16841: 1040 - Generating an Amended Return (Drake19 and future)

The following information applies to Drake19 and future. For information about amending a 2018 or prior return, see Related Links below.

Note that 2019 and 2020 regular or amended returns can no longer be e-filed. (Only 2021, 2022, and 2023 forms are eligible for e-file.)

A 1040-X is used for a number of purposes, including the correction of previously-filed Forms 1040 and 1040-SR; see the 1040-X Instructions for details. While Form 1040-NR is amended with the use of Form 1040-X, all Forms 1040-X being filed for a 1040-NR must be paper-filed before Drake22. Starting in Drake22, some 1040-X forms for a 1040-NR may be e-filed. 

The 1040-X displays both original return values and the correct "amended" values. To get original return values to the 1040-X, you can enter them directly on the X screen, or you can auto-fill them from an original return created within Drake Tax using the X screen auto-fill function. In order to get the corrected "amended" values to the 1040-X, leave the X screen, and make necessary corrections within data entry. 

Before beginning:

• Read the 1040-X instructions and state amended return instructions (if amending a state return).
• If the return you want to amend exists in Drake Tax, archive or back it up to avoid losing previously-entered data. (Beginning with Drake Tax 2022, auto-filling screen X also archives the return before changes are made.)
  

In a 1040-X:

• "Column A. Original Amount" is the original return data as filed.
• "Column B. Net Change" is the calculated difference between columns A and C
• "Column C. Correct Amount" is your correct (amended) data.

The X screen can auto-fill Column A or you can enter the Column A values directly on the X screen. After completing the X screen, correct the return in data entry. Your corrected values flow to Column C on the 1040-X, and the calculated net change appears in column B.

See Related Links for FAQs, Notes, Common Issues, and Rejects. 

Sections below:

• Amending a federal return that you originally prepared in Drake Tax
• Amending a federal return that you did NOT originally prepare
• Amending both a state and federal return
• Amend a previously amended return (second or third amendment)

Amending a federal return that you originally prepared in Drake Tax

1. Open the original return you want to amend.
2. Before making any corrections to the return, open the X screen and click Yes to auto-fill the original values. (The amounts that auto-fill on the X screen appear in Column A on Form 1040-X.)
3. Complete any of the necessary fields on the lower half of the X screen.
4. Go to View/Print mode and review the 1040-X. Identify where amending changes should be made.
5. Correct the original return accordingly in data entry, then return to View/Print mode to confirm the results on the 1040-X.
6. Form 1040-X is treated as an attachment to the corrected Form 1040. Verify that both Form 1040-X and the entire Form 1040 that now shows in view mode is correct. Form 1040 along with all schedules, forms, and PDFs that are generated or attached are transmitted with Form 1040-X. 
7. If the completed 1040-X shows that the taxpayer has an additional tax liability, you can complete the PMT screen with the applicable 1040-X box marked to allow automatic withdrawal of that amount due. 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 along with a check or money order. Alternatively, the taxpayer can go online to IRS.gov/payments or 1040paytax.com to arrange a payment. 
   • If the taxpayer owes and wants to file Form 9465, Installment Agreement Request, complete the 9465 screen with the check box Installment Agreement is for balance due on 1040-X (near the top right) marked. Form 9465 will be e-filed with Form 1040-X. See Related Links below for details. 
   • If the completed 1040-X shows that the taxpayer will receive a refund, see KB 10979 for refund options.
   • Late filing penalties (and possibly late payment penalties) must be manually calculated and entered on screen LATE.
8. Go to the EF screen and check the box 1040-X to indicate that the 1040-X will be e-filed.
   • If you are preparing a state amended return that is able to be e-filed, select in the drop list on the right-hand side. See Amending both a state and federal return below. Otherwise, click Do NOT send any states. 
9. Go to the PIN screen and ensure that:
   • The applicable 1040-X box is selected (prevents EF Message 2061).
   • The PIN signature date is updated, reflecting the date Form 1040-X was completed.
   • The taxpayers' PIN signatures are entered before transmitting Form 1040-X.
10. Calculate the return to verify that you have a green check mark for Form 1040-X.
    • Note that there will still be a line for Form 1040 that will show the status of accepted. 
11. Exit the return and go to EF > Select Returns for EF. Choose the return and click Continue. 
12. Go to EF > Transmit/Receive. Verify the selection and click Send/Receive. 
13. The 1040-X will receive a pending ack, followed by either an accepted or rejected ack, just like other returns. Go back to EF > Transmit/Receive > Acks only to pick up the IRS ack.  

