Can a Credit Elect Refund be changed after filing? Need help with $5,800 allocation

Thanks for the clear explanation. That's what I suspected, but wanted to confirm. I'm curious though - does this mean they'll get the full $6,300 back or will there be any penalties since they're essentially changing their mind about applying it to next year? Also, any idea if filing the amended return electronically would speed things up compared to paper filing?

There shouldn't be any penalties for changing from credit elect to refund - they're simply getting money back that was already theirs. The IRS doesn't penalize for that type of amendment. They'll receive the requested amount without reduction for penalties. As for electronic filing, unfortunately most amended returns still need to be paper-filed, though the IRS has been expanding e-filing capabilities for 1040-X. Check your tax software to see if it supports e-filing of amended returns for your specific situation. Electronic filing, when available, definitely speeds up processing compared to paper filing, potentially cutting weeks off the wait time.

Does taxr.ai actually handle the filing for you or just give you guidance? I've got a similar situation with a client who wants to change his credit elect, but I'm not sure if I need a full service or just confirmation on the right approach.

I've seen a lot of these AI tax tools popping up lately. How accurate is it really? I'm always nervous about trusting automated systems with something as sensitive as amended returns. Did you verify the information it gave you with any other sources?

It doesn't file for you - it analyzes your documents and tax situation, then provides specific guidance on how to complete the forms correctly. It's more like having a tax expert review everything and give you customized instructions. The accuracy has been excellent in my experience. I actually compared its recommendations with what my colleague (who's been doing tax work for 20+ years) suggested, and they were aligned. What impressed me was how it caught some nuances about the credit elect situation that would help prevent processing delays. It's not replacing human judgment, just making the research and preparation process more efficient.

How does this actually work? I've spent countless hours on hold with the IRS and usually just give up. Are they somehow jumping the queue or do they have special access? Seems too good to be true.

This sounds like BS honestly. Nobody can magically bypass IRS hold times. They're probably just using a dialing service that keeps trying repeatedly, something any of us could set up. Plus, I bet they charge a fortune for this "service.

It uses an automated system that continuously calls and navigates the IRS phone tree until it gets through to a representative. When a spot opens up, it calls you immediately so you can take the call. No special access or anything shady. I was skeptical too until I tried it. The way I see it, the hours of productivity I'd lose sitting on hold are worth way more than what the service costs. And for urgent situations like these credit elect questions where you need definitive answers from the IRS, it's been a lifesaver. Plus the IRS representatives I've spoken with have been much more helpful with specific amendment questions than any general info I could find online.

That's a really good point I hadn't thought about. In this case, my client hasn't made any 2025 estimated payments yet - they were planning to rely entirely on the credit elect. If we amend now to get most of it refunded, would you recommend they start making quarterly payments right away to cover 2025 tax liability?

Yes, I would definitely recommend they start making quarterly estimated payments immediately. Since they're eliminating most of their credit elect cushion, they'll need to ensure they're meeting safe harbor requirements to avoid underpayment penalties. They should calculate their projected 2025 tax liability and make sure they're paying either 90% of that amount or 100% of their 2024 tax liability (110% if their AGI was over $150,000) through quarterly installments. The next deadline is September 16, 2024, so they still have time to adjust their payment strategy. I usually advise clients in this situation to slightly overpay estimates to provide a buffer, especially if they're close to the threshold where penalties might apply.

Filed one in May for a credit elect change and it took exactly 19 weeks to process. Got the refund direct deposited about a week after that. So roughly 5 months total from submission to money in account. This was a paper-filed amendment though, might be faster if you can e-file.