How do I amend my 2024 return to include distributions exceeding stock basis?
Due to an error, some customers may have understated their capital gains on their federal and, if applicable, state tax returns.
If we notified you, we recommend you submit an amended federal and, if applicable, state tax returns as soon as possible to avoid additional penalties and interest on the unpaid balance.
Please select your version of TurboTax below and follow the instructions.
TurboTax Online
To correct your return, please follow the steps below.
Use TurboTax to amend your federal tax return, and, if applicable, state tax return.
- Visit the Wages & Income section and select Investment Income.
- Select Start by the topic Stocks, Cryptocurrency, Mutual Funds, Bonds, Other.
Enter the excess distribution amount as a stock transaction resulting in a capital gain.
NOTE: You will need your Form 7203 for the S-corporation stock basis (line 5) and distribution (line 6). The excess distribution to be reported as a capital gain is your total distributions minus your S-corporation basis.
Enter “TO REPORT CAPITAL GAINS IN EXCESS OF STOCK BASIS FROM S- CORP” as the reason for amending.
Continue through the state amend, if applicable.
Follow the instructions provided by TurboTax to efile the amended federal tax return and pay the balance due, if applicable.
If you reside in California, Colorado, Georgia, Michigan, Montana, New York, North Carolina, Oklahoma, Pennsylvania, South Carolina, Vermont or Wisconsin the state amended return can be efiled. All other states will need to be printed, dated, signed and mailed. Follow the TurboTax instructions concerning balance due payments.
Save a copy of your amended tax returns for your records.
TurboTax CD/Download
To correct your return, please follow the steps below.
Use TurboTax to amend your federal tax return, and, if applicable, state tax return.
- Visit the Wages & Income section and select Investment Income.
- Select Start by the topic Stocks, Cryptocurrency, Mutual Funds, Bonds, Other.
Enter the excess distribution amount as a stock transaction resulting in a capital gain.
NOTE: You will need your Form 7203 for the S-corporation stock basis (line 5) and distribution (line 6). The excess distribution to be reported as a capital gain is your total distributions minus your S-corporation basis.
Enter “TO REPORT CAPITAL GAINS IN EXCESS OF STOCK BASIS FROM S- CORP” as the reason for amending.
Continue through the state amend, if applicable.
Follow the instructions provided by TurboTax to efile the amended federal tax return and pay the balance due, if applicable.
If you reside in California, Colorado, Georgia, Michigan, Montana, New York, North Carolina, Oklahoma, Pennsylvania, South Carolina, Vermont or Wisconsin the state amended return can be efiled. All other states will need to be printed, dated, signed and mailed. Follow the TurboTax instructions concerning balance due payments.
Save a copy of your amended tax returns for your records.
If you have questions, call 844-333-2161 (Monday–Friday, 5 AM to 5 PM PT) to speak with an expert. Mention 2024 Form 7203 Distributions Exceeded Stock Basis so they know what you’re calling about.
