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16841: 1040 - Generating an Amended Return (Drake19)


1040 Individual Data Entry

How do I amend a 1040 return? How do I amend a previously amended return? 

 

The following information applies to Drake19. For information about amending a 2018 or prior return, see Related Links below.
Patch 60, released on August 5, 2020, enables Form 1040-X e-filing for 2019 individual returns. 

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, a Form 1040-X being filed for a 1040-NR must be paper-filed at this time. 

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.

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.

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.
    • Go to View mode and review the 1040-X. Identify where amending changes should be made.
    • Correct the original return accordingly in Data Entry, then return to View/Print Mode to confirm the results on the 1040-X.
    • 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. 
    • If the completed 1040-X shows that the taxpayer has an additional tax liability, you can complete the PMT screen with the 1040X box checked to allow automatic withdrawal of that amount due. Form 1040-V will be produced to allow payment via 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 checkbox 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, the IRS will mail them a check. The DD screen cannot be used to allow direct deposit of a refund from Form 1040-X.
    • Go to the EF screen and check the box 1040X to indicate that the 1040-X will be e-filed.
      • If you are preparing a state amendment, and it is e-fileable, choose that 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
    • Go to the PIN screen and ensure that:
      • the 1040X box is selected (prevents EF message 2061).
      • Enter the appropriate signature date as it relates to Form 1040-X.
      • The taxpayer(s) must also sign Form 8879 before you transmit Form 1040-X.
    • 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. 
    • Exit the return and go to EF > Select Returns for EF. Choose the return and click Continue
    • Go to EF > Transmit/Receive. Verify the selection and click Send/Receive
    • The 1040-X will receive a pending ack and then either an acceptance or rejection just like other returns. Go back to EF > Transmit/Receive > Acks only to pick up the IRS ack. 

    Notes: 

    • Form 1040-X cannot be e-filed unless the original Form 1040 was also e-filed. The original filing does not have to have been completed through your office, but must have been e-filed and accepted through an approved IRS provider. 
    • If the original Form 1040 was paper-filed, the Form 1040-X must also be paper-filed.
    • A refund will be sent via paper-check. Direct Deposit is not available for 1040-X returns. 
    • No bank products are available for 1040-X returns. 
    • You can attach a PDF to the amended return, if needed, by using the PDF screen. 
    • You may see reject code F1040X-001 if any of the following are conditions are true. This reject requires the appropriate amended return (either 1040-X or an amended EIP return) to be paper-filed.
      • The filing status on the original return differs from the amended return. 
      • The original return was not e-filed and accepted. The original return must have been e-filed and accepted.
      • The primary and/or spouse SSN on the amended return do not match the original return. 
      • The tax type of the original return is anything other than 1040 or 1040-SR.
    • If needed, Form 1040-X can be e-filed up to three times per taxpayer. If a fourth correction is required, it will have to be paper-filed.
      • Note that this is based on the IRS e-file database.
      • The IRS will reject a fourth filing with reject code F1040X-032 that states:
        • You have exceeded the limit of amended returns that can be filed electronically. Please submit a paper amended tax return. To find a proper mailing address, go to irs.gov/file.
    • EIP returns cannot be amended on paper or through e-file using From 1040-X. To amend an EIP return, see Related Links below.

    Amending a federal return that you did NOT originally prepare.

    1. Create the return for the taxpayer.
    2. Open the X screen and manually enter the amounts from the original 1040 NOT prepared by you. (The amounts that you enter on the X screen will appear in Column A on Form 1040-X.)
    3. Complete the entire return as if you were preparing it originally, but include the corrections which made it necessary to file an amended return.
    4. 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. 
    5. If the completed 1040-X shows that the taxpayer has an additional tax liability, you can complete the PMT screen with the 1040X box checked to allow automatic withdrawal of that amount due. Form 1040-V will be produced to allow payment via 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 checkbox Installment Agreement is for balance due on 1040-X (near the top right) marked. Form 9465 will be e-filed with Form 1040-X. 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, the IRS will mail them a check. The DD screen cannot be used to allow direct deposit of a refund from Form 1040-X.
    6. Go to the EF screen and check the box 1040X to indicate that the 1040-X will be e-filed.
      • If you are preparing a state amendment, and it is e-fileable, choose that 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
    7. Go to the PIN screen and ensure that:
      • the 1040X box is selected (prevents EF message 2061).
      • Enter the appropriate signature date as it relates to Form 1040-X.
      • The taxpayer(s) must also sign Form 8879 before you transmit Form 1040-X.
    8. Calculate the return to verify that you have a green check mark for Form 1040-X. 
    9. Exit the return and go to EF > Select Returns for EF. Choose the return and click Continue
    10. Go to EF > Transmit/Receive. Verify the selection and click Send/Receive
    11. The 1040-X will receive a pending ack and then either an acceptance or rejection just like other returns. Go back to EF > Transmit/Receive > Acks only to pick up the IRS ack. 

    Notes: 

    • Form 1040-X cannot be e-filed unless the original Form 1040 was also e-filed. The original filing does not have to have been completed through your office, but must have been e-filed and accepted through an approved IRS provider. 
    • If the original Form 1040 was paper-filed, the Form 1040-X must also be paper-filed.
    • A refund will be sent via paper-check. Direct Deposit is not available for 1040-X returns. 
    • No bank products are available for 1040-X returns. 
    • You can attach a PDF to the amended return, if needed, by using the PDF screen. 
    • You may see reject code F1040X-001 if any of the following are conditions are true. This reject requires the appropriate amended return (either 1040-X or an amended EIP return) to be paper-filed.
      • The filing status on the original return differs from the amended return. 
      • The original return was not e-filed and accepted. The original return must have been e-filed and accepted. 
      • The primary and/or spouse SSN on the amended return do not match the original return. 
      • The tax type of the original return is anything other than 1040 or 1040-SR.
    • If needed, Form 1040-X can be e-filed up to three times per taxpayer. If a fourth correction is required, it will have to be paper-filed.
      • Note that this is based on the IRS e-file database.
      • The IRS will reject a fourth filing with reject code F1040X-032 that states:
        • You have exceeded the limit of amended returns that can be filed electronically. Please submit a paper amended tax return. To find a proper mailing address, go to irs.gov/file.
    • EIP returns cannot be amended on paper or through e-file using From 1040-X. To amend an EIP return, see Related Links below.

    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, and can be selected on the EF screen drop list:

    • AR AMD - Arkansas 1000/1000NR Amended e-file
    • CA - applies to the California Amended return, if present
    • CO AMD - Colorado Amended
    • DC AMD - District of Columbia Amended
    • GA AMD - Georgia Amended
    • MD AMD - Maryland Amended
    • KC108AMD - Kansas City RD 108 Business Amended
    • KC109AMD - Kansas City RD 109 Wage Earner Amended
    • MS AMD - Mississippi Amended
    • NY - applies to the New York state Amended return IT-201-X or IT 203-X, if present
    • NJ AMD - New Jersey Amended return
    • NC AMD - North Carolina Amended
    • OR - applies to the Oregon Amended return, if present
    • PA AMD - Pennsylvania Amended
    • RI AMD - Rhode Island Amended
    • SC AMD - South Carolina Amended
    • TN AMD - Tennessee 250 interest and dividends Amended
    • TN170AMD - Tennessee 170 Franchise and Excise Amended
    • UT AMD - Utah Amended
    • VA - applies to the Virginia amended return, if present
    • VT AMD - Vermont Amended

    Amend a previously amended return

    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 screen.
    • Now treat the previously-amended return as your original.
    • Proceed as in an ordinary amendment, following the steps above.

    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.

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