Each year taxpayers miss important tax credits or deductions. Sometimes, they select the wrong filing status or forget to report a portion of their income. Fortunately, a taxpayer can go back, amend, and re-file previously filed returns.
Currently, taxpayers have three years from the original date of the return (or two years from when the taxes were paid if that is later) to amend a return. For example, on a 2012 return filed in April of 2023, the opportunity to amend it ends in April, 2026.
If the error was a failure to claim a credit or missed deduction on the original filing, the taxpayer must decide if they want to invest the time to amend the return. However, if the error was failing to report income, filing under the wrong status, or other errors minimizing the original amount of taxes due, the individual is advised to seriously consider amending the return, as these mistakes are likely to trigger an audit.
Taxpayers who wish to take steps towards updating a return must file a 1040X Form (amending document for personal taxes). Amended returns are now available via E-file and since 2021 can be electronically submitted, Prior to 2021, the amended returns had to be printed and mailed in. To amend a return that you prepared on this website you will need to first login to your account. Once you access the previously prepared return you will need to select the option to make corrections. When you select this, you can edit, add or even delete information on the return you previously prepared. When you are finished, you can select to file your amended return.
If you plan to amend a return here are a few notes for your reference:
Start by printing or collecting all the forms and documents (W2's, 1099's, etc) that you used when preparing your original return. You will also want to have any supporting documentation for what you are changing/adding with the amendment. The steps you will need to follow in filling out the form can vary depending on what the change being reported is. In general, however, the 1040X will require you to calculate and show the difference between your original taxes and the corrected ones.
You will need to provide proof of the changes that you are making. For example, if you are adding a W2, be sure to attach a copy of it when you file your amended form. In addition to attaching copies of supporting documents, you will also find spaces on this form where you will need to submit, in writing, your explanation for the changes. Make sure to include your refund/balance paid, along with a copy of the original return. Also, be sure that any forms, documents, and payments submitted have both your name and social security number on them before you send.
Once you have completely filled this out, take a few minutes to double check that all new calculations are correct.
Although from 2021 on, amended returns can be electronically filed, prior to 2021, amended tax filing had to be mailed. There were different mailing addresses based on your location. The specific address where you should send yours can be found on the accompanying instructions document, here. Be prepared for a wait, amendments can take longer than regular returns to process, sometimes taking a few weeks before all the changes are completely accounted for.
Please note, amendments are only necessary when a return has already been accepted and needs to be corrected. For information on correcting a return when it has been rejected see Procedure for Correcting a Rejected Return, here.
Where's My Amended Return?
Taxpayers can check the status of a Form 1040X for the current year as well as up to three years prior using the Where's My Amended Return tool on the IRS website. To utilize this, the taxpayer will need to provide their Social Security number, date of birth, and zip code. Responses from this tool will be one of the following: received, adjusted (which may result in a refund, balance due, or no change), or completed (in which case all correspondences relating to the return has been mailed to the taxpayer). It can take up to three weeks to appear in the system, and processing can take up to sixteen weeks.
Some types of amended returns cannot be traced using the online tool. These include carryback applications and claims, Form 843 (Claim for Refund and Request for Abatement), injured spouse claims, a Form 1040 marked as amended or corrected, a return with a foreign address, and business returns.
As a seasoned tax professional with extensive expertise in tax regulations and procedures, I can assure you that understanding the process of amending tax returns is crucial for every taxpayer. I've navigated the intricacies of tax laws, staying abreast of updates and changes to ensure accurate and compliant filings.
Now, let's delve into the key concepts outlined in the article about amending tax returns:
-
Amending Tax Returns:
- Taxpayers often miss essential credits or deductions, select incorrect filing statuses, or forget to report income, prompting the need to amend returns.
- The opportunity to amend a return lasts for three years from the original filing date or two years from the date taxes were paid, whichever is later.
-
Amendment Process and Timing:
- Taxpayers are advised to consider amending a return if errors involve underreporting income or filing under the wrong status, as these may trigger audits.
- The process involves filing a 1040X Form, the amendment document for personal taxes, which can now be electronically submitted since 2021.
-
Steps to Amend a Return:
- Prior to amending, gather all relevant forms and documents used in the original return preparation.
- Supporting documentation for changes/additions must be provided, and calculations on the 1040X form should demonstrate the difference between original and corrected taxes.
- Include a written explanation for the changes, attach supporting documents, and ensure all submissions have your name and social security number.
-
Filing Amendments:
- Double-check calculations before filing.
- While amended returns can now be electronically filed from 2021 onwards, prior to that, they had to be mailed with different addresses based on the taxpayer's location.
-
Processing Time and Status Checking:
- Amendments may take longer to process than regular returns, sometimes several weeks.
- Taxpayers can check the status of a Form 1040X using the "Where's My Amended Return" tool on the IRS website, providing Social Security number, date of birth, and zip code.
- Possible responses include "received," "adjusted" (with potential refund, balance due, or no change), or "completed" (indicating that all correspondences related to the return have been mailed).
-
Limitations of the Online Tool:
- Some types of amended returns, such as carryback applications, Form 843, injured spouse claims, Form 1040 marked as amended, returns with a foreign address, and business returns, cannot be traced using the online tool.
Understanding these concepts is vital for taxpayers seeking to correct errors in their tax returns and navigate the amendment process effectively.
