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Returning Member
posted Jun 3, 2019 10:45:25 AM

My filed 2017 Fm 1040 included over-payment applied to 2018. In preparing 2017 1040X that will not change over-payment credit to 2018, should Line 23 = 0 on Fm 1040X?

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1 Best answer
Intuit Alumni
Jun 3, 2019 10:45:30 AM

The 1040X is difficult to understand since it is not set up to mirror a 1040. 

If you have an overpayment in the original year, and apply it to the next tax year, that applied over-payment will not change. It is reported on line 18 of the 1040X. It is not an amount that can be adjusted. 

For example, if your tax liability in 2017 is $210 and you paid in $300, you will get a $90 refund. You can choose to apply that 90 to 2018.

You amend your 2017 return and now your tax liability is $300. You paid 300 AND applied 90, so you will actually owe 90 with the amended return and you will get a 90 credit on your 2018 tax return. 

It might make more sense if you understand that very often an amended return is calculated years after the original. If there was an overpayment applied, it would be impossible to change it since it had already been applied.  If I filed in 2015, applied an overpayment to 2016, then amended my 2015 return in 2018, the overpayment has already happened. 

On an amended return, the IRS treats all overpayments applied to next year as having already happened. 

[edited 01-17-19I6:29pm]

12 Replies
Intuit Alumni
Jun 3, 2019 10:45:26 AM

Why are you amending if there is no change in tax?

Returning Member
Jun 3, 2019 10:45:28 AM

I received a (significantly) amended K-1, which changes passive loss carryover amounts.

Intuit Alumni
Jun 3, 2019 10:45:29 AM

I see, if you are only changing the carry-over, line 23 should be the same as the original.

Intuit Alumni
Jun 3, 2019 10:45:30 AM

The 1040X is difficult to understand since it is not set up to mirror a 1040. 

If you have an overpayment in the original year, and apply it to the next tax year, that applied over-payment will not change. It is reported on line 18 of the 1040X. It is not an amount that can be adjusted. 

For example, if your tax liability in 2017 is $210 and you paid in $300, you will get a $90 refund. You can choose to apply that 90 to 2018.

You amend your 2017 return and now your tax liability is $300. You paid 300 AND applied 90, so you will actually owe 90 with the amended return and you will get a 90 credit on your 2018 tax return. 

It might make more sense if you understand that very often an amended return is calculated years after the original. If there was an overpayment applied, it would be impossible to change it since it had already been applied.  If I filed in 2015, applied an overpayment to 2016, then amended my 2015 return in 2018, the overpayment has already happened. 

On an amended return, the IRS treats all overpayments applied to next year as having already happened. 

[edited 01-17-19I6:29pm]

Returning Member
Jun 3, 2019 10:45:31 AM

Yes, agreed, but TurboTax is showing 0 on Fm 1040X Ln 23 and there doesn't seem to be any way to change it.  Can I somehow open Fm 1040X and amend it?

Returning Member
Jun 3, 2019 10:45:32 AM

To clarify:  Ln 23 on Fm 1040X = 0, but Ln 77 on the "new" Fm 1040 still shows the original amount applied to 2018 tax.

Intuit Alumni
Jun 3, 2019 10:45:34 AM

Yes, you can edit that....did you use your TurboTax 2017 to compute the 1040X?

Intuit Alumni
Jun 3, 2019 10:45:36 AM

checking

Intuit Alumni
Jun 3, 2019 10:45:37 AM

Line 18 on the 1040X has you account for the overpayment you had on your original return.
It should still show on your 2018 return. For example, if you paid 1000 in tax, and had 250 applied to 2018, that 250 should still show on 2018 because the amended return has you subtract it from tax paid on line 18 of the 1040X

Intuit Alumni
Jun 3, 2019 10:45:38 AM

Please see the updated answer, an overpayment applied to next year does not change.

Returning Member
Jun 3, 2019 10:45:40 AM

Thanks.  Got it solved.

Returning Member
Jun 3, 2019 10:45:41 AM

In conclusion, if I'm understanding you correctly, Ln 23 of the 1040X indicates the additional amount (if any) that should be applied (credited) to my account at the time of filing of the 1040X return.  The amount shown on Ln 77 of the original 1040 return has already been applied and will not change.  In my case, since the tax amount remains the same, Ln 23 of the 1040X should, in fact, be zero.