Amending 2020 Tax Return

[noblepa]

One day after mailing my 2020 form 1040 to the IRS, I discovered an error that caused me to overpay my tax liability by $264.

I misread my wife's form SSA-1099 and overstated her benefits received. Stupid mistake.

I went to IRS.GOV and found form 1040X, Amended Tax Return. Unfortunately, it appears to only be valid for tax years 2016-2019.

The check I wrote literally has not cleared the bank, yet. The IRS probably hasn't even received the return.

How can I amend my return? Do I have to wait until next year and file a 1040X for 2020?

I know I can wait, and the IRS will probably figure out my mistake, but that could take a year or two, if at all.

[jcolvin2]

https://www.irs.gov/pub/irs-pdf/f1040x.pdf

[noblepa]

https://www.irs.gov/pub/irs-pdf/f1040x.pdf

Thanks for your quick reply.

That's the form I downloaded, but it only has check boxes for tax years 2016-2019.

[NYGman]

Its been a while, but if the deadline has not yet expired, I believe you can file a superseding return, to replace the prior return, so as the time to file for 2020 has yet to elapse, do you really need to amend, when you can replace.

I will note, I have not prepped returns for 10+ years, but do recall filing a subsequent return in the partnership space at some point, and my experience is in Partnerships/corporation not individuals. But figure there may be an analogous concept for them.

[jcolvin2]

https://www.irs.gov/pub/irs-pdf/f1040x.pdf

Thanks for your quick reply.

That's the form I downloaded, but it only has check boxes for tax years 2016-2019.

The front page describes how to file a 2020 paper 1040-X.

An amended return for tax year 2019 or 2020 can also be filed on paper. As of February 2021, the most recent paper Form 1040-X is the January 2020 revision. If the taxpayer is amending their 2020 calendar year return, they should manually enter “2020” in the entry box next to “calendar year” on the line below the calendar year checkboxes. They should then complete the form as usual, using the most recent revision of Form 1040-X and the Instructions for Form 1040 for the tax year being amended.

[noblepa]

https://www.irs.gov/pub/irs-pdf/f1040x.pdf

Thanks for your quick reply.

That's the form I downloaded, but it only has check boxes for tax years 2016-2019.

The front page describes how to file a 2020 paper 1040-X.

An amended return for tax year 2019 or 2020 can also be filed on paper. As of February 2021, the most recent paper Form 1040-X is the January 2020 revision. If the taxpayer is amending their 2020 calendar year return, they should manually enter “2020” in the entry box next to “calendar year” on the line below the calendar year checkboxes. They should then complete the form as usual, using the most recent revision of Form 1040-X and the Instructions for Form 1040 for the tax year being amended.

Ah. I guess I didn't read the first page carefully enough.

Thanks again.

[Judge Roy Bean]

A word of warning - the IRS may completely ignore your amended return and you won't be able to reach someone to address the situation. I was told two years ago when the amended return was not processed that there were no longer any people assigned to handling a prior year's amended returns, only the most recent ones. My options were not clearly described other than to simply assume the amended return didn't exist but to file the next year's return as if it had been processed and see what happens.

Absurd as that sounds, it appears to have worked but I suspect there could be an audit in the future if the amount in question exceeds some mysterious threshold.

[noblepa]

A word of warning - the IRS may completely ignore your amended return and you won't be able to reach someone to address the situation. I was told two years ago when the amended return was not processed that there were no longer any people assigned to handling a prior year's amended returns, only the most recent ones. My options were not clearly described other than to simply assume the amended return didn't exist but to file the next year's return as if it had been processed and see what happens.

Absurd as that sounds, it appears to have worked but I suspect there could be an audit in the future if the amount in question exceeds some mysterious threshold.

Actually, I a little afraid of the opposite happening. If I file the amended return too soon after filing the return that the 1040x is amending, is there a chance that the amended return will be processed before the normal return?

Is there some magic time period which one must wait before filing an amended return? I can see the IRS saying "hey, we're busy processing 1040's for the 2020 tax year. We'll wait until well after April 15, and we've finished processing normal returns before we get around to doin the amended returns.

[Mider]

The IRS is still processing paper returns that were received back in October for 2019. There was reports in November that there were still semi truck loads of paper correspondence still sitting in Kansas City awaiting processing. If you mailed in your return it might be April before they process and it is possible that the 1040X would beat it, there is a special mail stop or there was last year.

[noblepa]

The IRS is still processing paper returns that were received back in October for 2019. There was reports in November that there were still semi truck loads of paper correspondence still sitting in Kansas City awaiting processing. If you mailed in your return it might be April before they process and it is possible that the 1040X would beat it, there is a special mail stop or there was last year.

I just checked my bank account.

Today is Friday. I mailed the return along with the check on Monday.

The check cleared the bank yesterday.

So, how come I'm still getting Christmas cards that were mailed in December?

[noblepa]

The IRS is still processing paper returns that were received back in October for 2019. There was reports in November that there were still semi truck loads of paper correspondence still sitting in Kansas City awaiting processing. If you mailed in your return it might be April before they process and it is possible that the 1040X would beat it, there is a special mail stop or there was last year.

