How To Amend a Tax Return: Step-by-Step Guide
Taxes can be complicated, and it’s not uncommon to make a mistake on a tax return. The Internal Revenue Service recognizes this and allows taxpayers to amend their returns to correct errors they discover after filing.
In the case of mathematical or clerical errors, the IRS will likely amend your return for you. Other types of mistakes require action on your end. How do you amend a tax return? Here’s what you need to do if you made a mistake.
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How To Amend a Tax Return: Step-by-Step Instructions
If you have already filed taxes and realize you made a mistake that needs correcting, you’ll need to file Form 1040X. Here are the steps to take to amend your tax return:
Enter the tax year for which you are amending your return at the top of IRS Form 1040X. Enter your identifying information in the appropriate spaces, including your name, address and Social Security number. Include your spouse’s information if you’re amending a joint return.
Check the box for your amended return filing status. If you’re not changing your filing status, check the box for the status you used on your 1040.
Complete columns A, B and C for lines that relate to the changes that you’re making. Write the amount you originally reported in column A, the net change (i.e., the amount of the increase or decrease) in column B and the corrected amount in column C.
To change:
Income and deductions: Complete lines 1 to 5
Tax liability: Complete lines 6 to 11
Payments: Complete lines 12 to 17
Refund or amount you owe: Complete lines 18 to 23
Complete the “Part I – Dependents” section of Form 1040X if you are changing information related to your dependents. Then list all of the dependents you’re claiming on the amended return.
Explain your changes in Part II of Form 1040X. For example, if you had unreported income, you might explain that you received an additional W-2 after you filed your taxes. Or, if you are claiming a new deduction that you previously overlooked, you might simply say that you were unaware of the deduction or didn’t know that you qualified to claim it when you originally filed your tax return.
Attach any forms and documents needed to support the changes that you’re making or tax schedules related to your changes. For example, if you received new W-2s or 1099 forms, you should attach those to your amended return. Or, if you are electing to itemize your deductions, attach Schedule A.
Sign the form. Include the date, your occupation and your Identity Protection PIN if you have one. If you’re amending a joint return, your spouse also must sign.
Enclose a check or money order made out to the “United States Treasury” in the envelope with your return. You can also pay online through the IRS website if you owe additional tax as a result of your amendment.
File Form 1040X along with any related attachments. If you are filing the amended tax return because you received a notice from the IRS, mail it to the address listed in the notice. Otherwise, mail it to the address listed in the IRS Form 1040X Instructions based on the state where you live.
Track the status of your amended tax return using the IRS “Where’s My Amended Return” website. Typically, it can take three weeks from the time you mail the return until it shows up in the IRS system, and processing time can take up to 20 weeks.
Instead of filing a paper return, you can file your 1040X online, using tax software. In addition to being faster and easier, e-filing gives you the option of receiving any refund you’re due via direct deposit.
Final Take
Don’t wait to file a tax return amendment with the IRS because the sooner you file, the sooner you will receive your refund. Or, if you owe additional money, the sooner you can pay what you owe and can stop potential interest and penalties from accruing. Plus, you only have three years from the return’s original due date or two years after the date you paid the tax, whichever is later, to claim a refund.
FAQ
Here are the answers to some of the most frequently asked questions about taxes.
What is the easiest way to amend a tax return?
The easiest way is by filing the amended return electronically, using tax software. If you're due a refund, you can request it via direct deposit to get it faster.
How much does it cost to amend a tax return?
There's no charge to file an amended return using the paper version of Form 1040X. However, the software companies that let you e-file your amended return might charge a fee.
Does amending a tax return trigger an audit?
The IRS says that amending a return doesn't affect the process it uses to select returns for audit, and a refund doesn't necessarily trigger an audit. However, an amended return does go through a screening process, so it's possible that it would be selected for an audit.
What is the capital gains tax rate?
Short-term capital gains are taxed at your federal income tax rate. Long-term capital gains tax rates vary from 0% to 20%, depending on your income.
Where can I find IRS tax brackets?
IRS tax bracket rates for 2023 are listed here. Rates for 2024 are listed here.
How long does it take to get a tax refund?
Most taxpayers receive their refunds within 21 days, according to the IRS, but how long it takes to get your refund depends on whether you request a check or direct deposit and whether your return requires additional review.
Karen Doyle and Daria Uhlig contributed to the reporting for this article.
Information is accurate as of March 12, 2024.
This article originally appeared on GOBankingRates.com: How To Amend a Tax Return: Step-by-Step Guide
