Should/Can I file a tax amendment?

[ir0nhide]

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.

[jfoxcpacfp]

Sure you can. You have 3 years from the date of filing or the original due date, whichever is later (not including extensions).

[spiritrider]

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.

[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

[jfoxcpacfp]

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.