Do I pay the amount I owe IRS on amendment 1040-X when IRS already charged me before?

[angel888]

My previous company sent a 2019 W2 to IRS 2 years after I left the company, which I never received it (nor receiving the money stated on that W2).  I got audited by IRS in 2021 and paid $XXXX whatever the IRS letter said (since I still did not have that 2019 W2).  Of note, for 2019 tax return, I paid money $YYYY instead of receiving refund. 

While I am doing 2019 amendment now, I added 2hings:

1.) adding depreciation of my rental income; then my amended Fed tax return is positive $ZZZZ

2.) adding 2019 W2 (which I finally got it this year after asking my previous company multiple times); then my amended Fed tax becomes that i owe IRS a couple of hundreds ($AA)

Since I already paid IRS $YYYY for the 2019 tax return (in 2020 while filing), then paid IRS $XXXX when I got audited in 2021, then with this amendment 1040-X (owe IRS $AA), should I still pay IRS $AA?  Or should I get refund by the difference of what I already paid ($XXXX + $YYYY) and what owe ($AA)?

[fanfare]

 IRS already charged me

Please use 1040-X Line 16 to account for money you already paid.

@angel888 

[Critter-3 · Accepted solution]

Since the IRS changed your return and you agreed to the change then the 1040X column A should reflect the return AS CHANGED by the IRS  and column B should only reflect the changes you made since the IRS made changes.   If the 1040X doesn't reflect that then you must start the amendment over again.  Make the IRS changes first before starting the amendment process.

Look at the form 1040X …

Column A should have the figures from the original return (OR AS CORRECTED BY THE IRS), 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.

How do I cancel or undo an amended return in the TurboTax CD/Download software?

If you started amending your federal return by accident and would like to cancel the amendment, follow this process to correctly "unamend" your federal return:

1. Open your return.
2. Switch to Forms Mode (Windows instructions | Mac instructions).
3. In the left pane, select Form 1040X.
   • Windows: After the form is generated in the right pane, click the Delete Form button at the bottom of the window.
   • Mac: From the Forms menu, select Remove Form 1040X.
4. Follow the on-screen instructions to remove the 1040X from your return

1. Important: Go back through the TurboTax interview and undo any changes you made after you selected the option to amend your  return, as merely deleting the 1040X will not undo those manual entries for you.

State Amendments

The best way to "unamend" your state return is to go through your state return from the beginning and keep your eyes peeled for amend-related screens or questions.

The amend question usually appears right at the beginning or towards the end of the state interview (never in the middle).

Correct any entries that have to do with an amended return, e.g.:

• Answer No when asked if you want to amend;
• Clear any amend-related checkboxes;
• Delete entries in the tax year field.
• Note: In a few state programs, you actually have to answer Yes to the amend question so you can revisit the screens that contain the information you want to delete.

[angel888]

ooh, I see Line-16 now!  I should go back to find how to enter this in TurboTax.  Thank you so much!!

[angel888]

Thank you soooooo very much for these details!!!!!!!!!  Line-16 now in Column C is only about 10% of tax I paid (in the reporting year and in responding to IRS audit taxing me on the un-reported W2).  I will redo my amendment by following your instructions, hopefully it goes smoothly to make it right!

[angel888]

Hi, may I ask how do I make IRS change the payment that I already paid (twice: one was at the time at that year's filing [2018], the other was paid [in 2021] when IRS audited my tax return to pay for the unreported W2)) in TurboTax?  It does not seem that TurboTax has a place for me to enter the (over)paid tax ...

[angel888]

It seems that I do not know how to change Line-16.  The only place I found to possible enter the additional tax I paid is under Deductions & Credits --> Estimates and Other Income Taxes Paid --> Other Income Taxes Paid in 2018 --> Withholding not already entered on a W-2 or 1099.  Do I do it right?

[Critter-3]

If you are using the Downloaded program to complete this amendment then switch to the FORMS mode and make the line 16 entry directly.   OR   fix it manually on a paper form and recompute the rest of the lines.  

[angel888]

Hello~

Thank you so much for taking the time helping me here!! (apologise for my tardy response.  My old computer that has TurboTax for that year has not been charging power properly so I was not able to work on my amendment)

I am able to switch to FORMS and enter the tax paid under Tax Payments section --> Line 6 "Overpayments applied to year-xxxx" (also have removed the amount that I entered wrong earlier in Line 18 (withholding)).

After turning back to Step-by-Step in TurboTax, LINE 16 does not change, instead, in LINE 13 under Column B.  The tax I already paid is also showing in Schedule 5 Other Payments and Refundable Credits, Line 66 now.

-- Do I make it right?  How come LINE 16 is not changed but LINE 13?  Where should I enter in Schedule 5 to make 1040-X LINE 16 updated?