continue.
  14. On the Just one more step and we’ll file your return screen, select Start by Step 3 then continue through the screens to download, print and save your Iowa amended return.
    NOTE: You are only amending your state tax return. The changes do not impact your Federal return, so please do not refile it.
  1. Once your tax return has been printed, you need to sign, date, and mail the amended return. The mailing address and filing instructions are included on the File by Mail Instructions for your 2023 Iowa Amended Tax Return. 
    NOTE: Be sure to Print and Save the amended return for your records.
  1. Launch TurboTax and open your 2023 return.
  2. Before you make any changes, select File and Save As... then add Amended 2023 return to the file name to preserve your original return.
  1. Select Online and Check for Updates. Allow the program to update if any are available.
  2. Select the Federal Taxes tab, (Personal tab if you’re using Home & Business), and then select Other Tax Situations. You may be asked to answer a few preliminary questions before you see a list of categories. Scroll down to Other Tax Forms select Start next to Amend a Return.
  3. On the We’ll help you change (amend) your return screen, select Continue.
  4. On the Did you already file your return? screen, select Yes, I’ve already filed my return. Then select I was contacted by TurboTax and told I may need to amend for some other reason. Then select Continue. The refund meters will reset to -0-. This is normal.
  1. On the What do you need to change on your return? screen, scroll down to the bottom and select Update next to State Return.
  2. On the Let’s work on your state return screen, select Continue.
  3. On the Your State Returns screen, select Edit next to Iowa. 
  4. On Your 2023 Iowa Return screen, select Continue.
  5. On the Let’s Amend Your Iowa Return screen, select Yes, let’s amend and get it done (Recommended). Then select Continue.
  1. On the Amount Paid on Original Return screen, verify the amount of tax paid on the original return by reviewing line 34 of Iowa 1040. Make corrections, if needed. If none, enter zero. Then select Continue.
  2. On the Overpayment on the Original Return  screen, enter the overpayment, if any, claimed on the original return by reviewing line 31 of Iowa 1040. Make corrections, if needed. If none, enter zero. Then select Continue.
    NOTE: If the Iowa state refund meter does not change, you do not need to amend your return and may stop here. Exit out of the return without saving.
  1. On the Reason for Amending Original Return screen, enter 9 as the Reason Code, Then select Continue.
  2. On the About Your Iowa Amended Return screen, scroll down the screen to Explanation of changes to income, deductions, or credits:. Under Line reference, enter 3. Then under Reason, enter “TO CORRECT TAX EXEMPT INTEREST ”. Then select Continue.
  3. On the Let’s Make Sure You’re Ready to Review screen, select Yes, I’ve entered everything and let’s review. Then Continue.
  1. On the Ready to Review Your State Return screen, select Continue.
  2. On the Check this Entry screen, make any corrections and then select Continue.
  3. On the Not Eligible for Electronic Filing screen, select Continue.
  4. On the Review Your Return screen, select Continue.
  5. On the Run State Review Again screen, select Done With Review.
  6. On the You’re Done with 2023 Iowa screen, select Done With States. 
  7. On the Let’s Make Sure Your Taxes are Correct screen, select Continue.
  8. On the Let’s Check These Entries screen, select Check Entries. No changes are being made to the Federal return. Select Continue.
  9. On the Not Eligible for Electronic Filing screen, select Continue.
  10. On the Run Smart Check Again screen, select Done.
  11. On the Your Amended Return Summary screen, select Continue
  12. On You're Done! Print and Mail Your Returns screen, follow the instructions to print and save your amended Iowa return, then select Done.
    NOTE: You are only amending your Iowa state tax return. The changes do not impact your Federal return, so please do not refile it.
  1. Once your tax return has been printed, you need to sign, date, and mail the amended return. The mailing address and filing instructions are included on the File by Mail Instructions for your 2023 Iowa Amended Tax Return.
    NOTE: Be sure to Print and Save the amended return for your records.

If you have questions, call 844-333-2161 (Monday–Friday, 7 AM to 7 PM CT) to speak with a specialist. Mention 2023 Iowa Tax Exempt Interest so they know what you’re calling about.

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