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For 2019 I received refund $1500 . I'm amending that return adding cash income. Turbotax shows $500 refund for me. Do I pay difference IRS? Why turbotax not calculating?

 
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4 Replies
AnnetteB6
Expert Alumni

For 2019 I received refund $1500 . I'm amending that return adding cash income. Turbotax shows $500 refund for me. Do I pay difference IRS? Why turbotax not calculating?

If you filed your 2019 return successfully and you received your refund of $1500, then that amount is not taken into account when you amend your 2019 tax return.  The previous $1500 would only be accounted for if you had not received it.

 

When you amend your return, the amended return stands on its own with regard to any additional refund or a balance due.  If the amended return you are completing for 2019 is showing that you will receive a refund of $500, then that amount is separate from the previous refund amount of $1500.  So ultimately, your total refund for 2019 will be $2000 after your amended return has been processed.  

 

If there was an amount that you needed to pay the IRS due to the changes you made to the 2019 return, then you would see a balance due instead of a refund.  

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For 2019 I received refund $1500 . I'm amending that return adding cash income. Turbotax shows $500 refund for me. Do I pay difference IRS? Why turbotax not calculating?

Look at the form 1040X …

Column A should have the figures from the original return, Column C the corrected figures and Column B the differences between the other 2 which needs an explanation on page 2 of the form 1040X.

If you completed it correctly you will see an entry on either line 16 OR 18:

On line 16 should be the amount you paid with your original return. If you paid nothing already then this line should be zero.

On line 18 should be the amount of your original refund you received.  If you have not received your refund yet then you need to wait for it.  If the refund changes from what you expected then this line must reflect that change.

Then you will see your extra refund on line 22 OR  the new balance due you need to pay on line 20.

For 2019 I received refund $1500 . I'm amending that return adding cash income. Turbotax shows $500 refund for me. Do I pay difference IRS? Why turbotax not calculating?

But it's not logical for me: I have already received money for 2019. How come amended return can give more money??? (I am not adding any w2 I only added some cash income on schedule C)

My logic works like this: IRS "Hey we gave you $1500, now with this amending we owe you $500 refund. Since we have already gave you $1500  YOU OWE US $1000

RaifH
Expert Alumni

For 2019 I received refund $1500 . I'm amending that return adding cash income. Turbotax shows $500 refund for me. Do I pay difference IRS? Why turbotax not calculating?

You may be due an additional refund even though you are increasing your income. The natural thought is if I made more money I must owe more tax but this is not always the case. Certain credits you may have been eligible for in 2019 such as the Additional Child Tax Credit and Earned Income Credit may actually get larger as you have more earned income which will result in an additional amount being refunded to you. It depends on your exact tax situation, but it is definitely possible that adding more income to your 2019 tax return results in the IRS owing you more money than they originally refunded to you. 

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