I live in the Cleveland, Ohio area, so I mailed the return to Cincinnati.

The 1040x would be mailed to Ogden, Utah.

[The Observer]

The check cleared the bank yesterday.

So, how come I'm still getting Christmas cards that were mailed in December?

Unlike the processing of paper returns, the IRS views the deposit of checks as a priority. Even during the several US government shutdowns, the IRS would declare a certain amount of workers throughout its various offices as "necessary" just for the purpose of opening the received daily mail, finding the checks and starting the posting of the checks to the taxpayers' accounts and getting the checks forwarded to the campuses for deposit to the bank. Anything else that came with that check was forwarded to the appropriate unit, office or individual at a later time to be addressed when the government re-opened.

[noblepa]

The check cleared the bank yesterday.

So, how come I'm still getting Christmas cards that were mailed in December?

Unlike the processing of paper returns, the IRS views the deposit of checks as a priority. Even during the several US government shutdowns, the IRS would declare a certain amount of workers throughout its various offices as "necessary" just for the purpose of opening the received daily mail, finding the checks and starting the posting of the checks to the taxpayers' accounts and getting the checks forwarded to the campuses for deposit to the bank. Anything else that came with that check was forwarded to the appropriate unit, office or individual at a later time to be addressed when the government re-opened.

I know that the IRS deposits the checks immediately and then processes the return. Once the check hits the bank, everything is done electronically, so that part takes almost no time at all.

My point was a semi-joke about the post office. I literally received a Christmas card last week. Other mailings have been delayed, as well, but the USPS got my return to Cinicinnati in record time.

[Mider]

There was a story this morning on the news this morning that the IRS is delaying refunds for an unnamed reason. But yeah, they will cash those checks fast. The story about the pile of mail in Kansas City had one interesting tidbit, almost all of the mail had been cleansed of payments to the IRS.

[Number Six]

I filed my return electronically this year at the earliest opportunity; probably should have gone over the figures a little more, but as my brother in law said who was a Coopers and Lybrands accountant I'm a little fish and they probably won't waste time on me as a low income person. I was wondering why since I was low income I wasn't getting all my withholding back as the gross W2 income was about $15K and self employment was about net $3K? I may try amending later in a couple months with the free software. I would end up giving Treasury back some money. Also I had stock losses from years ago I did not claim, but did not keep the tax returns to determine which stock losses and how much I claimed then. Probably would try to get my IRS master file and could find out that way. Presumably FOIA requests for master files are still honored.

[Dark Optimist]

You can go to IRS.gov and request a copy of your wage and income transcript, and I think you can also request an electronic transcript of your return, going back up to 10 years. Go to irs.gov and click on "View your account."

I have used the wage and transcript service before with clients - they request the information and forward it to me. If you do not have an IRS account, you will need to set one up.

You may be out of luck on the capital losses - you can deduct up to $3,000 of capital losses in excess of capital gains per year against other income. So if the loss was less than 3k, it would have been deductible in the year of loss.

[Number Six]

I had some losses in excess of $3000 which can be carried forward indefinitely: https://www.investopedia.com/terms/c/ca ... ryover.asp

[Arthur Rubin]

I had some losses in excess of $3000 which can be carried forward indefinitely: https://www.investopedia.com/terms/c/ca ... ryover.asp

But (up to, and not at your election) $3,000 is used up in each intermediate year, even if closed.

[Gregg]

The check cleared the bank yesterday.

So, how come I'm still getting Christmas cards that were mailed in December?

Unlike the processing of paper returns, the IRS views the deposit of checks as a priority. Even during the several US government shutdowns, the IRS would declare a certain amount of workers throughout its various offices as "necessary" just for the purpose of opening the received daily mail, finding the checks and starting the posting of the checks to the taxpayers' accounts and getting the checks forwarded to the campuses for deposit to the bank. Anything else that came with that check was forwarded to the appropriate unit, office or individual at a later time to be addressed when the government re-opened.

I know that the IRS deposits the checks immediately and then processes the return. Once the check hits the bank, everything is done electronically, so that part takes almost no time at all.

My point was a semi-joke about the post office. I literally received a Christmas card last week. Other mailings have been delayed, as well, but the USPS got my return to Cinicinnati in record time.

IRS locations that get taxpayer mail have their own zip codes, so its not impossible to think those zip codes have special high priority processing, too. If nothing else, once that mail gets to a certain place, the remaining journey is kind of like an express elevator.

[Gregg]

The check cleared the bank yesterday.

So, how come I'm still getting Christmas cards that were mailed in December?

Unlike the processing of paper returns, the IRS views the deposit of checks as a priority. Even during the several US government shutdowns, the IRS would declare a certain amount of workers throughout its various offices as "necessary" just for the purpose of opening the received daily mail, finding the checks and starting the posting of the checks to the taxpayers' accounts and getting the checks forwarded to the campuses for deposit to the bank. Anything else that came with that check was forwarded to the appropriate unit, office or individual at a later time to be addressed when the government re-opened.

I also believe that machinery exists that can detect the presence of a check by magnetic ink, but not sure how many checks still have it. How many checks are printed on home computers now?