I'm still waiting on amended 2020 tax return. What should I do about filing 2021 taxes?

[user314]

I electronically filed an amended 2020 tax return 5 months ago.  It was received.  I called the IRS last month and they said it should be done in another 4 weeks.  I called today and the IRS hotline robo voice said there are too many callers, try again another day, and disconnected me.

My amended 2020 return will affect my 2021 deductions.  Deadline to file for 2021 is coming up in less than 2 months, and it takes me a couple weekends for me to do my taxes.  What should I do?  If I don't have it yet by mid-March should I file an extension for 2021?  Or should I just assume they'll approve my amended 2020 and file for 2021 like normal?

[user314]

If it matters, I used TurboTax Premier to file for 2020 and again to file the amended return electronically in October, it was accepted by the IRS within 24 hours.  I'll be using TurboTax for 2021 as well so everything should import over. 

Just wondering if I should wait for the IRS to confirm that they've accepted the changes in my amended 2020 return before I file for 2021 since the changes in my 2020 amended will have an effect on my deductions for 2021.  If I file for 2021 first, then the IRS tells me they've rejected my amended 2020 changes I would probably have to file 2021 all over again.

[AnnetteB6 · Accepted solution]

You can go ahead and prepare your 2021 return on the assumption that your amended 2020 return will be processed as it was filed.  

Then, if you are expecting a refund from your 2020 amended return, you can wait until the last minute to actually file your 2021 return to see if you get your 2020 amended refund.  If you do not, then you can decide which steps to take with regard to your 2021 return.  The IRS is working through a tremendous backlog, so your amended return may not be processed before the due date of your 2021 return.  

If you expect a refund from your 2021 return, then filing an extension would pose no issues.  But, if you have a balance due for 2021, you will still be expected to pay the tax by the due date. 

So, even if you do need to amend your 2021 return later after getting word from the IRS about your 2020 amended return, filing it on time may still be your best option.

@user314

[user314]

Thanks for your reply.  I appreciate it.  

Yeah, I guess I'll just do my taxes now but not submit them yet hoping I get my 2020 amended back before the deadline.  

If I don't get my amended 2020 back in time I suppose I'll file for an extension for 2021.  Do you happen to know, if I file an extension through TurboTax does the software support the ability to pay the IRS my estimated taxes?  Or would I have to go to IRS direct pay after filing the extension?

[ChondelLO]

Yes. For information on how to pay estimated taxes please visit the link below.

Can TurboTax calculate the estimated payments for next ...