CP24 Notice

[TURB001]

Hello,

Background:

In March 2022 I filed for federal income tax extension. As part of the extension Turbotax calculated my estimated tax payment of about $4443, which I sent along with my extension.

In October I filed my tax return.

On Nov 9th I received tax refund in the amount of $4042.

On Nov 17th I received a CP24 Notice from IRS, which reads " We changed your 2021 form 1040 to match our record of your estimated tax payments, credit applied from another tax year, and/or payments received with an extension to file. As a result, you are due a refund of $4042."

I am reviewing my 2022 Tax transcript and what I am seeing

under "Other Taxes" section

The difference between "Federal Income Tax Withheld" and "Total Tax Liability TP Figures" is about $4042.

Under "Payments"  section

I am seeing "Estimated Tax Payments" to be $4443.

So my question is, shouldn't I receive $4443 back as well since in an essence I had already over paid about $4042 in taxes and paid $4443 more in estimated taxes?

Thank you in advance for your response.

[NCperson]

@TURB001 - probably not.  Look at it this way, if you hadn't made the estimated payment, you would have owed $401.

follow the math on your Form 1040, beginning on line 16. 

(I am assuming that the estimated payment is listed on Line 26)

[VolvoGirl]

You haven't told us what was on your Turbo Tax return.  Was it a refund on line 35a or a tax due on 37?  How much?  Were you expecting the $4042 refund you got on Nov 9 or is that what the letter was for?

Did your extension payment show up on the right line?  For 2021 Federal Extension payments should be on schedule 3 line 10. And go to 1040 line 31.  If it showed up on line 26 as an estimated payment the IRS missed it and added it in.  But then they will eventually see you didn't make the Estimated payment on line 26 and ask for it back.  

[TURB001]

Thank you for your response, much appreciated.

Line 35a: $8485

Line 37: <nothing>

I was expecting $8485

Federal Extension payments on schedule 3 line 10: There is no schedule 3 on my tax return

1040 line 31: <blank>

1040 Line 26: 4,443

[VolvoGirl]

I don't suppose you got the $8485 refund?  Sounds like they took off the estimated payment on line 26 and adjusted your refund ($8,485-4,443=$4,042),  since it should have been on line 31 and they didn't see it there.   They should eventually see the extension payment and send it to you.   You do have proof you paid the $4,443?  How did you pay it?  Does it show coming out of your bank account or credit card?

Did you enter the $4443  when you filled out your return?  You must have entered it as an estimated payment instead of an extension payment.  

So yes you should still be getting the $4443 back.   I don't know how long that will take.   You can try to contact them.