How To File for an Amended Tax Return

Naturally, you do not want the IRS to come across some discrepancies in your tax returns because this can lead to a substantial problem in the future. Hence, if you discovered some mistakes on your tax return, may it be last year’s or the one you recently sent, it is always in your best interest to file an amended tax return. If the errors are just mathematical in nature, the IRS simply corrects these and you do not need to file for an amended tax return. However, there are errors that need to be corrected by you as doing otherwise could cause you problems.

Discrepancies in deductions or credits, total income, dependents and filing status are several of the usual errors in the tax return. Be primed, however, that amending some information in your return may lead you to either get a refund or incur penalties.

The form you have to use to file a corrected or amended tax return is Form 1040X, Amended U.S. Individual Income Tax Return. This will correct the tax return filed under Forms 1040EZ, 1040A, or 1040. Whether you previously filed through e-filing formats or simply sent it through the mail, you must submit amended tax return through the mail. Electronic 1040X forms are not yet accepted by the IRS’ e-file systems. In the 1040x, you are simply asked to pinpoint the data that need to be corrected and the reasons for the requested adjustments.

Correction of filing status are among the most popular reasons for filing an amended tax return. Usually, taxpayers need to change from a single filer to a head of household filer.  Changing this information in your tax returns will give you a refund as there is a substantial difference in the deduction available to those who qualify as head of household.

You are given a maximum of three years following a specific return’s filing date to request for an amendment in your tax return. However, only those who have paid all their tax bills on the tax return in question will qualify for this three year grace period. The period is lessened to only two years if you have not completely paid off your dues.

It is best to wait until a refund is received and all of the paperwork has been processed before you file for an amended tax return for errors discovered in the one you have recently filed. This saves you from any confusion in your tax records or any duplication in your paperwork.

There are, of course, instances and occasions where filing an amended return would actually require that you pay the IRS money for the new information provided. While it is tempting not to file for one, doing such is truly in your best interest, eventually. There is a very good possibility that the IRS will find out about the mistake on your initial tax return. In this situation, they are more likely to impose on you higher fees and penalties as compared to when the mistake was brought to their attention through your amended tax return.

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