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10979: 1040X - FAQs and Troubleshooting


1040 Individual

Choose from the following frequent topics about amending an individual return:

 

Form 1040-X Payment Methods

For Drake20 and prior, Form 1040-X can only be paper-filed at this time. Form 1040-X can be e-filed for the current year and two prior years. Payment methods vary depending on if Form 1040-X is being e-filed or paper-filed. 

See Related Links below for details on creating and e-filing Form 1040-X. 

The IRS does not direct the use of a voucher by taxpayers paper-filing an amended individual return. The payment can be included with the paper Form 1040-X and Form 1040-V is not needed. See the 1040-X Instructions for other payment methods for a balance due.

If you are e-filing Form 1040-X, then you can use the PMT screen to arrange a payment with the e-filed return and Form 1040-V is not needed. If the 1040-X is being e-filed, but the payment is being sent by mail, then Form 1040-V will be produced but should be sent to the address in the 1040-V Instructions.

Note: In Drake19 and future, if you are paper-filing Form 1040-X with a balance due, go to the COMM screen and select the Paper checkbox beside Federal Amended near the bottom of the screen. This will change the address on the Filing Instructions and Letter. 

I am filing multiple years of Form 1040-X for a client. Should I send them all together? What should I attach?

According to IRS Tax Topic 308, you should file a separate amended return for each year you are amending and mail each in a separate envelope. Generally a 1040-X is e-fileable for the current and two prior years, and e-filing is recommended if the return is eligible. For more information, see also the Instructions for Form 1040-X.

Attach any forms or schedules that are being changed as a result of the amendment, including:

  1. A copy of any Forms W-2, W-2c, and 2439 supporting changes made on the return,
  2. A copy of an Form W-2G and 1099-R that support changes made on the return, but only if tax was withheld,
  3. A copy of any Forms 1042S, SSA-1042S, RRB-1042S, and 8288-A that support changes made on the return,
  4. Any Form 8805 that supports changes made on the return.

If you owe tax, enclose but do not attach your check or money order in the envelope with the amended return.

Where do I mail my 1040-X?

The addresses for amended returns are listed under Where to File in the Instructions for Form 1040-X for the applicable year. 

How do I change the filing status in a return or amended return?

Enter the filing status of a return on screen 1 Name and Address of the General tab in data entry. Use the drop list at the top-left of the screen to select from possible entries.

To summarize: use the X screen before changing the filing status on screen 1. Note the warning that appears on page 1 of Form 1040-X: "You cannot change your filing status from joint to separate returns after the due date."

If I file an amended individual return for a prior year do I have to use the 1040-X form that is in current software?

The IRS will accept the older version of From 1040-X that that prior-year Drake Tax produces.

How do I enter a direct deposit on Form 1040-X?

In Drake21 and future, direct deposit of a refund from Form 1040-X can be arranged through the DD screen. Be sure to check the 1040-X box on the DD screen. This option is only available if the return is e-filed; if paper-filing Form 1040-X, the refund will be issued via paper check. 

  • The change to Drake21 was not made until February 16, 2023 due to IRS not enabling direct deposit for amended returns until that time. If you are filing a 1040-X through Drake21, the Amended Letter will not display any information about direct deposit as changes to global letter templates are not made after the January release. You can edit the letter template under the Communications editor or provide the client with the Filing Instructions page instead. Drake22 Amended letters do have a section for direct deposit, when selected. 

In prior years, according to 1040-X instructions, any refund received on an amended return could not be deposited directly to the taxpayer’s bank account. Any amount to be refunded is mailed to the taxpayer’s address from the Internal Revenue Service via a check. 

No bank products are available for 1040-X returns.

For more information review the 1040-X Instructions.

How does the taxpayer receive a new refund amount from the IRS if an amended return was filed? 

IRS advises the taxpayer in the Instructions for Form 1040-X:

"Any additional refund you are entitled to on Form 1040-X will be sent separately from any refund you have not yet received from your original return."

Why don’t my dependents that are entered on the 1040 show on the 1040-X, page 2?

Dependents do not appear on the 1040-X unless you change exemptions on the underlying return after making entries on the X screen. The Instructions for Form 1040-X indicate you should complete lines 24 - 30 only if you are changing exemptions.

See Related Links below for the steps to add a dependent on 1040-X.

I amended a 1040 return to add deductions, but the tax is the same. Why?

The return may have calculated a Form 6251 Alternative Minimum Tax. Certain Schedule A deductions get added back into income to figure the AMT, so if all of the additional deductions were of the type that get added back, there would be no reduction in tax.

Will my Amended Return be processed faster when filed electronically?

Currently, the normal processing time of up to 16 weeks applies to both paper filed and electronically filed Amended Returns.

What is the best and fastest way for me to get information about an amended return?

