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New Member

On a 1040x can I reduce the original over payment that was applied to 2018 estimated taxes to pay the 2017 balance due?

My original return was filed electronically & accepted by the IRS.  I applied my entire 2017 refund of $4,045 to 2018 estimated taxes.  Now I've filed a 1040x and owe $945.  Can I pay that $945 by reducing the $4,045 to $3,100?

The form I printed with Turbo Tax says on 1040x line 20, and in the instructions, that I should write a check to the IRS for $945.  The printed forms also include a new revised 1040 that shows the amount I overpaid and which will be applied to my 2018 estimated taxes is $3,100 (1040 lines 75 & 77). 

Something's wrong.  I shouldn't write a check AND have a lower amount applied to 2018 estimated taxes.  That's paying twice.  I'd prefer to not write a $945 check.  I would rather pay my additional $945 2017 balance due by reducing the 2017 refund applied to my 2018 estimated tax payment.  Can I do this?

2 Replies
EdwardK
Level 5

On a 1040x can I reduce the original over payment that was applied to 2018 estimated taxes to pay the 2017 balance due?

Yes. There is more than one way you could handle this situation. The key is to ensure you and the IRS agree how to allocate your original refund to each tax year. As you alluded to, you could file an amended federal tax return and include a written request that the IRS allocate $945 from the original refund of $4,045 to the 2017 current tax year and apply the remainder of $3,100 to the 2018 future tax year. You should verify this amount is reported on your 2018 federal tax return. You may have to follow up with the IRS afterwards (especially if they still send a bill) to ensure the amounts have been properly allocated to the appropriate tax years.

[Edited 02.27.18 | 7:00PM PST]

EdwardK
Level 5

On a 1040x can I reduce the original over payment that was applied to 2018 estimated taxes to pay the 2017 balance due?

Please see my edited answer.
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