Information about Filing an Amended Tax Return

Whether you found out that you made an error on last year’s tax return or the one you just sent off in the mail, it is always in your best interest to file an amended tax return. You do not want the IRS to learn about the discrepancy because this could lead to a substantial IRS problem for you in the future. There are cases when the IRS simply identifies and corrects math errors and informs you of any adjustments. This will not necessitate you to file for an amended tax return. However, there are certain mistakes that you don’t want the IRS to discover themselves and that prompt you to file the amended tax return.

Discrepancies in deductions or credits, total income, dependents and filing status are several of the common errors in the tax return. Remember, however, that sending a corrected tax return may lead you to get a refund or incur you any penalties.

Form 1040x, Amended U.S. Individual Income Tax Return, is utilized to file for an amended tax return. This, in effect, corrects the discrepancies submitted through Forms 1040EZ, 1040A, or 1040 Whether you originally filed through e-filing formats or simply sent it through the mail, you must submit amended tax return through the mail. Electronic 1040X forms are not yet compatible to the IRS’ e-file systems. In the 1040x, you are simply asked to identify the data that need to be corrected and the reasons for the requested adjustments.

Among the most popular reasons that people file amended tax returns is when they need to correct their filing status. If you chose the wrong filing status, the 1040X allows you to change that so that you can get back some money which are otherwise taken from you should you have selected an incorrect filing status. Changes from single to head of household status are among the most common requests for this type of data. The amount of deduction available to those who qualify as head of household is substantially different from those who are single filers.

You are given a maximum of three years following a specific return’s filing date to request for an amendment in your tax return. This three year grace period is only available to people who paid all of their tax bills on the applicable tax return. The period is reduced to only two years if you haven’t completely paid off your dues.

If you have discovered a mistake in the return you recently filed, it is best to wait until a refund is received and all the paperwork has been processed before you file for an amended tax return. This way, there will be no confusion in your tax records and no duplication in your paperwork.

On the other side, there are instances when filing for an amended tax return will incur you costs, rather than give you refunds. No matter how attractive the choice of simply running away is, honesty and filing for an amended tax return will always pay off in the long run. This frees you from future problems because the IRS will soon find out about this error. In addition, the IRS may charge you with more lenient fees if you choose to initiate the move of bringing your mistakes to their attention.