10 Essential Tips for Filing an Amended Tax Return
Tips for Filing an Amended Tax Return
If you’ve already filed your tax return and later realized that you made a mistake, don’t panic. The IRS allows you to correct errors by filing an amended tax return using Form 1040-X. In this article, we’ll provide you with 10 essential tips to help you navigate the process of filing an amended return. From understanding when to use Form 1040-X to knowing when not to file an amendment, we’ve got you covered.When to Use Form 1040-X
Form 1040-X is used to amend a previously filed tax return that used one of the following forms: 1040, 1040-SR, 1040A, 1040EZ, 1040NR, or 1040NR-EZ. If you need to correct any mistakes related to your filing status, exemptions, income, deductions, or credits, you should file Form 1040-X.
Not All Mistakes Require an Amended Tax Return
It’s important to note that not all mistakes require an amended tax return. If your original return contains math errors or is missing forms such as a W-2, the IRS will usually correct these errors and notify you if necessary. In such cases, there’s no need to file Form 1040-X.
Timing Is Key
Timing is crucial when it comes to filing an amended return. If the correction results in you owing money to the IRS, it’s best to file as soon as possible to minimize any penalties or interest. On the other hand, if the correction results in a tax refund, wait until you’ve received the refund before filing the amended return to avoid any complications. Remember, you must file an amended return resulting in a refund within three years after you filed the original return or within two years after you paid any tax due from that return, whichever is later.
Preparing an Amended Return
To complete Form 1040-X, gather the following documents:
- A copy of the original tax return that needs to be amended
- W-2s and any other relevant income documents
- Schedules, worksheets, or forms needed to support corrections
- Corrected information and calculations
It’s important to note that beginning in 2020, you can file Form 1040-X electronically for tax year 2019 and later, but only if you electronically filed the original return. For earlier tax years, you’ll need to file a paper return.
Stating the Reason for the Amended Return
When completing Form 1040-X, Part III, you’ll be asked to explain in your own words why you’re amending the return. This explanation should be brief and specific, highlighting the corrections you’re making. For example, you can mention that you forgot to claim the Child Tax Credit, received an additional or corrected W-2 form, or forgot to deduct a charitable donation.
Handling Additional Tax Owed
If the correction results in you owing additional tax, include a check or money order with your 1040-X submission. Alternatively, you can pay the balance online using Direct Pay or the Electronic Federal Tax Payment System (EFTPS). If you’re unable to pay the balance immediately, file the amended return and apply for an IRS installment plan.
Mailing Instructions for Paper-Filed Amended Returns
If you’re filing a paper return, each amended return should be mailed separately in its own envelope. The Form 1040-X instructions provide the appropriate mailing address based on your location. Be sure to double-check the instructions to ensure your return is sent to the correct address.
After You Mail the 1040-X
Once you’ve mailed your amended return, it typically takes about 16 weeks for the IRS to process it. After three weeks, you can check the status of your amended return using the IRS’s “Where’s My Amended Return” tool on their website. You can also call the automated toll-free number 866-464-2050 for updates.
Checking the Status of Your Amended Tax Return
To check the status of your amended return, use the IRS’s “Where’s My Amended Return” tool. This tool allows you to track the progress of your return and provides updates on its processing. It’s recommended to check the status periodically for any updates or notifications from the IRS.
Amending Your State Tax Return
After submitting Form 1040-X to amend your federal tax return, check if your state tax return also needs to be amended. If required, obtain the proper form from your state’s tax agency and use the information from your federal 1040-X to assist you in completing the state-amended return. Don’t forget to attach a copy of your 1040-X to your state-amended return.
Remember, filing an amended tax return can be complex, so it’s always a good idea to seek professional advice to ensure accuracy and maximize your refund. With their expertise and guidance, you can navigate the process smoothly and with confidence.
In conclusion, filing an amended tax return doesn’t have to be a daunting task. By following these 10 essential tips, you can navigate the process with confidence and ensure that any mistakes or omissions are corrected accurately. Remember to gather all the necessary documents, state the reason for the amendment clearly, and follow the appropriate procedures for filing and tracking your amended return.