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:
- On screen 1, uncheck Economic Impact Payment (EIP) ONLY.
- 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.
- Complete any other data entry screens as needed.
- The COMM screen can be used to generate paper-filing instructions and display the paper-filing information on the results letter.
- Print, sign, and paper-file the return.
- 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.