Reasons for Amending Your Tax Return
It can happen to anyone. You’ve collected all your tax return information. You’ve gathered all your W-2s, 1099s, receipts and statements. You’ve crunched the numbers, doubled checked your calculations and mailed the return or used an eFile provider. And then you realize you’ve left something out, another form comes in the mail or realize you chose the wrong filing status. No worries. You can amend your tax return.
Revising your tax return is simple and can even be done several years after you filed the original return. You must use Form 1040x along with a new 1040 and the required schedules and forms. If you’ve used an online tax preparation provider, you can log back in and fill out the 1040X within their program. However, the IRS is not set up to accept amended returns by eFile. You’ll need to print out your return and mail it in.
Top Reasons for Amending Your Tax Return
It’s not necessary to amend a return for an error in calculations. The IRS will automatically correct any math errors and modify the return for you. You should file an amended return in order to:
- Report your correct filing status
- Report additional income
- Report additional withholding
- Make changes to your deductions
- Claim additional dependents
- Remove dependents you claimed
- Claim tax credits you missed
How to Amend Your Return
Amending your return is much simpler than it used to be. This will essentially be your new return, changing your original return to include new information. The entries you make on this form will be the amounts you should have reported on your original return. The IRS says many people find it easier to fill out Form 1040X by figuring the correct amounts in the margin of the return they are amending.
First gather the return you are amending, a blank Form 1040X and related instructions any supporting forms, schedules or worksheets. It’s also a good idea to have the instructions for the return you are amending, since exemption and deduction amounts change from year to year.
On Line A of Form 1040X report your correct filing status even if it’s not changing. Line B tells the IRS which year you are filing an amendment for. Line C tells the IRS why are filing an amended return. Be very specific here, but be brief. State what you are reporting (“I am reporting additional income and withholding from a W-2”), why you are reporting it now (“because I forgot to include it on my original return”), and what changes occurred as a result (“which resulted in changes to my AGI, taxable income, total tax and refund.”).
You will then complete the remainder of the form with the correct amounts you are reporting. This includes income, deductions, tax liability, payments, and refund or amount you owe. On page two of the form you will report your exemptions only if you’re making changes.
You must file a separate 1040X for each return you are amending. The IRS generally takes five to eight weeks to review amended tax returns. Remember if you change your federal return you may also need to amend your state return. Most states have a similar form to the original, also ending in an X.