Should I deposit unexpected 2022 Refund check IRS sent

[coolcarn1sam]

Greetings:

IRS  sent a unexpected refund check for 2022 that I received today.  I am yet to receive any notice with explanation.

I am assuming that it is  Estimated 2022 taxes applied from refund due from 2021 original return. 

1. In my Original 2021 return in Line 36 of 1040 I chose to have X amount of refund to be applied to 2022 Estimated taxes.

2.  In 2021 Amendment that I filed in January 2023  I owed additional tax amount Y but was still due a refund. I did not choose to take refund but in Line 23 of 1040-X reduced the 2022 Estimated taxes applied to X minus Y.  

3. The 2021 amendment is yet to be processed as IRS is taking up to 20 weeks.

4. I filed my 2022 return timely without extension and indicated in line 26 of 1040 that I have Paid Estimated tax of X minus Y .

Today I received refund check for Y dollars so it seems that IRS processed the 2022 return and updated the line 26 of 2022 1040 on its own to X instead of Y.  

I am yet to receive a notice why this refund was issued.

Should I deposit this check for Y dollars ?

If so I think I will owe Y dollars when IRS ends up processioning my 2021 Amendment and realizes that they have refunded me Y dollars from 2022 account.

Any advise so I do not complicate this further !!

Thanks Regards

[fanfare · Accepted solution]

"IRS updated ... on its own to X instead of Y. "

They did that because that's the amount you applied to your 2022 taxes.

@coolcarn1sam 

[coolcarn1sam]

@fanfare  Ok makes sense.

As I had lowered the 2022 estimated taxes in the 2021 Amendment will I have dues of (X - Y) when that amendment is processed ?

Will there be a penalty and interest for that return now  ? 

Is there a way I can pay it while the amendment of 2021is still being processed ?

Regards

[fanfare]

" I had lowered the 2022 estimated taxes in the 2021 Amendment "

I don't know what this means. Your estimated taxes for 2022 don't go on 2021 Form 1040-X.

if  you are sure you want to pay immediately go to the IRS Direct Pay page at IRS.gov

Select "Amended Return"   "1040-X"  <tax year>

You should probably wait for a response from IRS if you filed a miscalculated 2021 1040-X

[fanfare]

I makes no sense to apply refund to 2022 with Line 23 if you already filed your 2022 tax return.

@coolcarn1sam 

[coolcarn1sam]

@fanfare  Thanks again. Yes you are right.  But see I had filed the 2021 Amendment in January 2023 which is still not processed !    I later filed the 2022 return just before due date in April 2023.

Thanks for your suggestion that I could pay for 2021 1040-X online.   I will wait and watch for 2021 Amendment to be processed and any notice.

[fanfare]

Expect six to ten months for a 1040-X.

@coolcarn1sam 

[fanfare]

never mind my arithmetic is off today.

@coolcarn1sam