Reasons You Need To File An Amended Virginia Income Tax Return
Changes to Your Federal Return
If you or the IRS changes your federal return, youre required to fix or correct your Virginia return to reflect the changes on your federal return within one year of the final determination date of the federal change.
IRS CP2000 Notices & Federal Tax Adjustments
The IRS reports changes to federal returns to Virginia Tax. However, this can happen years after you receive your IRS notice, and interest will continue to accrue on any additional balance due starting from the original due date. To avoid additional interest on any tax due, file your amended Virginia return as soon as you are notified of a change to your federal income tax return by the IRS – dont wait for us to notify you.
You have one year from the resolution of your federal audit to file an amended Virginia return. If you dont file an amended return, or notify us in writing of IRS audit results, we can adjust your return based on the IRS audit findings at any time in the future, which may result in additional tax and interest.
If youre not sure if you need to file an amended Virginia tax return, give us a call.
Changes to Another States Return Affecting Your Virginia Return
If you file an amended return with any other state that affects your Virginia income tax, you must file an amended Virginia return within one year.
Correcting an Error
Fill Out Form 1040x According To The Instructions
Provide a clear explanation of your reasons for filing the Form 1040X. If you are paper filing the return, attach all forms you are amending along with any new supporting documentation and mail them to the address provided for your location in the Form 1040 instructions. This will be the same IRS service center that processed your original income tax return. Include a payment for any additional tax due. If you don’t include the payment, the IRS may assess interest and penalties on the unpaid balance.
How To File An Amended Return
Complete your amended return as if you are filing the return for the first time.
Submit all the forms relevant to the information in your amended return , such as:
- forms for any credits you are claiming or amending,
- forms you submitted as attachments to your original return that are still applicable , and
- all your wage and tax statements, such as Form IT-2.
Do not submit a copy of your original Form IT-201, IT-203, or IT-195.
See the instructions for Form IT-201-X or IT-203-X for additional information about what to submit with your amended return.
See the instructions for the form you originally filed to determine which form to file when amending your return .
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What If I Owe Tax But Still Need To Amend
If there’s tax due, you can arrange for payment when you e-file the return, or send a check with the Amendment if you sent a paper return. If theres a refund due to you, the IRS will send you a check once they’ve processed your amendment.
Note: The IRS can take more than four months to process the Amendment.
Correcting Errors On Schedule C
Amending an incorrect Schedule C and sending the changes to the IRS is a two-step process. First, you must make the changes to Schedule C, and this means preparing a new one. You don’t have to mark it as amended in any way, and there’s no additional special form for this.
Recalculate everything on Schedule C after you’ve made the changes. For example, if you corrected your cost of goods sold, this will affect your total for net income. Now you can transfer the accurate information from your new Schedule C to your personal 1040.
The IRS suggests that the easiest way to figure the entries for Form 1040X is to make the changes in the margin of the original tax return and then transfer the numbers to Form 1040X.
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Someone Else Claimed Your Child On Their Tax Return
You go to file your taxes and the IRS rejects your return because your ex has already claimed your child as a dependent.
Of course, you and your ex cant both claim your child as a dependent if you want to qualify for certain tax breaks like the child tax credit. You may have a divorce decree or custody agreement in place, but for IRS purposes the parent who gets to claim the child as a dependent is typically the parent with whom the child lived for more than half the year and who provided more than half of the childs support.
If you and your ex can agree that you should be the one to claim your child as a dependent, your ex will need to file an amended return to remove your child as a dependent. If the two of you cant agree, the IRS will apply tie-breaker rules when deciding who will get to claim the child.
How An Amended Tax Return Works
If you make a mistake when filing your annual tax return, you can correct that mistake by filing an amended tax return. The form you must file to amend your return is called Form 1040-X, the Amended US Individual Income Tax Return.
Up until August 2020, you had to print a hard copy of Form 1040-X and mail it to the IRS, regardless of whether you filed your original return by mail or online. But the arc of technology eventually prevailed, and now you can file amended returns for 2019 and all future years on your online tax software, as long as you filed your original tax return online.
Stranger says that common reasons for needing to amend your tax return include:
- Changing the amount of income or expenses after you discover you miscalculated when filing the next year’s return
- Adding tax credits that were previously overlooked
- Carrying losses back to previous years to offset your income and get a refund
- Reporting 1099 income that you didn’t report previously
If you do need to file an amended return, according to the IRS, you have the later of three years after the date you filed your original tax return or two years after the date you paid your tax to file your amended return. If you filed your original return before the April 15 due date, it is considered filed on April 15
Quick tip: The IRS typically has three years to initiate an audit .
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You Receive New Information After Filing Your Return
You’ll need to file an amended return if you receive information after filing your original return that significantly changes your taxable income. For example, you might receive an amended W-2 form or a 1099 form showing previously unreported income . If the new information affects the deductions or credits that you claimed on your original returnfor example, by upping your income to a point where the tax break is reduced or no longer available to youyou’ll need to file an amended return for that, too.
You won’t receive a refund for these types of changes, but you still need to file an amended return to avoid penalties and additional interest.
Changes you make on an amended return affecting your income, deductions or tax liability may also affect the amount of or cause you to owe the alternative minimum tax. So be sure to check that, too.
One Big Mistake Taxpayers Make When Filing An Amended Return
The most common mistake many taxpayers make when they need to file an amended return is failing to file an amended state income tax return also, Curtis says.
Many states rely on the federal return, so if the federal return is amended often the state return needs to be amended as well, she says. Additionally, when filing an amended return, the IRS is looking for documentation to support the amendment, so failing to include the appropriate documentation as to why the taxpayer is amending the return is a common mistake as well.
