Amending 2022 1040 for unreported rental reimbursement - Schedule E and Form 8582 questions (filing jointly under 150k income)
Title: Amending 2022 1040 for unreported rental reimbursement - Schedule E and Form 8582 questions (filing jointly under 150k income) 1 I received reimbursement money in 2022 for lost rental income when my tenant couldn't pay rent due to losing their job during lockdowns. I didn't include this on my tax return and now need to file an amended return. I'm confused about exactly where this income should be reported - does it go on Schedule E, Form 8582, or both? Also related question... most of the actual rental losses happened in 2021, and I didn't report those losses either. Can I still claim those losses on an amended return for 2021? And if so, would those also go on both Schedule E and Form 8582? For context, my spouse and I file jointly, our combined income is around $142k, and I'm not classified as a real estate professional for tax purposes. Just have the one rental property as a side thing. Really appreciate any guidance on the proper forms for reporting both the reimbursement and the original losses!
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Amara Chukwu
8 You definitely need to amend your 2022 return to report that reimbursement. The income should be reported on Schedule E as rental income. Form 8582 is for calculating passive activity loss limitations, not for reporting the income itself. For your 2021 losses, yes, you can still amend that return too. You generally have 3 years from the original filing deadline to submit amended returns. Those rental losses would be reported on Schedule E, and then Form 8582 would be used to determine how much of those losses you can actually deduct based on your income level and passive activity rules. Since your income is under $150K and you're filing jointly, you may qualify for the special allowance that lets you deduct up to $25,000 in rental real estate losses, even though they're technically passive losses. This phases out as your modified AGI increases from $100K to $150K.
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Amara Chukwu
•12 Thanks for the info! So if I'm understanding right, the reimbursement goes on Sch E only, but the losses go on both Sch E and get calculated with Form 8582? Also, since our AGI is about $142k, does that mean we'd only be able to claim a small portion of the losses due to the phaseout range you mentioned?
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Amara Chukwu
•8 That's correct. The reimbursement income is reported directly on Schedule E. For the losses, you report them on Schedule E first, and then Form 8582 is used to calculate how much you can actually deduct. Regarding your phase-out question, yes, at $142K AGI, you're pretty far into the phase-out range. The special allowance of $25,000 gets reduced by 50% of the amount your MAGI exceeds $100,000. So if your MAGI is $142K, that's $42K over the threshold, meaning your maximum allowance would be reduced by $21K (50% of $42K). This leaves you with about $4,000 of allowable passive losses ($25,000 - $21,000).
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Amara Chukwu
5 Hey there - went through almost the exact same situation last year! I found this great tool called taxr.ai (https://taxr.ai) that saved me so much time figuring out my rental property amendments. I was completely lost about where to report my rental reimbursements and missed losses, but their AI analyzed my tax situation and gave me step-by-step guidance specific to my scenario. It even explained the whole passive activity loss limitation thing in a way that actually made sense to me. Definitely worth checking out if you're struggling with these amendment forms!
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Amara Chukwu
•17 How exactly does it work? Like do I need to upload my previous tax returns or something? I'm always nervous about putting my tax info into random websites.
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Amara Chukwu
•22 Did it actually help you determine how much you could claim with the passive loss limitations? My CPA charges me an arm and a leg for amended returns and I'm trying to see if I can handle this myself.
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Amara Chukwu
•5 It's super straightforward - you can either upload your tax documents or just answer questions about your situation. They use bank-level encryption, so your data is secure. I was hesitant at first too, but they don't store your docs permanently after analysis. Yes, it absolutely helped with the passive loss limitations! That was actually the most helpful part. It calculated exactly how much I could claim based on my income and walked me through the whole Form 8582 process step by step. I ended up saving around $800 compared to what my tax guy quoted me for the amendment. The instructions it gave were clear enough that I felt confident filing the amendment myself.
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Amara Chukwu
17 Just wanted to update after trying taxr.ai - it was actually really helpful! I uploaded my original return and answered a few questions about the rental reimbursement, and it gave me super clear instructions for the amendment. It even calculated my passive loss limitation based on my income and showed exactly where everything needed to go on Schedule E and Form 8582. Ended up being way simpler than I expected.
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Amara Chukwu
14 If you've been trying to call the IRS to get clarification on this amendment stuff, good luck! I spent THREE WEEKS trying to get through to someone about my rental property amendment question. Finally found this service called Claimyr (https://claimyr.com) that got me connected to an actual IRS agent in about 20 minutes. They have this demo video showing how it works: https://youtu.be/_kiP6q8DX5c. Basically saved me hours of redial hell. The agent I spoke with confirmed exactly how to report rental reimbursements and helped me understand the deadline for filing the amended returns.
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Amara Chukwu
•7 Wait, how does this actually work? I've literally called the IRS like 50 times and always get the "call volume too high" message. Does this service just keep auto-dialing for you or something?
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Amara Chukwu
•22 Sounds like BS honestly. I've tried everything to get through to the IRS and nothing works. How much does this service cost? There's always a catch with these things.
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Amara Chukwu
•14 It works by using their system to navigate the IRS phone tree and secures your place in line. They'll call you when they've got an agent on the line. I was skeptical at first but it saved me hours of frustration. The service does have a fee, but I didn't even think twice about paying it after spending nearly a month trying to get through myself. Just consider what your time is worth - for me, not having to sit around redialing the IRS for days was completely worth it. No catch really, they just solved a real problem that anyone who's tried calling the IRS understands.
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Amara Chukwu
22 Coming back to say I was completely wrong about Claimyr. After struggling for another week trying to reach the IRS myself, I broke down and tried it. Got connected to an IRS rep in about 15 minutes, and she walked me through exactly how to handle reporting both the reimbursement income and the prior year losses. Turns out I was filling out Form 8582 all wrong! The agent even told me I might qualify for a special COVID-related exception that could help with some of those 2021 losses. Definitely worth every penny to get actual answers directly from the IRS.
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Amara Chukwu
3 Don't forget about the ordering rules when amending returns. You should amend 2021 first, then 2022, because any changes to 2021 (especially with carried losses) can affect your 2022 return. I learned this the hard way when I had to amend multiple years for my rental property.
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Amara Chukwu
•1 That's a really good point I hadn't considered. If I amend 2021 to show the losses, would any unused losses potentially carry forward to the 2022 return? I'm trying to figure out the right sequence here.
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Amara Chukwu
•3 Yes, exactly. Any disallowed passive losses from 2021 (amounts that exceed what you're allowed to deduct due to the income limitations) would carry forward to 2022. So first figure out your 2021 situation - how much loss you can actually claim after the Form 8582 calculations, then carry any remaining disallowed losses to 2022. Even if you can't deduct all the losses in either year due to the $150K phaseout, having them properly documented and carried forward is important because you can eventually claim them when you dispose of the property. That's why doing them in the right order matters.
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Amara Chukwu
19 Has anyone tried using tax software for amendments involving rental properties? I'm looking at TurboTax but not sure if it handles the 8582 form well for amended returns.
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Amara Chukwu
•10 I used TaxAct for a similar amendment last year. It was decent with Schedule E but the Form 8582 calculations were confusing. Had to basically understand the form myself to make sure it was done right. Not super user-friendly for rental property amendments.
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