1040X Overpayment Questions

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I accidentally made a mistake during my federal tax return for 2021 during the W2 income/tax data entry portion. As a result, the system interpreted that I owed $4,000 to the IRS. Before realizing the mistake I went ahead and made the payment (which the IRS has not withdrawn yet).

Now I am filing a 1040X to correct this error and am instead supposed to receive a refund of $5,000. On the 1040X Form Line 18: "Overpayment, if any, as shown on original return or as previously adjusted by the IRS" would I need to enter the $4,000 for the payment I made in error (even though it has not been withdrawn by the IRS yet)? I just want to make sure that I get my correct refund back of $5,000 and am not charged the $4,000 over the mistake on the original filing.

Separately, would I need to file the 1040X first with the IRS before I can amend my state tax filing since the original error transferred to the state filing portion as well? 

[Cynthiad66]

First, do not amend your return until the IRS has processed your return.  Sometimes, the IRS catch these errors if they are that type of mistake.  Once your return has been processed, then prepare your amended return using the TurboTax software.

Yes, prepare the amended return using the original return numbers.  IRS will make the adjustments according to the database.

Prepare the amended state at the same time as the federal.  Two separate entities that will process independently.  Just easier to continue in the amending process to include the state return, as well.

[VolvoGirl]

No.  Line 18 overpayment is not what you paid.  Line 18 is if your original return had a Refund.

The amended return is only for the difference you get back or owe.  I think the cover sheet shows what the original return WOULD have been if you did it right the first time.

Go by the actual 1040X.  Line 18 should be your original refund amount and line 22 should be your additional refund.  If you paid on your original return it will be on line 16.  If there is an amount owed with the amendment, it will be on line 20.

If you have a tax due, do not send the 1040V.  Just include a check with the 1040X.  Ignore the 1040V.  That is for the original return or what the original return would have been if it didn’t need correcting.  Don’t pay the amount on the 1040V.  Pay the amount on the actual 1040X.