Amended Return and tax due

[jawckey]

I filed my 2025 return on time with refund due. I live in Arizona. But I missed to proportionately allocate rental income among two house appropriately but allocated all of it on one rental home, and I also missed to claim all the expenses like property taxes, insurance, repairs, improvements and others. So after the filing date is over and after I received the state/fed refunds for the original return, I filed anamemdment to correct the two mistakes. I used to TurboTax Premium 2025 for both the original and the amendment and filed electronically. Turbo Tax computed that an additional refund of about $900/- (approx) is due to me.

A few weeks after filing the amendment, IRS sent me a letter correcting line 18 and 19 of 1040-X and mentioned that I owe $200/- instead of refund. I thought TurboTax correctly computes everything. Anyway, IRS did not explain why their numbers are correct or how they arrvied at the tax due but mentioned that I could call them or write to them to find out details!

I did not want to deal with the complications of who is wrong and who is right, so paid off the tax due. However please clarify the following:

1) I have two returns in disk files for 2025 now, it_return_25.tax2025 amd it_return_25_amneded.tax2025. When I eventually need to file 2026 return, to import date correctly, should I be importing from the amended one or the original. Please note that since I forgot to include expenses while filing the original, the amended one contains some rental propery improvements that were amortized only via amendment.
2) After I filed the amendment, IRS corrected line 18 and 19 of 1040-X. These line items are tax computations etc. But they must have been calculated based on changes I sumbitted in the amendement. If I need to import the amendment, do I need to somehow get these IIRS corrections effected into my 2026 return when I file it in 2027 to account for amortization of property improvements claimed only via 2025 amendment?
3) Must I need to call IRS to find out the details of their corrections, despite the fact I choose to pay the dues?
4) Do I need to file another 2025 amendement after getting those details and to document IRS corrected numbers than my calculations in the 1st amendment?

Please help clarify these questions, appreciate the help.

regards

[VolvoGirl · Accepted solution]

#1 Transfer from the amended return.

#2 you probably don’t need to fix anything that transfers over.  It depends why they changed it. 

Look at your actual 1040X amended return.   Line 18 should be your original refund amount and line 22 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.  I don’t know what line19 is.   Is that for a penalty?

Did the IRS send you the right refund from your original return line 35a?  Does that  amount match your amended line 18?

#3 Yes you might want to call the IRS and find out what’s going on.

#4 No you don’t need to do a second amendment.  

[jawckey]

Here is how my 1040X looks:

17) Total payments                                                                                                                                      69,449
18) Overpayment , ... any, as shown on original return or as previously adjusted by the IRS      10,010
19) Subtract line 18 from line 17                                                                                                               59,439
 22) Amount of I ine 21 you wa hefunded to you                                                                                        921

And IRS corrected line 18 and 19 like this:
18) 1040X                        10,010.00 (mine)                                        11,104.00 (corrected)
19) 1040X                         59,439.00 (mine)                                        58,345.00 (corrected)
And IRS decided I oww 174.49 but did not explain why and asked to call if I need further info. I will call them and find out. So 174.49 did not appear like penalty but some recomputation of taxes.

[jawckey]

In my original 1040:

35 a Amount of line 34 you want refunded to you. If Form 8888 is attached              11,104

And I did receive this amount for my original return even before I filed my amendment. So it looks like IRS adjusted this amount down to 10,010 after I filed the amendment.