How does the refund math work on amendments?
Let's say you got a $2,000 refund when you first filed, but after amending you owe $500. Does that mean you need to send your $2,000 refund back, along with another payment for $500?
Luckily, the answer is no. The $500 on the amendment doesn't mean that your original $2,000 refund has been replaced with a $500 tax bill. That's because on amendments, the refund/owed amount resets to $0 and the new amount reflects the additional refund or tax owed amount from the amendment.
Here are some examples of amendment math:
|Original return||Amended return||Net result for the tax year|
|$2000 refund||$500 owed||$1500 refund ($2000 less $500 owed)|
|$2000 refund||$500 refund||$2500 refund ($2000 plus another $500)|
|$2000 owed||$500 owed||$2500 owed ($2000 plus another $500)|
|$2000 owed||$500 refund||$1500 owed ($2000 less $500 refund)|