All You Need to Know to Amend a Tax Return

p>Occasionally mistakes are made as we file our taxcurrent and avoid penalties. The big advantage to filing
returns each year. If there are simple mathematicalearly is that you allow yourself the time to amend or
errors, the IRS will usually correct them and senddeal with changes as needed and still meet the April
correspondence indicating the changes. However, in15th deadline.
cases where income was left out or there areAnd it's after April 15th
changes to your filing status or claimable credits, youFiling an amended return after that same tax season's
should amend your return to avoid penalties.April 15 deadline will result in penalties and interest being
FORMS AND DUE DATESassessed from the 15th to the date the additional tax
Amended tax returns are filed with form 1040X, andis paid. Filing the amended return quickly after the
can cover any previously filed 1040, 1040EZ, 1040A, ordeadline may avoid some of the accuracy-related
1040NR. The 1040X includes columns to itemizepenalties.
changes to the original return, and allows forIt is recommended that you use a tax professional to
explanations of the changes if needed. If your changesprepare all returns-especially amended ones-to ensure
affect any of the schedules attached to the originalquick turn around and accurate filing.
return, you will need to attach the schedules to theWhy would you want to file an amended return that
1040X as well to better illustrate the alterations. Ifincreases your tax liability? Honesty is the best policy
you're amending multiple years, you'll need to include awhen income is omitted. Filing an amended return to
separate 1040X for each.indicate the proper changes can save time and
If You're Due a Refundpenalties later, as failing to do so can inspire an IRS
Note that if you're making changes that either enableaudit. If you are audited it can be many months before
you to receive a refund or increase the previousthe matter is resolved-not to mention you'll be
refund, you must file the 1040X within three years ofassessed the additional liability along with penalties and
filing the original return OR two years of paying theinterest.
tax-whichever comes later. If you filed an original returnFILING OPTIONS
that claimed a refund and plan to amend the return toUnfortunately amended returns cannot be filed
increase the refund, you must wait until you've actuallyelectronically, so you'll need to mail the return to the
received the refund to send the amended tax return.service center used for your original return. You can
If You Have a Balance Dueexpect processing of your 1040X in 12 weeks;
And it's before April 15thsometimes quicker but occasionally up to 16 weeks.
In cases where amending your return will increase theFor further reading on federal amended returns:
owed tax, you must file the amended return with theIRS Tax Penalties & Interest: Late Filing - Click
additional payment by April 15th. This way you'll stayHere.