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16797: EIP - Amending to File Form 1040 or 1040-SR


1040 Individual Data Entry

I filed an EIP return for a taxpayer, but they have a filing requirement for 2019. How do I file their regular Form 1040?

 

If the taxpayer filed an EIP (simple) return, and is now required* to file a regular return for tax year 2019, they must paper-file their completed Form 1040/1040-SR with the literal "Amended EIP Return" printed at the top of the form.

Form 1040-X should not be used to amend an EIP filing. If the X screen has been created on an EIP return, delete that screen before continuing. Note 727 alerts you to this requirement when the X screen has been completed. The amended EIP return cannot be e-filed.

In Drake Tax, to prepare the amended EIP return as a 1040, follow these steps:

  1. On screen 1, uncheck Economic Impact Payment (EIP) ONLY
  2. On the PRNT screen, check the box Original return was an EIP return.
    • This will print the literal "Amended EIP Return" at the top of Form 1040/1040-SR.
  3. Complete any other data entry screens as needed. 
  4. The COMM screen can be used to generate paper-filing instructions and display the paper-filing information on the results letter. 
  5. Print, sign, and paper-file the return.

Notes: 

  • The return must be postmarked by July 15, 2020 to prevent penalties and interest from accruing.
  • Red message 0010 will also be generated to prevent e-filing. This message cannot be cleared as the IRS is requiring any Form 1040/1040-SR filed after an EIP return to be paper-filed. 

If the taxpayer filed an EIP return outside of Drake Tax, and you attempt to e-file a regular return, the return will be rejected with code R0000-932-02. Form 1040 cannot be e-filed if an EIP return was already filed for the taxpayer. You must paper-file it by using the steps above. 

For more information about Economic Impact Payment returns, the stimulus payments, or reject R0000-932-02, see Related Links below. The IRS' EIP page provides a list of FAQs about stimulus payments and the simple returns.

*A taxpayer may choose to file a regular tax return, even if not required to do so, for a variety of reasons. See KB 14140 for details on general filing requirements and other reasons that a taxpayer may need to file a regular 1040 or 1040-SR return. 


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