amending with QDCGTW on original return

I am trying to amend a 2012 return. The original preparer did not deduct TDI (deductible in RI as a personal tax) and the tax on the original return was from the QDCGTW. When I enter the TDI, that should reduce the tax by about $340 but the tax liability on line 6 of the 1040-X does not change. I assume I am overlooking something very basic but can't figure out what it is. The QDCGTW on changed the tax by about $40 on the original return. Does anyone have any ideas? Thanks.

AMT?

no AMT on original return

Just start comparing forms and worksheets line by line, starting with Schedule A (you didn't say, but I assume that is where you are entering this deductible state income tax, if that's what TDI is).

it does go on Schedule A - I had entered the original information into my software directly onto the forms rather than through the worksheets in order to save time, then added the TDI (which is Temporary Disability Insurance, but which is deductible as a personal tax on Schedule A). Would that have made a difference by not using the worksheets?

In a perfect world, yes you could just enter the original amounts directly onto 1040-X, and then prepare the amended version only, but given your result, that didn't work. So, for example, how are you verifying that TDI wasn't in fact included on the original return? If you don't reproduce the original return "from scratch", you have limited ability to track down why a change is or is not happening. Don't you have the original Schedule A to compare to your version? Is the AGI the same on both returns (should be). Is Line 5 on your 1040X correct?

Also, from your OP, I didn't understand the following: " The QDCGTW on changed the tax by about $40 on the original return. " I assume "on" means "only", are you saying that tax using cap gains rate rate was $40 less than the tax using the tax tables? If you have the original QDCGTW, compare it to the amended version line by line to see what's different.

What software are you using?

I have all the original docs from the taxpayers along with the original return. I verified from their documents that they had only deducted excise taxes and not the TDI. Everything else matches up. My Sch A and AGI are identical to the original. I did reproduce the original 2012 return, but rather than inputting everything to the worksheets I input to the lines on the forms and got an exact duplicate of the original return. I did not enter to the 1040-X initially, sorry if that was how it seemed that I described the process. I then saved everything, created an amended return, and input the TDI to the original form for it to then flow to the amended return. This is where the tax liability on Line 6 of the 1040-X does not change.
Yes, the "on" should have been only, sorry for the typo.
I use ATX software.

Can you do a line-by-line compare of page 2 of the 1040 before and after?

Qualified dividends?

Yes, there are qualified divs.

" I verified from their documents that they had only deducted excise taxes and not the TDI. Everything else matches up. My Sch A and AGI are identical to the original."

Wait, "excise tax"? What exactly is TDI? In CA, we have State Disability Insurance (SDI), which is a deductible state income tax shown on every W-2 of any CA employee (minor exceptions). Why is the amended Schedule A identical to the original? Shouldn't the Sched A line 5 deduction be increased by the TDI?

" What exactly is TDI? In CA, we have State Disability Insurance (SDI)"

Agree w Makbo, TDI is equivilent to CASDI."TDI withholdings from your earnings are deductible for Federal income tax reporting purposes." In CA this is shown on the W-2 box 14 or 20 and tax s/w sends it to Schedule A line 5 where it gets added to state income tax WH.

TDI goes on the medical deductions portion of Sch A, not Ln 5. Could this be why you are not seeing any change?

Rhode Island TDI is a withholding from an individual's W-2 to cover short term disability, has nothing to do with a medical expense. In my training and experience it was always listed on "other taxes" Line 8 on the Schedule A. I recreated the return last night and found that the previous preparer had entered the TDI amounts as state income tax on Line 5, which I had never seen done in all my years on preparing taxes. This means there is nothing to amend, the TDI deduction had been taken, it was just taken on a different line where I had never seen it taken before.
Thanks to all who weighed in!

Rhode Island TDI is a withholding from an individual's W-2 to cover short term disability, has nothing to do with a medical expense. In my training and experience it was always listed on "other taxes" Line 8 on the Schedule A. I recreated the return last night and found that the previous preparer had entered the TDI amounts as state income tax on Line 5, which I had never seen done in all my years on preparing taxes. This means there is nothing to amend, the TDI deduction had been taken, it was just taken on a different line where I had never seen it taken before.
Thanks to all who weighed in!

Straight from Pub 17 ...

Mandatory payments made to the following state benefit funds are deductible as state income taxes on Schedule A (Form 1040), line 5.

Alaska Unemployment Compensation Fund.
California Nonoccupational Disability Benefit Fund.
New Jersey Nonoccupational Disability Benefit Fund.
New Jersey Unemployment Compensation Fund.
New York Nonoccupational Disability Benefit Fund.
Pennsylvania Unemployment Compensation Fund.
Rhode Island Temporary Disability Benefit Fund.
Washington State Supplemental Workmen's Compensation Fund.

I have done thousands of returns listing this as "other taxes", never an issue with the IRS...thanks for pointing this out.

Pub 17 hasn't caught up with the New Jersey Family Leave, which runs $32 a year (rounded).

I am wondering if you are in a situation where a majority of the income on the return is qual div's or LTCG (and low taxable income.) You add a deduction that goes nowhere since the clients taxable income is composed of the above mentioned items.

The qualified divs were around $400, W-2 wages were approximately $120K - the qualified divs were a very low percentage of the total income on the return.

I am wondering if you are in a situation where a majority of the income on the return is qual div's or LTCG (and low taxable income.) You add a deduction that goes nowhere since the clients taxable income is composed of the above mentioned items.

But if the itemized deductions went up, taxable income would go down, so QDCGTW would have lower numbers and lower result. In other words, regarding QDCGTW, there is no such thing as a deduction that goes nowhere, unless all of the taxable income is taxed at zero LTCG rate.