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19 Replies Expert AlumniWhen you are amending your return you also need to change the amount you designated to be used toward the next year's estimated payments.
To change the amount, you designated toward next year:
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I adjusted the overpayment amount by the increase in taxes. The 1040X refers to the old amount and says I owe that amount as a check to be sent to the IRS. So,does this mean the original overpayment will be held and I pay the difference with a check - even though the new 1040 shows the reduced overpayment? Or is the new (reduced) overpayment amount applied to my estimated taxes and I do NOT have to send a check? This is confusing?
March 23, 2020 1:23 PM New MemberI'm waiting for the answer to this as well. I've amended my son's 1040 for additional income but he shouldn't owe. I'm just adjusting the amount applied to his estimated tax but the 1040X is still reflecting a balance due. How do I adjust that??
May 20, 2020 4:11 PM New MemberThe 1040X still reflects a balance due even though the overpayment applied has been adjusted for it. How do you reflect there is no balance due on the 1040X?
May 20, 2020 4:13 PM
I have the same concern. I can find no way that Turbo Tax will transfer my original refund applied to 2021 estimated taxes to my amended (1040xt) submission. Would also like an answer.
May 7, 2021 6:02 AMIf you applied a refund to 2021 taxes, you can't undo that.
Therefore, if you amend and your tax goes up,
you must pay the difference with your Form 1040-X.
May 7, 2021 8:42 AM
Thank You. That's what I thought might be the case, but appreciate your confirmation very much
May 7, 2021 9:50 AM Returning MemberI have the same issue. I missed a 1099 form and am trying to amend my return. I overpaid in 2022 and applied the overpayment to 2023 estimated taxes. When I added the overlooked income using the turbotax n amend function, the amount of my overpayment (and therefore the amount of it I can apply to estimated taxes) decreased by the amount of tax I owe on the missed income. That is fine. I fixed the amount to apply to estimated taxes, reducing it by the amount that I have actually overpaid, which is less than what was on the original return by the amount of the tax I owe on the extra income. So I should be square, having less applied to estimated 2023 taxes and not owe anything. But the Turbo tax system is still saying I owe the difference in cash to the IRS, when in fact, I have already subtracted the amount I owe from what would be applied to estimated taxes. Will I have to pay that amount, even though the am applying less to estimated taxes by that same amount? What would happen then to the amount that I pay through an IRS bank deduction that I really don't owe? Will the IRS refund my overpayment, or will I have to just consider that the extra cash Turbo tax is saying the IRS should deduct is an addition to the now revised amount applied to estimated taxes? OR will Turbo tax somehow show the IRS that the amount shouldn't be deducted from my account at all? PLEASE HELP
April 3, 2023 10:36 AM Expert AlumniThe part of your refund you elected to apply to this year’s estimated taxes can’t be undone on an amendment (as Fanfare wrote earlier in this thread). An amended return is to be submitted only after the original return has been completely processed, and that processing includes the overpayment (which would normally have been sent to you, but in this case has been forwarded to another department of the IRS for the estimated tax).
In the 1040 instructions (here), the IRS tells us that you can apply the amount of any additional ov erpayment (if there is one, on line 21 of the 1040X) to estimated taxes. And then they tell us you can’t change that election (I wish this were written more clearly, but hey—it’s the IRS!).
@jomshopper, unfortunately this means you can’t currently get back any of that money now that your refund has dropped (and it doesn’t help until later). But I hope this was helpful. Be sure to re-post with any additional questions!
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Thanks RalphH1 for your answer. A TT expert told me that I could use the "send check option" for the amount due on the unreported income but not send the check for the additional amount and explain in the comments that I just want to reduce the amount of my application to estimated tax. But if I can't change the amount that my original return said to apply to estimated tax, then perhaps I need to pay the difference after all? The problem is, on the REVISED 1040, while it says zero tax due, the amount to be applied to estimated taxes has now been reduced by the amount the amendment says I owe. So the revised 1040 uses the lower amount as "amount of line 34 you want applied to your 2023 estimated tax .." yet by paying the additional, I should have the FULL original amount applied to my 2023 estimated tax. which would not be showing on my amended return. What will happen to the additional amount I pay that I really don't owe? Can I add it to the newly reduced estimated tax amount as to reach the original total of estimated tax paid when I file next year? or will they refund it to me because they will correct the amount applied to estimated tax to the amount that is on the new corrected 1040?
April 4, 2023 8:42 AM Expert Alumni(You’re very welcome!) The new version of the 1040 which shows up when you do an amendment has some FYI uses, but you’re not submitting that form — just the 1040X. And there can be confusion when we read that revised 1040 like a regular one, out of the amendment context.
The 1040X (with payment) shouldn’t change the amount already applied to estimated tax, so I definitely don’t think you need to worry about somehow losing some of your money. I do like the other TurboTax expert’s idea of sending the amendment without payment (with a request to take it out of the estimated amount). I can’t find any IRS clarification that it would do this (maybe that agent has seen it though), and the worst-case-scenario is that they send you a bill with some small penalties and interest (assuming the processing doesn’t take too long).
Another idea worth a try (in my opinion) is calling the IRS first (at 800-829-1040), as discussed in this article (about seven paragraphs in). Apparently the “Internal Revenue Manual” (the not-so-behind-the-scenes procedural rules for IRS employees) mentions a undefined “hardship” scenario wherein the amount applied to estimates can be changed. With a little luck (getting a person on the line, then getting them to change it), maybe you can take care of it up front, and feel more comfortable about sending the amendment without payment.
Good luck, @jomshopper! Let us know here in the Community how this project is going, and especially what other questions are coming up.
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