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February 18, 2025
Question

Removing income on Amended Return

  • February 18, 2025
  • 1 reply
  • 0 views

I need to amend a few returns because of the passage of HR 5863 - Federal Disaster Tax Relief Act of 2023. The legal award I claimed as income is now retroactively tax exempt. Do I simply delete the amount I entered into the misc income data field in the addition column, or do I enter an identical amount in the data field in the subtraction column so the two amounts off set.

    1 reply

    KrisD15
    February 18, 2025

    I would enter a negating entry to help explain your stance for eliminating the income.

     

    • Go to:
      Wages & Income
      Less Common Income
      Miscellaneous Income, 1099-A, 1099-C    
      Other reportable income    START

      Type " HR 5863" or something similar for the Description 
      Enter the amount as AS A NEGATIVE NUMBER  (put a minus sign in front (-) 
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    fanfare
    Employee
    February 18, 2025

    removing an addition by changing it to -0- is more correct.

    Either way the difference will appear in Col (B) of Federal1040-X

     

     

    1040-X Explanation is where you tell the IRS why you are filing for a refund.

    are you amending a state tax return?

    the same principle applies.

    @KELC