1040-X 2009 return

[Terry]

I am filing a 1040-X for a 2009 return for additional interest income. The tp originally had a $1000 carryover to 2010; with the additional income, his carryover to 2010 is $600. The way the Form 1040-X looks, it shows he "owes" $400. I know he would owe $400 if he had been given a refund, but in fact, this additional income just decreases his carryover. I've read the directions until I'm bug-eyed. I cannot find a place on the new 1040-X form to make this clear. The tp will be confused if he sees he owes them $400, when he has a carryover to 2010 of $600. Can someone help me with this? This question will probably be placed in the "stupid question" file!

[BP.]

What about if you put his overpayment (carryover) on line 17? Then the $600 will be available to use on line 22 for estimated tax for 2010. Will that work?

[Terry]

Don't think

that will work, as that line specifies "original" overpayment amount. Then it takes that amount and subtracts it from the total payments, making it look like the taxpayer owes them $400. I think I will just write a grand explanation and still put that he wants his $600 overpayment applied to 2010 on Line 22. Anybody else have a better idea?

[Earl]

1040x

It is my understanding that once you apply a refund to estimated tax it is irrevocable. Do not believe you can reduce the original amount he applied. He will have to pay the difference shown on 1040X and retain the $1000 originally carried over as estimated tax.

[Terry]

Thanks!

Earl, that makes sense. I appreciate your response, and everyone's help on this!

[Burke]

It is my understanding that once you apply a refund to estimated tax it is irrevocable. Do not believe you can reduce the original amount he applied. He will have to pay the difference shown on 1040X and retain the $1000 originally carried over as estimated tax.

That is correct. It cannot be adjusted on an amended return. The original amount is treated as if it were refunded to the TP and he sent it in as an estimated tax payment.