Taxpayer is facing the question of amending their 2018 returns
due to an error, the error having been entering a value for
Schedule 1, Line 28 (Adjustment to Income - Qualified Plan Contributions),
when the correct value is zero.
As filed, there is no value entered on Line 9, form 1040 (Qualified
Business Income Deduction), and Line 10 (Taxable Income) is zero.
After correction, Line 10 will still be zero, but only after including
the appropriate non-zero value on Line 9.
(1) Is it expected that the tax software (which was Lacerte) omits the
value on Line 9, based on the Taxable Income being zero regardless?
(2) IRS instructions for 2018 1040X state:
"If you didn't claim the correct filing status or you need to change your income, deductions, or credits, you should file an amended or corrected return using Form 1040-X."
In this case, there are no changes to filing status or credits. The taxable
income and Total Income are unchanged, but the AGI has changed. Schedule A
has the exact same deductions as input, but the total amount of itemized deductions is a bit lower due to the 7.5% medical floor and the higher AGI.
Is amending the Federal return required?
(3) Is amending the Federal return desirable, even if not required?
The EA who prepared the original return has since retired.
- posted 8 months ago