I logged into Turbotax this morning to file an amendment to my 2020 federal return. The only change was to adjust down one tax deposit made in the fourth quarter of 2020. The software notified me that if I proceeded, it was going to "reset the counters" both on federal and state, to zero. Having no other choice, I proceeded and the screen began to say that the tax liability was zero. I made the change and the software said I had a liability equal to the reduction of the payment. In the tools section it said my overall liability was the old refund amount, minus the reduction which was the correct amount. If I wanted to file the refund electronically, I had to authorize a withdrawal from my checking account. (The information was already there from the days when I thought I was getting a refund.) Soon the screen was asking for final authority to withdraw. There was no direct notification on the screen as to what amount I was authorizing. Was it the reduction amount, which was incorrect, or the overall amount from the tool box? I had Turbotax support on the telephone. They were sharing my screen. He could not tell me which amount was going to be authorized so I ended up deleting the amendment. The software reverted to its old, incorrect amount and I am back to square one.
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I didn't follow all that. But have you got the first refund or paid the first tax due? You should not amend until the IRS is finished processing your return and you get the refund or pay. Wait and see if they catch the missing estimate and add it in for you.
Thank you for the advice. The question really focuses on how the Turbotax on line amendment software works. Assuming it was the correct time to file an amendment, it was impossible to know what amount the software planned to deduct from my account.
you cannot use direct debit or direct credit when you do an amendment.
You must send a check or pay online.
The amount to pay is on your Form 1040-X.
Don't file an incorrect Form 1040-X.
If you reported too mush estimated tax already paid, IRS computers will catch that and correct your tax return for you.
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