Amending a federal return that you did NOT originally prepare

This situation is where a taxpayer had someone else prepare the return (or prepared it themselves) but now needs to file an amended return. Since the incorrect return was not prepared in Drake Tax, a new, corrected return must be created and filed.

1. Create a return for the taxpayer, completing the name and address screen and entering basic information.
2. Open screen X and enter the amounts from the original, incorrect 1040 NOT prepared by you. (The amounts that you enter on screen X appear in Column A on Form 1040-X.) Drake Tax recommends this simplified approach to save you time that would be otherwise spent attempting to produce incorrect calculations that mirror the original, incorrect return.
3. From this point, use the data entry screens you are familiar with to prepare the complete return (as it should have been filed to begin with). 
4. Calculate and review the return in View/Print mode.
   
5. Form 1040-X is treated as an attachment to the corrected Form 1040. Verify that both Form 1040-X and the entire Form 1040 that now shows in view mode is correct. Form 1040 along with all schedules, forms, and PDFs that are generated or attached are transmitted with Form 1040-X. 
6. If the completed 1040-X shows that the taxpayer has an additional tax liability, you can complete the PMT screen with the applicable 1040-X box marked to allow automatic withdrawal of that amount due. 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 along with a check or money order. Alternatively, the taxpayer can go online to IRS.gov/payments or 1040paytax.com to arrange a payment. 
   • If the taxpayer owes and wants to file Form 9465, Installment Agreement Request, complete the 9465 screen with the check box Installment Agreement is for balance due on 1040-X (near the top right) marked. Form 9465 will be e-filed with Form 1040-X. See Related Links below for details. 
   • If the completed 1040-X shows that the taxpayer will receive a refund, see KB 10979 for refund options.
   • Late filing penalties (and possibly late payment penalties) must be manually calculated and entered on screen LATE.
7. Go to the EF screen and check the box 1040-X to indicate that the 1040-X will be e-filed.
   • If you are preparing a state amended return that is able to be e-filed, select in the drop list on the right-hand side. See Amending both a state and federal return below. Otherwise, click Do NOT send any states. 
8. Go to the PIN screen and ensure that:
   • The applicable 1040-X box is selected (prevents EF Message 2061).
   • The PIN signature date is updated, reflecting the date Form 1040-X was completed.
   • The taxpayers' PIN signatures are entered before transmitting Form 1040-X.
9. Calculate the return to verify that you have a green check mark for Form 1040-X.
   • Note that there will still be a line for Form 1040 that will show the status of accepted. 
10. Exit the return and go to EF > Select Returns for EF. Choose the return and click Continue. 
11. Go to EF > Transmit/Receive. Verify the selection and click Send/Receive. 
12. The 1040-X will receive a pending ack, followed by either an accepted or rejected ack, just like other returns. Go back to EF > Transmit/Receive > Acks only to pick up the IRS ack. 

Amending both a state and federal return

State amended returns vary. If there is a state X screen that requires original state data and the original state return exists in Drake, start by auto-filling the state X screen to capture original state data before you modify data entry on either the federal or state screens (the original state return may change if you correct the federal return before completing the state X screen). Complete the federal amended return, and then return to complete the state X screen and make any needed corrections on the state return.

Only certain state amended returns are eligible for e-filing; see Related Links below for details. 

If the previously-amended return exists in Drake Tax:

• Archive or back it up before proceeding to avoid losing previously-entered data (see Related Links below for more information on these processes). 
• To amend it, begin by opening and deleting the X screen.
• Now treat the previously-amended return as your original.
• Proceed as in an ordinary amendment, following the steps above.
• On the EF screen, select the box indicating which amended return number this is: 
  • 1040-X - 2nd amended return
  • 1040-X - 3rd amended return

If neither the previously-amended return, nor the 1040-X exist in Drake Tax,

• Create the amended return, or create a basic return by entering demographics,
• Then proceed as in an ordinary amendment, following the steps above.