Sometimes, despite double-checking, you make a mistake on your tax return. You may forget that your grandmother who now lives with you could be claimed as a dependent or forget about a side job you worked early in the year When circumstances change, so does your tax situation. Luckily the IRS has provided a way to file a corrected return after your original was already sent to them. Filing an amended return is easier than you think.
What is an amended return?
An amended tax return is separate from your original return. If you realize the return you submitted contains mistakes, the amended return allows you to make the necessary corrections.
For example, if you misreported credits, deductions, or earnings, you would submit an amended return with accurate facts and figures. Mathematical mistakes, on the other hand, are typically automatically corrected by the IRS.
When should you file an amended tax return?
Although the IRS usually automatically corrects mathematical errors, some circumstances may require you to file an amended federal return.
- You realize you owe more taxes than you paid.
- You did not report the correct income for the year.
- Your filing status changed or was incorrectly reported the first time.
- You did not claim the correct number of dependents.
- You did not claim tax credits or deductions.
- You claimed the wrong tax credits or deductions.
If the changes to your federal return affect your state return, you’ll need to submit an amended state return and a 1040-X for your federal return. State agencies often use the information from your federal return to calculate your state tax return. This means any changes to your income, credits and deductions, number of dependents, or filing status may require you to file an amended state return. You can find specific instructions for amending your state return on your state agency’s website.
Note: If the IRS automatically corrects a clerical error on your return, they will mail a notice to inform you of the changes made. Depending on the result of the correction, you may receive a check in the mail for the additional refund due to you or a bill for the increase in tax liability owed.
How to file an amended tax return
Filing an amended return can be a smooth and straightforward process if you follow these steps:
Step 1: Collect necessary documents
First, gather the original tax documents from the year you are amending, as these will be the basis for any corrections and comparisons. This includes the tax return the IRS initially accepted, tax forms you used to complete the return, and any new tax documents related to the amendment.
Step 2: Fill out Form 1040-X
Next, complete Form 1040-X by providing your personal information, changes to any amounts, updates to dependents or filing status, and an explanation of why you are filing an amended return.
Form 1040-X has three columns to document amount changes:
- Column A: Enter the amounts initially reported and accepted on your return.
- Column B: Enter the net amount of the change, whether it’s an increase or decrease.
- Column C: Enter the correct amount after the changes.
When you file an amended return with TaxSlayer, we’ll automatically fill out the columns based on the changes to your account.
Step 3: Submit your amended return
Since 2020, the IRS has allowed taxpayers to file amended returns electronically or by mail. When submitting the completed amended return, include any documentation that supports the changes. Examples of additional forms may include copies of new tax forms (W-2s, 1099s, 1098s, K-1s, etc.) or any other relevant documents or notices.
Note: If you need to mail additional supporting documentation, you may opt to mail your amended return.
Amended tax return deadline
You can file an amended return at any time, but it’s best to do so as soon as you realize there’s a mistake on your tax return.
While there is no deadline for amended returns, there is a statute of limitations on how long the IRS is required to refund you. To qualify for a refund, you must file the amendment within three years from the time the return is accepted OR two years from the date you paid any amount due on that return, whichever is later.
How long does it take to process an amended return?
It typically takes up to 20 weeks to process an amended return, whether filed on paper or electronically. It’s important to pay attention to the details. Ensuring you’ve submitted complete paperwork can help expedite the process and update your return as quickly as possible.
The IRS may reject an amended return due to procedural errors, such as incomplete forms or missing supporting documentation. You can often resolve this error by resubmitting the amended return with the requested information.
If your amended return is formally denied, the IRS will mail you a notice to explain the rejection. If you disagree with the rejection, you can request an appeal to reconsider your amendment.
What is the IRS statute of limitations?
A statute of limitations is a law that places a time limit on how long the IRS has to issue a refund check. If you are filing an amended return and are owed a refund check, you must submit the amendment within three years after submitting your original return. Otherwise, you forfeit your refund. After three years, the only exception to this rule is receiving a refund for overpaid taxes.
How do I check the status of my amended return?
Use the IRS Where’s My Amended Return? tool or call 866-464-2050 three weeks after you file. Have your taxpayer id number, date of birth, and zip code on hand to prove your identity. Your status will either be:
- Received – The IRS has received your amended return and it’s being processed.
- Adjusted – The IRS has adjusted your account resulting in a refund, balance due, or no change to your tax liability.
- Completed – The IRS has processed your amended return and will mail processing confirmation.
TaxSlayer makes it easy to complete and submit an amended tax return electronically.
Get started for free with TaxSlayer!
