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  • For tax year 2014, we submitted our tax return through TurboTax in early 2015.
  • We received our refunds (Federal/State) a few weeks later.
  • In the summer of 2015, we received a letter from the IRS saying we
    hadn't paid enough taxes and that we still owed $2,000. I should
    have researched it some more since I wasn't sure what mistake I had
    made, but I ended up setting up a $50/month payment plan.
  • Just a few days ago, I realized I neglected to include medical
    related tax deductions in our 2014 return.

We'd like to file a 1040x to recoup the additional refund we believe we're due, but we're not sure how to fill out the forms taking into account the $2,000 amount the IRS thinks we still owe them. The 1040x lets you fill in the "original" numbers you filed along with your amended numbers. How should we include the $2,000 amount in those figures? I'm guessing we'll need to include a note about it as well, explaining all about it.

(100% sure it wasn't a scam. We've been paying it off through secure pay irs website we've used before. It's something related to us not including all of our income on original submittal.)

  • What did the letter say about why you owed the $2000? Was this a math error (like, your W2 total tax paid was $3502 and you mistyped it as $5302, or something like that), or something specific to a particular element of the tax code, like your child's SSN wasn't correctly filled in? And - just to be clear - are you 100.0% sure that this was actually from the IRS, and not a scam? – Joe Feb 5 '16 at 18:08
  • 100% sure it wasn't a scam. We've been paying it off through secure pay irs website we've used before. It's something related to us not including all of our income on original submittal. – Asking a question Feb 5 '16 at 19:47
  • (after a comment by OP suggesting that the error was due to not including all income on original submittal) Are you able to include the errant income on the 1040x, or are you unable to include complete information about that? – Joe Feb 5 '16 at 20:01
  • If you don't know how the IRS arrived at this extra $2000 number, you need to talk to a tax professional to help you moving forward. – Ben Miller Feb 5 '16 at 21:43
  • What I'm trying to figure out is... how do I report the $2000 number on the 1040x. It's not a number from the original filing. I'm guessing it could be included in the updated numbers, but I wasn't sure how to do that. – Help with 1040x Feb 5 '16 at 22:43
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You need to read closely that original letter about the $2000. It probably says something like "due to.... we adjusted the numbers on your return" (or whatever the wording on CP2000 is nowadays, which is probably what you've got). What it means is that your original return has changed and now has the numbers they mention. On your 1040x, these numbers should appear instead of the ones you've entered in TurboTax.

Keep in mind that:

  1. The IRS doesn't have to accept your amendment,
  2. The refund due to the change, if accepted, will probably go towards the $2000 you owe (if there's more refund that your remaining balance, it will be sent back to you).

If you don't understand how they came up with the extra debt - you should talk to a tax adviser (EA/CPA licensed in your State) to figure it out. However it is likely too late to contest it, even if they were actually wrong (and that happens, the IRS can be wrong).

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    This answer is confirmed by the label on form 1040X, column A which says "A. Original amount or as previously adjusted (see instructions)". – TTT May 24 '18 at 19:52

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