Use Where's My Amended Return? or call the automated tool-free number 866-464-2050.  The application has the most up-to-date information available.

Can I attach a PDF to an amended return? 

Yes, you can attach a PDF to a 1040-X return by using the PDF screen. 

Notes and Common Issues

  • Starting with Drake21, an amended return can be e-filed even if the original return was paper-filed.
  • You may see reject code F1040X-001 if any of the following are conditions are true. This reject requires the appropriate amended return (either 1040-X or an amended EIP return) to be paper-filed.
    • The filing status on the original return differs from the amended return. 
    • The primary and/or spouse SSN on the amended return do not match the original return. 
    • The tax type of the original return is anything other than 1040 or 1040-SR.
  • If needed, Form 1040-X can be e-filed up to three times per taxpayer. If a fourth correction is required, it will have to be paper-filed.
    • Note that this is based on the IRS e-file database.
    • The IRS will reject a fourth filing with reject code F1040X-032 that states:
      • You have exceeded the limit of amended returns that can be filed electronically. Please submit a paper amended tax return. To find a proper mailing address, go to irs.gov/file.
  • EIP returns cannot be amended on paper or through e-file using From 1040-X. To amend an EIP return, see Related Links below.
  • The direct debit information supplied on the PMT screen cannot be modified after a return is accepted. An amended return should not be used to change payment information. 
    • After acceptance of an individual or business return, your only option is to cancel the payment. The IRS advises:
  • "In the event Treasury causes an incorrect amount of funds to be withdrawn from a bank account, Treasury will return any improperly transferred funds.
  • Once your return is accepted, information pertaining to your payment, such as account information, payment date, or amount, cannot be changed. If changes are needed, the only option is to cancel the payment and choose another payment method.
  • Call IRS e-file Payment Services 24/7 at 1 (888) 353-4537 to inquire about or cancel your payment, but please wait 7 to 10 days after your return was accepted before calling.
  • Cancellation requests must be received no later than 11:59 p.m. ET two business days prior to the scheduled payment date.
  • If a payment is returned by your financial institution (e.g., due to insufficient funds, incorrect account information, closed account, etc.) the IRS will mail a Letter 4870 to the address we have on file for you, explaining why the payment could not be processed, and providing alternate payment options.
  • In the event your financial institution is unable to process your payment request, you will be responsible for making other payment arrangements, and for any penalties and interest incurred.
  • Contact your financial institution immediately if there is an error in the amount withdrawn."

Note: For more information, please see the IRS link Pay Taxes by Electronic Funds Withdrawal. You can also watch a video demonstration here: Electronic Funds Withdrawal.

How is the tax on line 6 of Form 1040-X calculated? What do the literals printed on the line mean?

The tax that shows on Form 1040-X, line 6 is figured by calculating the tax on the taxable income shown on line 5, plus any additional taxes. The tax on Form 1040-X, line 6 is not always the same as what is shown on the corrected Form 1040.

Per the 1040-X Instructions

"Figure the tax on your taxable income shown on line 5, column C. Generally, you will use the method(s) you used to figure the tax on your original return. However, you may need to change to a different method if, for example, you amend your return to include or change the amount of certain types of income, such as capital gains or qualified dividends.

See the instructions for the income tax return you are amending to find the appropriate method(s), tax table, and worksheet, if necessary. Indicate the method(s) you used to figure the tax entered on line 6, as shown in the chart [in the instructions]."

If the amount on line 6 of the 1040-X does not match the amount shown on the corrected 1040, line 16, check for the following forms showing additional tax or repayments:

  • Form 4972
  • Form 8814
  • Education Credit Recapture
  • Form 6251
  • Form 8962

The sum of the tax on the above forms carries to the 1040-X, line 6.  

The tax on the corrected 1040 can be figured by one of several methods. Most commonly, tax is figured by the tax tables, however, other methods may be used. See "Tax Different than Tax Table" in Related Links below for more information. The tax calculation method used must be recorded on Form 1040-X. The 1040-X instructions explain the literals that appear on the form:

Method used to figure the corrected tax using Recorded literal for line 6
Tax Table Table
Tax Computation Worksheet TCW
Schedule D Tax Worksheet Sch D
Schedule J (Form 1040) Sch J
Qualified Dividends and Capital Gain Tax Worksheet QDCGTW
Foreign Earned Income Tax Worksheet FEITW
Form 8615, Tax for Certain Children Who Have Unearned Income F8615

If there was an overpayment on the original return that was applied to estimates, how does that impact an amount due on the amended return? Can I reverse that election? 

If the original return had an overpayment, but the amended return has an amount due, the original election to apply the overpayment to the next year's estimates cannot be changed. Any amount due on Form 1040-X would need to be paid by check, money order, or electronically. Per the Instructions: "If you elected to apply any part of an overpayment on your original return to your next year's estimated tax, you can’t reverse that election on your amended return."


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