Amending 2007 Federal Taxes...

[SAHM]

I reside in a state that does not require you to file state taxes, so my questions are on filing federal taxes.

I have completed amending my 2007 Form 1040X federal tax return and I have completed my 2008 Form 1040 federal tax return but have not yet filed either.

I have 2 questions pertaining to my 2008 tax return before I file both returns...

1. Turbo Tax asks for last year's AGI. However, let's put the software issue to the side... Let's say that the IRS did need this number for verification purposes, it's still a good question. If indeed, you needed this number on the form and I do not believe you do... Since I am amending 2007, do I enter the AGI from the "original 2007 return" or from the "Amended 2007 return?"

2. I will be taking the itemized deductions, not the standard deduction for 2008. My question is pertaining to the sales tax deduction. To figure out your sales tax deduction, you need to calculate your income for 2008 which is your AGI for 2008 plus nontaxable income from 2008 and Available income from 2007. Since I took an itemized deduction in 2007, Line 68 is going to be different when I amend my 2007 tax return because of the calculations. Do I enter the "Available income from 2007" from Line 68 from the "original 2007 return" or from the "Amended 2007 return?"

 

[LdiJ]

I reside in a state that does not require you to file state taxes, so my questions are on filing federal taxes.

I have completed amending my 2007 Form 1040X federal tax return and I have completed my 2008 Form 1040 federal tax return but have not yet filed either.

I have 2 questions pertaining to my 2008 tax return before I file both returns...

1. Turbo Tax asks for last year's AGI. However, let's put the software issue to the side... Let's say that the IRS did need this number for verification purposes, it's still a good question. If indeed, you needed this number on the form and I do not believe you do... Since I am amending 2007, do I enter the AGI from the "original 2007 return" or from the "Amended 2007 return?"

The IRS is going to be rejecting the electronic filing of your 2008 return if the AGI that you use doesn't match their records. Since they don't yet know that you have amended your 2007 return, and won't even get it processed into their system until at least several weeks after you mail it, its clear that the AGI you have to use is from your original 2007 return.

2. I will be taking the itemized deductions, not the standard deduction for 2008. My question is pertaining to the sales tax deduction. To figure out your sales tax deduction, you need to calculate your income for 2008 which is your AGI for 2008 plus nontaxable income from 2008 and Available income from 2007. Since I took an itemized deduction in 2007, Line 68 is going to be different when I amend my 2007 tax return because of the calculations. Do I enter the "Available income from 2007" from Line 68 from the "original 2007 return" or from the "Amended 2007 return?"

For that one you should use the figures from your amended return, because those will be the accurate figures.

 

[SAHM]

Thank you so much for your help!!