Dumb mistake - listed TY21 est. payment as TY20

[PFD1988]

I e-filed last night to the Feds and California, then realized I had made a mistake.

I made estimated payments to IRS and CA on 4-15-2021 for TY 2021, but when I did my taxes for TY2020 I screwed up and counted those payments as being for TY2020.

Thus, I increased the amount of estimated taxes paid for 2020. However, because I am devoting all of my refund (both Fed and CA) to 2021 estimated taxes, my error did not affect the amount of refund I was asking for (since I'm not asking for any).

So this morning after Turbotax told me both returns were accepted I tried to go through the amending process. Turbotax will let me delete the extra estimated payment from my list of estimated payments for 2021, but it does not allow me to change the amount I'm devoting to next year's taxes.

The net result is that it now looks like I have a much higher tax bill for 2020 -- because I have listed an incorrectly high amount of estimated taxes, and I'm applying an incorrect amount to next year's taxes.

For example, to keep it simple, say I had made an estimated payment of $5000 on 4-15-2021 for TY21. But I (incorrectly) counted that payment for 2020 instead. My 2020 return ALSO shows me devoting that $5000 to 2021 taxes, on my 2020 1040. Hope that's clear.

What should I do? Just wait for the IRS and CA to catch this and see what they say? I assume from past experience the IRS will see that my estimated payments for 2020 are lower than what I listed, will see I'm trying to apply too much of my refund (i.e., higher than the actual refund amount) to 2021, and bill me for the extra estimated taxes. But what I really want to do is just adjust downward the amount I'm applying to next year's taxes.

I wonder if a lot of people will make this mistake this year because of the switch in the 2020 filing deadline to 5-17-2021, but the continued requirement to pay estimated taxes by 4-15-2021.

Thanks for any advice.

[DanielV01]

You have two options from what I can see.  The Form 1040-X has a line (line 18) that states Overpayment from original return.  If there is a TurboTax entry to override this field, you can put $0 in that field.  Then later you are asked how much refund from the amend you wish applied to estimated taxes, which you will select all of it.  In the explanation field you can then explain that the original amount calculated as credited to your taxes towards 2021 was XXXX and it now changes to YYYY.  

The other is just fill it out and let the IRS and CA adjust it.  Still use the explanation above, but the risk I see is that they may actually credit you for the original payment to the 2021 estimates and make you pay back the balance created by the adjustment.  Probably not the end of the world (since you will end up making these estimates anyways), but certainly more of a hassle.  

Either method should work.

[PFD1988]

Thanks very much for the reply.

I guess a simple question I have is: in the current version of Turbotax online is there a way for me to see the filled out forms and, as you say, override entries and change them?

I seem to remember in past years that was possible but in trying to amend my returns this morning I could only use the questions to get to various entries... and the program did not give me the chance to change the amount of the refund I was applying to this year's estimated payments. I tried lots of things but could not get to that question somehow.

[DanielV01]

I'll be honest I'm not super-familiar with the amended return's navigation in TurboTax.  I know there will be a screen or set of screens to document the changes, and so that information could be in that section.  There should be a manual override because if the IRS adjusts the original amount you would need to input that figure into TurboTax somehow.  

There is or should be a preview screen for the amended return in the Tax Tools section.  If you can find that look for Line 18 and see what is generating.

[PFD1988]

Thanks again for the reply.

I tried a few things but Turbotax online simply will not let me change the amount of the refund I'm applying to this year's taxes.

I have a hunch this has something to do with IRS rules. I'm guessing that the IRS lets you amend the data, but doesn't want you messing with the refund information. Probably it's an anti-fraud measure, so that scammers don't file amended returns asking for a $1 million refund or whatnot.

I assume the IRS is going to see that I'm asking to apply an amount next year's taxes which is larger than my refund and that surely will be disallowed. I'll bet this is a common mistake and they'll just catch it and correct it.

That's my guess anyway. For the moment, I'll just wait for the IRS and CA to send me a letter, as they usually do...

I realize this is a niche problem. Thanks again for your help.

PD

[DanielV01]

Your welcome, and that's why I suggested both methods.  If one doesn't work, the other should.  Best of luck!