How To Submit An Amended Tax Return

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 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 technology eventually prevailed, and now you can file amended returns with online tax software, as long as you also 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 either 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, whichever is longer. Note that if you filed your original return prior to the filing deadline, it is considered filed on the deadline, so you have until that date three years later to amend.

Quick tip: The IRS typically has three years to initiate an audit .

Amending Your Income Tax Return

OVERVIEW

What if you’ve sent in your income tax return and then discover you made a mistake? You can make things right by filing an amended tax return using Form 1040-X. You can make changes to a tax return to capture a tax break you missed the first time around or to correct an error that might increase your tax.

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.

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When Should You File An Amended Return

Common reasons that people need to file amended tax returns include wanting to claim a tax credit or deduction that you didn’t include on your original return, needing to update your income, and needing to make changes to your tax liability. The IRS’s Interactive Tax Assistant has a quiz that will help you determine whether you should file an amended return.

But it’s important to note that not every tax mistake necessarily requires an amended return.

The IRS classifies some mistakes as “mathematical or clerical errors,” and it reserves the right to rectify those mistakes without any action from you. This right is known as the IRS math error authority, according to the IRS’s National Taxpayer Advocate. If you’ve fumbled some addition or subtraction or forgotten to include information that you need to prove you qualify for certain tax credits, you don’t need to file an amended return.

Additionally, Stranger says that some mistakes, like changing your filing status from married filing jointly to married filing separately or changing your accounting method can’t be rectified through filing an amended return.

If you do have to file an amended return, keep in mind that the changes might also affect your state tax return. Contact the tax authority in your state to figure out what steps you need to take to amend your state tax return.

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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Can An Amended Tax Return Be Filed Electronically

Amended tax returns need to be filed on paper they cant be filed online through e-file. If you need to amend more than one tax return, you should print out and prepare a separate Form 1040X for each tax year. Each years return must be mailed to the IRS in separate envelopes. Attach any other relevant tax forms or schedules and include them in the envelope with your return.

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How Long Do You Have To Amend A Tax Return

There is a limited amount of time during which taxpayers can file for an amended return and have it accepted by the IRS. So, if you want to receive a tax refund, the amended tax return deadline is:

• No later than three years from the due date for the original tax return.
• Three years from the date on which you filed the return in question.
• Within two years after youve paid your taxes for the year in question.

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What Forms Are Required With An Electronically Filed Amended Return

The electronic Form 1040, 1040-SR, and 1040-NR Amended Returns will require submission of ALL necessary forms and schedules as if it were the original submission, even though some forms may have no adjustments.

The Form 1040-SS/PR Corrected returns will require submission of ALL necessary forms and schedules as if it were the original submission, even though some forms may have no adjustments. Note that Form 1040-X will not be attached to Form 1040-SS/PR.

Amending Special Taxes And Fees Returns For Motor Fuels Cigarette Manufacturers And Distributors:

Motor Fuels Electronic Filing Program

There are two options to correct or amend a return that you already submitted.

Within the same business day as your original submission, and we will cancel your original submission. You may then submit the new tax form when you have made the corrections or amendments. Please note that the original submission will not be considered a valid filing and applicable due dates will apply to your new file submission. *The subject line of the email should be: , Amended Filing Notification for XXXX Period.

After the business day of your original submission, submit your corrected or amended file as if were an original. The electronic file maps for each file format provide coding options for submitting correcting or amending files, but the CDTFA does not utilize these coding options at this time. Once you have successfully submitted the corrected or amended file, with the following information: date of submission, tracking number, account number, period, and reason for/summary of the correction or amendments

Cigarette Manufacturers and Distributors Electronic Filing Program To amend a return online, select “Amend a prior eFiled Report”. Include all transactions previously reported and amendments.

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Fill Out The Correct Form For Your Business

How To Complete An Amended Return

You can file your amended return electronically, or on paper. If you file electronically, follow the instructions for your software provider.

In either case, make sure to indicate that its an amended return before filling it out.

For paper returns, mark the oval labeled Amended Return. Complete the new return using the corrected information, as if it were the original return. Do not make any adjustments to your amended return to show that you received a refund or paid a balance due with your original return. Attach a complete copy of your federal amended return, if applicable.

If your amended return results in additional tax due, interest must be paid on the tax you owe from the due date on the original return to the date filed or postmarked.

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Should I File An Amended Return To Get My Stimulus Check

No, filing an amended tax return will not help you receive a stimulus check or a larger payment amount. If the IRS already determined that you are ineligible to get a stimulus check based on your 2018 or 2019 tax return, the IRS will not reevaluate your eligibility. Similarly, if you have already received your stimulus check and it was less than you expected, the IRS will not reevaluate your payment amount.

Note: If you used the IRS Non-filers tool to claim your stimulus check but needed to file a 2019 tax return, you will need to file an Amended EIP return. An Amended EIP Return is different from Form 1040-X. Read more about an Amended EIP Return to find out if you need to file one and how to do it.

If you did not qualify for a stimulus check based on your 2018 or 2019 taxes, or you did not receive the full amount of the stimulus check you believe you are entitled to, you can claim the Recovery Rebate Credit if you are eligible based on your 2020 tax return.

