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Should/Can I file a tax amendment?

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  • Should/Can I file a tax amendment?

    Hello...While filling out my 2020 tax returns, I realized that I had incorrectly reported the cost basis of some stock sales I had on my 2019 returns. Basically, I did not take into account the adjusted cost basis from eTrade's supplemental form and eventually overpaid taxes on the capital gains.

    My question is if I can file a tax amendment for this particular scenario? This is the first time I did something like this and want to make sure I can do that.

  • #2
    Sure you can. You have 3 years from the date of filing or the original due date, whichever is later (not including extensions).
    My passion is protecting clients and others from predatory and ignorant advisors 270-247-6087 for CPA clients (we are Flat Fee for both CPA & Fee-Only Financial Planning)
    Johanna Fox, CPA, CFP is affiliated with Wrenne Financial for financial planning clients

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    • #3
      When did you file?

      Personally, when I have had to file an amended return in the same year. I always waited until well after the IRS has processed the return. Given current circumstances, even then I would wait until at least the summer.

      Note: You can now e-file amended 1040 tax returns using tax software. It is only available for 2019 and 2020 returns that were themselves e-filed.

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      • #4
        This is for the 2019 tax return that I had filed last year. I had withheld less so I had to pay taxes during filing.

        While filling out my 2020 returns, I realized I made a mistake in my 2019 one and hence I want to amend that.


        One more question - Does it matter if I file my 2020 tax returns first and then file the amendment? I am hoping there is no order in that

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        • #5
          Originally posted by ir0nhide
          This is for the 2019 tax return that I had filed last year. I had withheld less so I had to pay taxes during filing.

          While filling out my 2020 returns, I realized I made a mistake in my 2019 one and hence I want to amend that.


          One more question - Does it matter if I file my 2020 tax returns first and then file the amendment? I am hoping there is no order in that
          No, the order of amending 2019 and filing 2020 doesn’t matter. At least it shouldn’t.
          My passion is protecting clients and others from predatory and ignorant advisors 270-247-6087 for CPA clients (we are Flat Fee for both CPA & Fee-Only Financial Planning)
          Johanna Fox, CPA, CFP is affiliated with Wrenne Financial for financial planning clients

          Comment

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