For the most part, the IRS will correct common errors that they catch on a tax return while processing it. There are certain instances where the IRS may be unable to fix a return and it will require the taxpayer to amend their tax return in order to make the correction. Taxpayers now have the ability to file their amended returns electronically in order to get their returns filed accurately and processed with the IRS.
Optima Tax Relief reviews tips taxpayers should use when amending their taxes.
Avoid amending your return over math errors or missing forms.
Typically, taxpayers don’t need to file an amended return in order to correct math errors on their original return. The IRS will most likely correct any math or clerical error on the return and accept it even if a taxpayer forgets to attach missing tax forms or schedules. If additional information is requested, the IRS will mail a letter.
Taxpayers should use Form 1040-X to amend.
Taxpayers can use Form 1040-X, Amended U.S. Individual Tax Income Return, to correct any mistakes they place on their past returns. If you are filing an amended 1040 or 1040-SR, you can now file electronically using tax-filing software. All other amended returns are required to be manually mailed to the IRS. Taxpayers should indicate the changes they are making on their amended return and provide any tax documentation as proof.
Amend to correct errors.
Taxpayers should file an amended return if they placed an incorrect filing status or failed to report some of their income. If taxpayers claimed deductions or credits on their tax return that they technically don’t qualify for, they may also need to consider filing an amended tax return. Taxpayers should be aware that changes made to their federal return may also affect their state taxes and should contact their state tax agency to see if this is the case.
Pay any additional taxes owed.
Taxpayers who think they will owe more taxes should file a 1040-X and try to pay their tax liability off soon as possible in order to avoid any penalties and interest.
File your amended tax return within a three-year limit.
Taxpayers typically have three years from the date they filed their original tax return to file an amended return in order to claim a refund.
Use separate forms to amend multiple tax years.
Separate 1040-X forms must be submitted for each year that is being amended in order to avoid confusion with the IRS.
