I have just used Turbo Tax to prepare a 2009 1040X, which did not affect the net tax due. But the amount overpaid on the 1040X (line 20) is the same as the amount overpaid on the original 1040. I don’t understand why the 1040X should show an overpayment. I thought it would just show the net as a result of the changes I made, which would be $0.
I missed a transaction on my Schedule D which resulted in a long-term capital loss. I wanted to add it so that it would be on record for the carryover, but it doesn’t affect the tax for the 2009 return. I expected tax due to be $0 and overpayment to be $0.
I do not want to file this and have the IRS send me a refund check, only to figure out 6 months later that I didn’t deserve it.
Is this the correct result on a 1040X? Or did I mess something up in Turbo Tax?
You stopped too soon. You think that “tax due” means “this is how much you still owe right now”, but it really means “this is how much tax needs to be paid at some time or other”.
You need to continue to the bottom of the page. As I see it, it ought to work out like this:
Line 10 is your total tax. Let’s say this was originally $2000, and it has not changed, and is still $2000. (You thought it should be $0, but let’s go with this figure, and you’ll see what I mean.)
Line 16 is your total payments, from withholding and whatever else. Let’s call it $2100.
Line 17 is for “Overpayment, if any, as shown on original return or as previously adjusted by the IRS”. This will be the $100 difference which you fear they might send you twice.
Line 18 is magical. It says “Subtract line 17 from line 16 (If less than zero, see instructions)”, so enter $2000 on line 18.
Line 20 is your answer. It says: “If line 10, column C, is less than line 18, enter the difference. This is the amount overpaid on this return.” But line 10 IS NOT less than line 18. They both say $2000, so there is NOT anything overpaid, and you don’t need to worry.
This seems to be the issue. It seems like Turbo Tax should have filled this line out automatically, but it left it blank. Once filled in, this resolves the problem.