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, it is always in your best interest to file an amended tax return if you realized that you have some errors on last year’s tax return or the one you just sent through the mail. If the errors are simply a result of miscalculations, there is no need to file an amendment as the IRS will take care of correcting and informing you about this. However, there are mistakes that need to be corrected by you as doing otherwise could lead to problems.

Discrepancies in deductions or credits, total income, dependents and filing status are among the common errors in the tax return. Remember, however, that sending a corrected tax return may lead you to receive a refund or incur you any penalties.

Correcting returns filed under Forms 1040EZ, 1040A or 1040 can be done by filling out Form 1040x, Amended U.S. Individual Income Tax Return. Be sure to mail your requests for amendments as the IRS electronic system still does not accept Forms 1040x. Essentially, pieces of information that need to be corrected as well as the reasons for such are the items that you will put in the 1040x.

Correction of filing status are among the most common reasons for filing an amended tax return. Taxpayers usually change status from single to a head of household filer.  Changing this information in your tax returns entitles you to a refund as there is a substantial difference in the deduction available to those who qualify as head of household.

If you have dutifully paid the taxes on the applicable tax return, you may file for an amendment within the three year period following the return’s filing date. Otherwise, your grace period is lessened to only two years.

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

Conversely, there are cases when filing for an amended tax return means paying or owing the IRS more money. While it is tempting not to file for one, doing such is truly in your best interest, in the long run. In due time, the IRS will discover these errors. In this situation, there is a higher possibility that you will be charged with higher penalties as compared to when you volunteered to fix those mistakes through an amended tax return.

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