How do I fix this? Fed return e-filed w std deduction; $3,200 Fed and $4 State taxes due. Fed tax check & State return/check not mailed as of 6Apr19. Re-ran, itemizing I would owe $3,700 Fed but would get $1,000 State refund (thx to Fed $10K limit on mortgage deduction). 1. Do I send the original $3,200 & $4 checks and then file amended returns? 2. Since I know there will be a $3,700 Fed tax liability, do I send them that now and carry a $500 credit until I can send the amended returns? Or 3. Is there a better way to handle this that I don’t know about?
You can amend your tax returns, but you will need to ensure that both returns have been processed in order to avoid the perception that duplicate returns are being filed.
It is suggested that you pay the original tax returns balances due now in order to avoid any penalties and interest. Once you file the amended returns, then you should pay the $200 difference with the amended return. This will prevent your state refund of $1,000 from being offset to pay your federal tax liability.
It can take up to 14 weeks to process an amended return; therefore, if the $200 credit is sitting on your account after the original tax return is filed, the Internal Revenue Service may refund the $200 to you.
Please note, if your original returns have been processed, you should file your amended return by April 15, 2019 in order to avoid any penalties and interest on the $200.00 payment.