I filed 1040x after my parents claimed me on their return. I owed 616,original refund was 2697. IRS says I owe 1464 more.used your info for form but it's wrong.why?

[dalberta62]

I see this is the difference from original refund which was increased by included education credits, but turbotax made it seem like the TOTAL owed didn't include returning the refund, then paying . It also gave wrong data to fill out the 1040x. Very misleading. It made my parents lose money claiming me because they paid me the amt I lost by letting them get the education credits for me.  Very disappointed.

[Critter]

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.
On line 18 should be the amount of your original refund you received.

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

[Critter]

If you were a dependent of your parents the education credit was not yours to claim so you had to pay it back.  It was your mistake to claim yourself on the original return so don't blame a computer program for your error.

[Opus 17 · Accepted solution]

I'm unclear on whether you now owe $1464 or $4161, but it doesn't really matter.  You owe what you owe.  

If you can be claimed as a dependent, you must check the box that says you can be claimed, even if the person who could claim you offers to not claim you. In most cases you can be claimed as a dependent by your parents if you are a full time student, under the age of 24, and live at home over the summers.  Being claimed as a dependent means you lose your personal exemption, so only $6300 of your income is tax-free instead of $10,300.  That will account for at least  a $400 difference in tax owed.  You are also not eligible for any education credits, so you have to pay them all back as well.

Check the form 1040-X carefully as @Critter#2 says.  Your amended return is a complete copy of your tax return with corrected figures, plus the 1040-X cover page.  Compare your original return, your new return, and your 1040-X.  If your original return shows a refund of $2000, and your new return shows you owe $100, then the 1040-X should show that you now owe $2100 (payback of the improper  refund plus payment of the correct tax.)

Whether your parents save more than you lose is complicated and depends on their income and other deductions and credits.  It's totally ridiculous to blame Turbotax because you made a deal with them without understanding the tax laws.  The tax rules are not that complicated if you take the time to read them. https://www.irs.gov/uac/about-publication-17

It is unclear whether your parents claimed you as a dependent and already got their full refund (which means they probably had to mail in their tax return) or if they left you off their return so they could e-file and now have to file their own amended return.  If they did their return correctly and claimed the education credits for your tuition, then most of the time, they should gain what you lose, or close to it, unless their income is so high that they are disqualified.  That is something to take up with Congress, not Turbotax.

If your family gets a better net benefit by you claiming the education credits and not being a dependent, then it is likely that you can get away with filing that way as long as you all agree (violating the rule I cited above), because the IRS doesn't really have a way of verifying it.  Again, that is something you need to work out with your parents before you file next year's tax returns.