What Is An Amended Return

An amended return is a form filed in order to make corrections to a tax return from a previous year. An amended return can correct errors and claim a more advantageous tax status, such as a refund. For example, one might choose to file an amended return in instances of misreported earnings or tax credits. Mathematical errors, however, do not require amendments because the IRS automatically corrects for such errors when processing the tax return.

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How To File An Amended Tax Return With The Irs In 5 Simple Steps

Filing an amended tax return requires that you fill out Internal Revenue Service Form 1040X and submit it to the IRS. The tax code is complex and with recent changes, its common for small business owners to make mistakes on their income tax returns. If you make a mistake on a tax return or you receive new information that requires an amendment, such as learning that you qualify for certain tax credits or deductions, you can file an amended tax return to provide the federal government with new information about your income taxes.

These topics show you how to file an amended tax return:

NOTE: FreshBooks Support team members are not certified income tax or accounting professionals and cannot provide advice in these areas, outside of supporting questions about FreshBooks. If you need income tax advice, please contact an accountant in your area.

Fill Out The 1040x Form

Next, you can from the IRS website, along with instructions for filling it out. You can also write in an explanation of why youre filing an amended tax return. The 1040X form has three columns you need to fill in:

• Column A: This is where you write in the amounts related to your income and withheld taxes from your original tax return
• Column B: This is where you write in the net changes to your income and taxes between the original filing and the amended filing
• Column C: This is where you write in the correct amount for your income and taxes from your amended filing

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Can Tax Preparation Software Help You File An Amended Tax Return

TaxAct is one of the few online tax solutions that allows you to create an amended return. You can generate a Form 1040-X by editing your original return and then selecting the amended return option at the end. If you used other tax software, you can enter your original return then enter the changes to create a 1040-X.

Most other tax software either doesnt handle amended returns or charges a much higher fee than originally filing your return. If you still have access to your original software, another option is to redo your tax return using that software. You cant file what the tax software gives you since its a Form 1040, but you can compare the new 1040 to your original tax return and use it to fill out Form 1040X by hand.

What Is An Amended Tax Return

An amended tax return is necessary when youve made a mistake on your original return. For example, if you need to change the amount of income you initially reported, the number of dependents, or change your tax filing status, you should amend your return. Additionally, you can also file an amendment if you forgot to claim a certain tax deduction or tax credit. If you file for an amended return, you can maximize your tax returns.

Not all mistakes, however, require you to amend your return. For example, if there is a small mistake in your returnsuch as a typo in your Social Security number or addressthe IRS will reject the tax return, and youll only need to refile taxes with the correct information.

Amended returns are usually filed when the filer needs to receive an overlooked tax refund. But a simple mathematical error on the original tax return is not a reason for filing for an amendment. If there are such errors, the IRS will automatically correct them, and you wont need to do any corrections yourself. But if there is a more significant error in your calculations, or youre missing a specific form, youll be notified by letter.

Auditing is sometimes a big concern if youre filing an amended return. Still, the amending tax return audit risk is equal to the risk youre undertaking when you file the initial return.

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Disadvantages Of An Amended Tax Return

The drawback of filing an amended tax return is that Form 1040-X cannot be submitted electronically for every tax year, although the IRS has recently started accepting e-filed amended returns for tax year 2019. If filling out the form manually, the taxpayer has to mail the printed-out document to the IRS Service Center that processed the original tax form. The IRS manually processes amended returns, and the process can take 16 weeksor even longer, if the amended return is not signed, is incomplete, has errors, requires additional information, needs clearance by the IRS bankruptcy department, has been routed to another specialized area, or has been affected by identity fraud.

There is, however, a three-year statute of limitations for issuing tax refund checks. Therefore, the taxpayer must file any amended returns that will result in a tax refund within three years after the date they filed the original tax return. An amended return filed to account for additional income or overstated deductions does not fall under any such statute and can be filed at any time.

• You can correct errors on an amended tax return.

• You can claim a refund you were owed even if you didn’t file for it.

• You can correct for circumstances that changed since you originally filed.

• Form 1040-X cannot be filed electronically for all tax years.

• Processing an amended return can take 16 weeks or longer.

• There is a three-year statute of limitations for collecting tax refunds.

Not Amending Your Tax Return

You have an obligation to file your taxes accurately including making changes after filing if necessary. The IRS automatically checks tax returns and may notice that your tax return is incorrect if you dont amend it.

What happens if you dont amend your return depends on what you owe.

• If the IRS determines you owe additional tax, they will charge you interest and penalties. Amending your return sooner so you pay sooner can reduce your interest and penalties.
• If you originally overpaid and the amended return would have resulted in a refund, you can lose the right to claim that refund.

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Amended Returns Must Be Filed By Paper For The Following Reasons:

Submit Online Or By Mail:

Online

Through your tax representative or tax preparation software

Mail

File a California Fiduciary Income Tax Return for estates and trusts:

• Check the amended tax return box
• Complete the entire tax return
• On a separate paper, explain all changes
• Include the estate or trust name and FEIN with each item

Make sure to give a copy of the amended 541 Schedule K-1 to each beneficiary.

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