If I just e-filed and would've been refunded by direct dep but then amended both returns and now owe some back, do I pay what's owed or should I expect corrected refunds?

[vinceviloria]

I just filed electronically and had both my federal and CA returns accepted. I was scheduled to receive refunds from both entities by direct deposit. I realized I forgot to enter some taxable income and completed amended returns for both entities which I will have to mail. The corrections resulted in more tax being owed by me, but the original refunds are still greater amounts. Should I pay what I owe as a result of the amended returns and expect the original refunds or will the refunds be adjusted before I receive them?

[xmasbaby0 · Accepted solution]

STOP.  Do not start mailing in amended returns yet.  WAIT until you see if your e-files are accepted.

You cannot change or add anything on the return that you just e-filed, nor can you stop it.  It is too late, just like when you put an envelope in a US mailbox on the corner.

If you left out a W-2, or a dependent, or a 1099 etc…DO NOT change your return while it is pending.  The changes will go nowhere.

Now you have to wait until the IRS either rejects or accepts your return.  If your return is rejected, you will be able to go into your account and make the necessary changes to your tax return and re-submit your return.

 If the IRS accepts your return, however, then you have to wait longer until it has been fully processed and you have received your refund.  THEN you can prepare an amended tax return and mail it in. You have to be able to work from that return exactly the way it was when it was e-filed originally.  You will need to use a form called a 1040X. You cannot e-file an amended return.  They have to be mailed, and it takes about 4 months for the IRS to process an amended return.

 Meanwhile, DO NOT go in and start changing anything on your return in the system, or you will make a mess for yourself.  Sit tight and wait until you see what the IRS does with the return you just e-filed

[vinceviloria]

I see. To be clear, we're not talking about the acceptance emails from TurboTax, correct?

In my head I was thinking that the amended returns also needed to be filed by the tax deadline. This all makes sense now. I did make changes in the TurboTax system after I got the TurboTax confirmation emails but I understand that those aren't actually going anywhere until I mail them in.

[xmasbaby0]

After you e-file you get two emails from TurboTax.  The first one will say that your return was submitted.  The second email will tell you if your federal return was accepted or rejected.  If you e-filed a state return, there will be a third email to tell you if the state accepted or rejected your state return.

You have three years from the filing deadline to file an amended return.  Don't panic and send in an amended return minutes after you e-file.  Amended returns must be prepared on a Form 1040X and they have to be mailed.  Right now the IRS is not even opening mailed returns, so you could mail it now and wait months for it to be processed.  The normal processing time for a Form 1040X is about four months---it is taking much longer now due the backlog caused by the pandemic.

[vinceviloria]

Thank you for the quick and detailed replies, I’m glad I understand now. While I hate that I didn’t just get it right the first time, knowing how to correctly move forward from here definitely eliminates a lot of stress!