How To File for an Amended Tax Return

Naturally, you don’t want the IRS to come across some discrepancies in your tax returns because this can lead to a serious problem in the future. Therefore, if you discovered some errors 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 purely mathematical in nature, the IRS simply corrects these and you do not need to file for an amended tax return. However, certain circumstances require that you file an amended tax return as doing otherwise could give you problems. Discrepancies in deductions or credits, total income, dependents and filing status are among the usual errors in the tax return. Remember, however, that sending a corrected tax return may lead you to get a refund or incur you any penalties. Tax returns filed under Forms 1040EZ, 1040A or 1040 can be amended using Form 1040x, Amended U.S. Individual Income Tax Return. It is essential to keep in mind that amended tax returns should be submitted through mail as electronic systems still do not accept 1040x. Essentially, Form 1040x requests for items such as data that need to be corrected and the reasons for the adjustment requested. One of the most popular reasons that people file amended tax returns is when they need to correct their filing status. Form 1040x allows you to get the deductions that are otherwise taken from you if you filed under the wrong status. Changes from single to head of household status are among the most common requests for this type of data. The amount of deduction available to those who qualify as head of household is substantially different from those who are single filers. If you have diligently paid the taxes on the tax return in question, you may file for an amendment within the three year period following the return’s filing date. Otherwise, the grace period is shortened to only two years. It’s 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. Conversely, there are cases when filing for an amended tax return means paying or owing the IRS more money. While you may not want to file one, in the end it is truly in your best interest to do so to avoid a more serious IRS problem. Sooner or later, the IRS will discover these errors. 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.

Be Sociable, Share!

•