When to file an amended return when I am claiming a lower refund?

Forum|Forum|1 year ago
March 3, 2025
2 replies
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I recently filed my 2024 CA tax return with a big mistake that incorrectly increased my refund by several thousand dollars. For purposes of using whole numbers, let's say I thought my refund was $5000 when I filed, but my actual refund should only be $1000.

When should I file this amended return? I know most people say wait until your tax return finishes processing until you file the amended return - and I totally agree with that. Ideally, I would either like to wait to receive the $5000 and file my amended return with a $4000 payment OR let them catch it, have it rejected, and file an amended return with a refund claim of $1000.

However, I'm particularly concerned about long processing times on my original return, which would essentially force me to pay $4000 out-of-pocket with the amended return if I don't receive my $5000 refund by April 15 if I want to avoid penalties. Therefore, I'm not sure which is the best course of action. Thank you!

pk12_2

Employee

@bigcoach92 generally preferred path is to wait till the processing of the return is complete ( assuming of course that the returns have been accepted for processing ). Thereafter file the amended return along with any taxes due.

Note that when you prepare the amended return, TurboTax will assume that you have received the full refund when computing the difference amount to be paid.

MindyB

It's advisable to do as you mentioned- wait until the original return is fully processed (meaning you receive your refund) until you file an amended return. If the return is rejected that would make the fix much easier, but if it is accepted, wait for the refund.

Here is an article you may find useful: How do I amend a California state return in TurboTax Online?

bigcoach92Author

Thank you! I guess then my next question would be: if the original return has not finished processing by April 15, is there a penalty on the $4000 I owe from filing an amended return AFTER 4/15?

I know this is a moot question if everything is done by 4/15, but I've heard some people reporting that the state is particularly understaffed this year and that refunds may take up to 7 weeks.