CP14 Letter

[Davidwilsonrachel]

I am self employed and filed my 2021 tax return, and ended up owing $6,350. Which I have paid! I then realized I missed a credit for being self employed and amended my return, which was supposed to give me a credit for $5,400. I have now received a letter CP14 saying I owe the IRS $5,436.34. Can someone explain to me HOW?? 

Is it possible that the letter is explaining based on my amendment I owe $5,436.34 for the year, and they’ll refund me the difference from the $6,350 that I have already paid? 

[VolvoGirl]

What credit did you miss for being self employed?  Did your self employment show up on schedule C?  Did the letter say what they changed?  

https://www.irs.gov/individuals/understanding-your-cp14-notice 

[Davidwilsonrachel]

It was the credit for missing work due to COVID. My self employment was on a Schedule C. And the letter does not explain anything that they’ve changed. 

[Davidwilsonrachel]

Is it possible that the letter is explaining based on my amendment I owe $5,436.34 for the year, and they’ll refund me the difference from the $6,350 that I have already paid? 

[VolvoGirl]

I don't know about that.  I haven't heard of getting a letter for that.   They might have adjusted your original return for you.  

Did you efile or mail the amended return?  What does the amended return show?

The amended return will only show the difference you get back or need to pay. You can confirm this by printing your amendment and looking at the 1040X. Line 18 should be your original refund amount and line 21 should be your additional refund. If you paid on your original return it will be on line 16. If there is an amount owed with the amendment, it will be on line 20.

[Davidwilsonrachel]

I E-Filed the amendment. 

Line 18 is 0

Line 21 is $5,400

Line 16 is $5,310

Line 20 is 0

[VolvoGirl]

OH,  I think I know.  You said you paid 6350?  But line 16 is only 5310?  How much was on your original 1040 line 37?  Why did you pay $6350.  Did you send in a check with a 1040ES form?  The 1040ES form is for an estimated payment for NEXT year 2022.  Not for your current tax due.  The tax due was on a 1040V voucher. 

So the $5,436.34 now due is probably your original $5,310 due plus interest for being late.  The $6,350 payment you made was applied to next year's tax return.  

It will take them 6 months or more to process the amended 1040X return so keep waiting for that.