When You Can File an Amended Tax Return

When You Can File an Amended Tax Return

When You Can File an Amended Tax Return

It is not uncommon for many people to realize that they have made mistakes after filing their tax returns. Making such mistakes can be costly for you in the long run and the advice is that you should amend your tax returns at any opportunity you get. For people in sole proprietorship businesses such as freelancing, filling 1099-MISC form is a necessity the same way full-time employees are required to have their W-2 forms filled appropriately. In any instance IRS sees a mismatch in your tax return filing numbers, you can be certain of what follows next – you will be required to make necessary adjustments so that your tax statements can fully justify all your documented income.

Filing tax often passes to be a complicated task and consequently, many people often find themselves losing track of all their deductions and credits or sometimes fill in the wrong tax returns.

Again, your 1099-INT form your bank may not appear where you expect it to be in your mail and thereby forget about it, or in some instances, you may receive the 1099-INT form at a time when filing tax returns was the last thing on your mind.

If you make a huge mistake while filing your tax returns, you will be required to account for the mistakes by amending your returns. It is important for any person to have detailed information on what should be done to avoid amending of tax returns. Here are some situations that may cause IRS to request you to amend your tax returns.

  • If you inaccurately report on the number of dependents
  • If you make a mistake in reporting your total annual income
  • Errors in deductions/credit figures
  • If you change your tax filing status

Still, if you have any of the above mistakes and you successfully submit your tax return to IRS, it will be returned at a later time so that you can provide accurate information. If you e-file your tax return but it is rejected and you discover a mistake that usually calls for amendment; you can then correct the error in your tax return without the need for an amendment because in the first place IRS didn’t accept your returns.

If you miss out on the e-filing deadline, still you can proceed to print as well as paper your returns.

Again, you should pay special attention to your state tax filing because sometimes it may be accepted even when the federal tax return is rejected. If you find yourself in that situation, you will have to amend your tax returns.

Here is how you can file a tax return amendment

If you want to have an amendment return, you will need Form 1040X.

You can amend your tax returns several times for multiple years but you will be required to have different Form 1040X for each year you want to amend your returns.

As you are filling your details, you should have in mind that Column A should contain original figures while Column C should have new figures. The difference between the two columns should be documented under Column B. If you intend to list changes in schedules, you will have to include them in Form 1040X.

Important note

If you mistakenly your tax return result to you underpaying taxes, you should consider having an amendment as soon as you can. The more you wait to amend your returns will see an increase in penalties and interest fees and that is one thing you wouldn’t want to experience. Always remember to keep an original copy of your original tax returns as well that of the amended return.