Overpayment Refund

[Flex2009GO]

My tax Preparer mistakenly put my estimated taxes (26) under federal tax withheld (25c). Instead of getting the refund (35a), I got the refund plus the estimated taxes. Questions: (1) Do I have to file a 1040X to amend the return? (2) Do I contact IRS office handles the erroneous refund (Topic No. 161)? 

The refund was a direct deposit to my checking account.

[VolvoGirl]

I would wait.  They should catch that and send you a bill for difference on line 25c when they see the withholding is too much.

[xmasbaby0]

If you had a "tax preparer" who made a mistake then that tax preparer should be the one who prepares and files an amended return for you.

CAN I USE TURBOTAX TO AMEND IF THE RETURN WAS PREPARED SOMEWHERE ELSE?

If you did not use TurboTax to prepare your tax return, it is possible to amend the return using TurboTax but it will really be a pain.  It would be better to use the software or service used to file originally.  If a paid preparer made a mistake on your tax return, that tax preparer should do the amended return for you at no charge.

In order to use TurboTax to amend your return, you need to purchase the desktop software for the tax year and re-create the return EXACTLY as it appeared when it was filed with the IRS/states.  Every line has to be the same.  Then you have to "trick" the software into thinking you filed by saying you will mail the return. (but do not mail it)   AFTER that, you use the software to prepare a Form 1040X, which has to be printed, signed and mailed to the IRS.  It takes the IRS about 3-4 months to process an amended return

[Flex2009GO]

Can I contact the IRS without filing for 1040X? Do I have to file the 1040X? My tax preparer said there is no need to file the 1040X because the refund is the same. I don't trust him.

[VolvoGirl]

Well he's right about that.  If you move the estimated payments to the right spot on line 26 it won't change the end result.   Wait for the IRS to catch it.  They should eventually ask for it back.  

[Flex2009GO]

If I wait, IRS may charge me interest plus penalty. Can I file the 1040X on paper by myself?

[fanfare]

your tax withheld is 1040-X line 12

your estimated tax is 1040-X line 13

you are just moving the estimated amount to line 13.

line 18 does the work - your refund is not as filed but as adjusted by IRS and is too large.

That gives you an "amount you owe" to send back to IRS.

If you do it be sure your payment is marked as "for 2021 1040-X"

In Part III explain that the error is from your tax preparer, not you.

@Flex2009GO 

Amended returns are taking 10 months to process but the IRS backlog is coming down.

[Critter-3]

STOP ... WAIT ... do nothing YET.  Both lines on the return are technically payments made to the IRS so when the IRS processes the return they may/should see all the payments made.  If they don't and send you a notice you can simply alert them to the line error at that time.  Amending a return before the originally filed one is fully processed will only cause more confusion... don't do it.

[Flex2009GO]

The original one was filed on 9/17/2022. An extension was filed in April.

[VolvoGirl]

@Critter-3   I think you are late.  They did get the original refund plus the estimates added in since the IRS didn't see them on line 26.  Now he owes the estimates back.  

[VolvoGirl]

---

@Flex2009GO wrote:

The original one was filed on 9/17/2022. An extension was filed in April.

---

You filed on 9/17/22 and already got the refund?  Wow, that was very fast.  

[Critter-3]

Ok ... so now that the IRS has processed the return and did not see the issue amending the return to send back the money before the IRS catches it is appropriate.  

[Flex2009GO]

Will do. Thanks everyone. Great community.

[jj22222]

Hello, i overpaid on an amount due as applied to the wrong year, although how can I get the money back?  It is several thousand dollars overpaid.

[TiffanyL]

@jj22222 

If you overpay your taxes, the IRS will simply return the excess to you as a refund. Generally, it takes about four weeks for the IRS to process and issue refunds. You can reach out to the IRS directly to check into this. I have also provided a FAQ link below for further assistance:

Understanding your CP24E Notice