My original return has an overpayment of $10,000 which I applied to 2020 estimated tax.
However, I realized that I forgot to report some interest income. I started the amended return, and found out that because the additional income, there is associated tax of $2,000. 1040-X Line 18 has $10,000 (overpayment shown on original return); and Line 20 has $2,000 (amount you owe). However, the revised 1040 Line 20 has $8,000 (amount you overpaid); and Line 22 shows $8,000 (amount applies to your 2020 estimated tax).
So, the 1040-x instruction says that I need to pay $2,000. However the revised 1040 now shows the reduced overpayment (from $10,000 to $8,000) and I don't need to pay IRS (this makes sense as the extra $2,000 tax is deducted from my overpayment).
So, please help. Do I need to pay $2,000 as shown on Line 20 of 1040-x as Amount you owe?
Thank you so much
