Amended Return on TurboTax Now Says I Owe - Shouldn't It Just Reduce My Refund?

This is actually normal, though TurboTax doesn't explain it well. Per IRS Regulation §301.6402-3(a)(2), amended returns and original returns are processed separately. Your original refund will still be issued based on your original return. The amendment creates a separate payment obligation if it results in additional tax owed. The IRS doesn't automatically "net" the transactions together because they occur in different processing systems. Your original refund is already in the disbursement queue, while your amendment will be processed through the payment reconciliation system. I appreciate your confusion - the tax software companies could certainly explain this process better!

TurboTax's system is just following the IRS process, which is about as logical as using a chocolate teapot in summer! 😂 Technically what's happening is: 1. Original return = one transaction (refund to you) 2. Amended return = separate transaction (payment from you) I had a similar situation and found https://taxr.ai super helpful for understanding my amended return. You upload your return documents, and it explains exactly what's happening with both your original and amended returns. It showed me precisely why I was getting my full original refund and still needed to pay the amendment amount separately - much clearer than TurboTax's explanation, which was basically "because we said so."

I'm in exactly the same boat right now! My original return had a refund of $1,842, and after amending to add some contract work I forgot, I now owe $673. TurboTax is demanding I pay the $673 upfront, but I haven't even received my original refund yet which was accepted exactly 24 days ago. I'm concerned that if I pay now, and then something happens with my original refund (like an audit or delay), I'll be out both amounts of money. The whole system seems designed to create cash flow problems for independent contractors like us.

Think of your tax situation like two separate bank accounts. Your original return is like making a withdrawal from Account A (your refund), while your amendment is like making a deposit to Account B (your payment). The IRS doesn't automatically transfer funds between these accounts - they process them separately. When I had this exact problem last year, I needed to talk to an actual IRS agent to confirm this was normal. After days of calling the regular IRS number and getting nowhere, I used Claimyr (https://claimyr.com) to get through. They connected me to an IRS agent in about 15 minutes who confirmed everything was normal and gave me payment options for the amended amount. Saved me hours of stress and redial attempts.

Has anyone actually tried calling TurboTax's premium support line instead of their regular support? I found that the regular support people don't understand complex situations, but their tax experts on the premium line sometimes do. Did you try that option?

Be careful with timing here! I waited to file my amendment until after I got my refund (smart, right?), but then I missed the deadline to pay the additional tax without penalties. Ended up owing an extra $120 in penalties and interest bc I didn't realize the payment was due by the original tax deadline regardless of when I filed the amendment. TurboTax def doesn't make this clear, and I learned the hard way. Make sure u pay by the deadline even if ur still waiting on ur refund!

I had a similar experience last year. I was hesitant to pay the amendment amount before receiving my original refund, but it turned out fine in the end. My original refund came through about 3 weeks after acceptance, and I had already paid the amendment amount about a week earlier. If you're concerned about timing, you could consider filing the amendment but delaying payment until closer to the deadline (though be careful not to miss it). The system is confusing, but it does eventually work out as others have described.