You usually dont need to file an amended return if you discover math or clerical errors on a recently filed tax return, Gibson says.
The IRS will often correct those types of mistakes on its own, he says.
If the IRS does not fix the math mistake, you should file an amendment to make the correction.
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Take Advantage Of State Tax Laws
If you prepare your own tax returns, it’s best to fill out both your federal and state returns before actually submitting either one. But sometimes that’s just not possible. You might be too busy to do them both at once, so you send in your federal return one day and put off your state return for another day. Then, when you’re finally working on your state return, you realize that something you did on your federal return is going to cost you more in state taxes than what it saves you in federal taxes. If that’s the case, it might make sense to amend your federal returnand pay a little more in federal taxesso you can cash in on a larger state tax break.
And while we’re talking about state tax returns, remember that a change made to your federal return may very well affect your state tax liability, too. So, if you’ve already filed your state return, check to see whether filing an amended federal return means you’ll have to file an amended state return as well.
What Taxpayers Should Know About Amending A Tax Return
IRS Tax Tip 2018-118, August 1, 2018
Taxpayers who discover they made a mistake on their tax returns after filing can file an amended tax return to correct it. This includes things like changing the filing status, and correcting income, credits or deductions.
Here are some tips for taxpayers who need to amend a tax return.
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If You Must Amend Your Return
If you need to make a change or adjustment on a return already filed, you can file an amended return. Use Form 1040-X, Amended U.S. Individual Income Tax Return, and follow the instructions.
You should amend your return if you reported certain items incorrectly on the original return, such as filing status, dependents, total income, deductions or credits.
However, you dont have to amend a return because of math errors you made the IRS will correct those. You also usually wont have to file an amended return because you forgot to include forms, such as W-2s or schedules, when you filed the IRS will normally request those forms from you.
Identify The Error Or Amendment You Wish To Make
If you are correcting an error on your original tax return, you will need a blank copy of that particular form from the same year. This will allow you to recalculate your tax and to see which numbers on the original tax return will change as a result of the amendment. You can find IRS forms from prior years using TurboTax’s prior-year returns function, or you can search through the IRS website for it.
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How To File An Amended Tax Return
Filing an amended tax return is simpler than you might think. Here’s what you’ll need to file:
- A Form 1040-X for each year that you’re amending your return
- A copy of the original return you need to fix or update
- Any notices the IRS sent you about issues with your return
- Any supporting documentation you need that has to do with the changes you’re making
Here’s how the process works:
Quick tip: If you’re mailing in your return, the address you send it to will depend on the state where you live. Check out the IRS site to find the right address for you.
Make Arrangements If Your Tax Preparer Made A Mistake
If your tax preparer made a mistake or filed your taxes incorrectly, it is also very crucial that you can coordinate about amendments as soon as possible. Unfortunately, the IRS mandates that you have to be the one paying for penalties. You can contact your tax preparer to make necessary arrangements.
You may also check your contract with your tax preparer, to see if he or she can shoulder the penalties of the tax errors. Some tax preparer firms offer insurance fees for mistakes on tax returns. Reading the statute of limitations also helps. If worst comes to worst, you can file a complaint with the Office Of Responsibility at the IRS.
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If You Are Claiming An Additional Tax Refund
If you are filing an amended tax return to claim an additional refund, youll have to wait until you have received your original tax refund before filing a Form 1040X. Amended returns take up to 12 weeks to process.
You may cash your original refund check while waiting for the additional refund.
Also you generally MUST file the amended return within three years from the date you filed your original return, or within two years after the date you paid the tax in order to get the extra refund.
How Do I Amend My Federal And/or State Tax Return
Its important to note that once you have sent off your tax return, you can no longer edit that specific return.
Its very important to note that you should not attempt to correct the situation by filing another original Form 1040NR return. That will confuse things further and may cause additional headaches for you. If you want to amend your federal tax return, you will need to file a Form 1040-X, Amended US Individual Income Tax Return, even if you filed your original return only a few days ago.
You wont have to correct the entire tax return, just outline the necessary changes and adjust your tax liability accordingly.
Your state will use a unique form to amend your tax return which you will need to attach to your federal state return.Below we will show you how you can easily fill out 1040x online and amend your tax return with Sprintax!
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How Far Back Can You Amend Taxes
The IRS has very specific rules about when you can amend your taxes.
You can amend your taxes up to three years from the date you filed the original tax return and up to two years from the time you paid that years tax.
The good news is that the IRS accepts the later date of these situations.
So, if youve been scrutinizing your 2016 tax return and have found a tax mistake, you have until mid-April 2019 to file an amended tax return.
You can also amend multiple tax returns in one year. However, you will have to fill out a separate Form 1040X for each year and mail these in separate envelopes.
Lastly, taxpayers can only amend their taxes via papernot e-filing. You may also have to wait up to 16 weeks for your amended return to be processed.
File Your Tax Return For Online
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How Long Will My Amended Tax Return Take To Process
According to the IRS, it can take up to 16 weeks to process the 1040x once it is received.
How to check an amended tax return status
The IRS Wheres My Amended Return? tool allows you to follow the processing stages of your amended return from receipt until completion. You can track if your return is in received, adjusted, or completed status.
How long does it take to get a refund from an amended tax return?
There is no set time that an amended tax refund will take to get to you, so you usually just have to be patient.
Is amending a tax return a red flag?
Thousands of people have to amend their US tax return each year, so dont worry about whether youll receive an audit due to your amended tax return. As long as you provide the IRS with the required information on your amended tax return, everything should be fine.
Dont hesitate to contact the Sprintax team if you need help with amending your return!