diff --git a/src/components/MoneyRequestAmountInput.tsx b/src/components/MoneyRequestAmountInput.tsx
index 85bb79f85518..791b3e4d5e48 100644
--- a/src/components/MoneyRequestAmountInput.tsx
+++ b/src/components/MoneyRequestAmountInput.tsx
@@ -88,18 +88,6 @@ type MoneyRequestAmountInputProps = {
      * Autogrow input container length based on the entered text.
      */
     autoGrow?: boolean;
-
-    /**
-     * Determines whether the amount should be reset.
-     */
-    shouldResetAmount?: boolean;
-
-    /**
-     * Callback function triggered when the amount is reset.
-     *
-     * @param resetValue - A boolean indicating whether the amount should be reset.
-     */
-    onResetAmount?: (resetValue: boolean) => void;
 };
 
 type Selection = {
@@ -135,8 +123,6 @@ function MoneyRequestAmountInput(
         hideFocusedState = true,
         shouldKeepUserInput = false,
         autoGrow = true,
-        shouldResetAmount,
-        onResetAmount,
         ...props
     }: MoneyRequestAmountInputProps,
     forwardedRef: ForwardedRef<BaseTextInputRef>,
@@ -216,21 +202,10 @@ function MoneyRequestAmountInput(
     }));
 
     useEffect(() => {
-        const frontendAmount = onFormatAmount(amount, currency);
-        setCurrentAmount(frontendAmount);
-        if (shouldResetAmount) {
-            setSelection({
-                start: frontendAmount.length,
-                end: frontendAmount.length,
-            });
-            onResetAmount?.(false);
-            return;
-        }
-
         if ((!currency || typeof amount !== 'number' || (formatAmountOnBlur && isTextInputFocused(textInput))) ?? shouldKeepUserInput) {
             return;
         }
-
+        const frontendAmount = onFormatAmount(amount, currency);
         setCurrentAmount(frontendAmount);
 
         // Only update selection if the amount prop was changed from the outside and is not the same as the current amount we just computed
@@ -241,7 +216,10 @@ function MoneyRequestAmountInput(
                 end: frontendAmount.length,
             });
         }
-    }, [amount, currency, formatAmountOnBlur, shouldKeepUserInput, onFormatAmount, shouldResetAmount, onResetAmount, currentAmount]);
+
+        // we want to re-initialize the state only when the amount changes
+        // eslint-disable-next-line react-compiler/react-compiler, react-hooks/exhaustive-deps
+    }, [amount, shouldKeepUserInput]);
 
     // Modifies the amount to match the decimals for changed currency.
     useEffect(() => {
diff --git a/src/components/MoneyRequestConfirmationList.tsx b/src/components/MoneyRequestConfirmationList.tsx
index 98ed13a08363..772b1476b84a 100755
--- a/src/components/MoneyRequestConfirmationList.tsx
+++ b/src/components/MoneyRequestConfirmationList.tsx
@@ -300,7 +300,7 @@ function MoneyRequestConfirmationList({
     const isMerchantRequired = isPolicyExpenseChat && (!isScanRequest || isEditingSplitBill) && shouldShowMerchant;
 
     const isCategoryRequired = !!policy?.requiresCategory;
-    const [shouldResetAmount, setShouldResetAmount] = useState(false);
+
     useEffect(() => {
         if (shouldDisplayFieldError && didConfirmSplit) {
             setFormError('iou.error.genericSmartscanFailureMessage');
@@ -479,8 +479,6 @@ function MoneyRequestConfirmationList({
                     onFormatAmount={CurrencyUtils.convertToDisplayStringWithoutCurrency}
                     onAmountChange={(value: string) => onSplitShareChange(participantOption.accountID ?? -1, Number(value))}
                     maxLength={formattedTotalAmount.length}
-                    shouldResetAmount={shouldResetAmount}
-                    onResetAmount={(resetValue) => setShouldResetAmount(resetValue)}
                 />
             ),
         }));
@@ -503,7 +501,6 @@ function MoneyRequestConfirmationList({
         transaction?.comment?.splits,
         transaction?.splitShares,
         onSplitShareChange,
-        shouldResetAmount,
     ]);
 
     const isSplitModified = useMemo(() => {
@@ -521,7 +518,6 @@ function MoneyRequestConfirmationList({
                     <PressableWithFeedback
                         onPress={() => {
                             IOU.resetSplitShares(transaction);
-                            setShouldResetAmount(true);
                         }}
                         accessibilityLabel={CONST.ROLE.BUTTON}
                         role={CONST.ROLE.BUTTON}