The process of filing taxes can be very tedious. There are so many different requirements that you need to fill in and so many documents that you need to attach. There are also chances that you might make a mistake while filling out the tax form. You might realize that you missed a valuable tax deduction or didn't mention a credit. Instead of worrying about your mistakes, you can always amend the tax return about them.
If you're wondering what it is or how you can do it, don't worrywe've got you covered. This is a common problem that many people face, and this article has everything you need to know. So, let's jump right into the article and have a look at it.
What is an Amended Tax Return?
An amended tax return is a form filled out when someone makes a mistake in their initial tax forms. With this form, you can correct the errors and claim your tax with a more advantageous tax return. This can also be called a refund. One can file returns when they misreport earnings and even tax credits.
There can also be mathematical errors. However, you don't have to fill out an amended form because the IRS will automatically correct such errors when it processes the tax return.
When to File an Amended Return?
Now, the question is when you should be filing an amended return. Below, we have mentioned why you should file the amended return tax.
If the tax filing status and the tax year changed or were incorrectly entered, you must file the amended tax. For example, you filed the tax as a single but married last year. They must amend their return by filing an amended tax return with the proper married status.
If the number of dependents claimed is inaccurate, an amended tax return needs to be filed if you want to remove a dependent, add a dependent, or change the name of the dependent. For example, if a couple has a baby before the tax year has ended and has claimed the tax without the baby's name, you must amend the tax return and add the baby's name.
Tax credits were claimed incorrectly. If this is the claim, you need to amend your tax return.
The income reported for the tax year is incorrect. If the taxpayer cannot add the tax documents for the tax year, you must file the amended tax return to report the additional income.
The deductibility of certain expenses changes as a result of changing laws. Sometimes, legislation might change the laws as the taxpayer has filed the return. Hence, in such cases, you might need to amend the tax return and change the information.
Who Should File an Amended Return?
Another question that comes is who should be filing these amended tax returns. All taxpayers are required to file their taxes annually for the last year. If taxpayers realize that they have made a mistake in their tax forms or the circumstances under which they have filed the taxes have changed, they can amend their taxes.
If any of these issues have occurred, the Internal Revenue Service has provided different ways for people to quickly fix their mistakes. They can use Form 1040-X or the IRS website.
It is important to know that not all the forms need to be amended. If there is a mathematical issue, you don't have to fix it; the IRS will do the calculation, and everything will be fixed by itself. If any documentation is missing, the IRS will send the mail to the taxpayer, and they will email you so that you can submit the documents.
How to File an Amended Tax Return?
You might be wondering how I can file the amended tax return. Don't worry; we have mentioned a step-by-step guide you can complete below.
Collect Your Documents
The first thing you need to do is collect all the documents. If you want to correct the income, then you might need a new W-2 or 1099 form. If you want to claim a tax deduction or credit, you will require the documentation that supports this new claim. Therefore, according to the claims, you will need to have the documentation ready so that you can attach it to the form and submit it to the IRS.
Get the Right Forms
When amending the tax return, you need Form 1040-X. You also need other forms according to the changes you are making. If you want to add tax interest or dividend income, you need a Schedule B copy. If you are changing the deduction, then you need the Schedule A form.
Fill Out the Form 1040-X
Form 1040-X has three different columns. Column A shows the numbers that were previously reported in the tax return. You can use a copy of your period tax return to fill this part.
There is column B, where you must show how the amounts increase or decrease from the original tax return. Lastly, column C shows the correct amount you need to mention.
Submit the Form
The last step is to submit the form. You can either mail the forms and the documentation to the address mentioned on the forms or electronically submit the file.
Final Words
Taxing can be very daunting, and there are so many things that you need to mention in your forms. All of this can become overwhelming, and there are chances that you make some mistakes. This is why the government allows people to amend their tax returns. This means they can fix the issue and resubmit it. Hence, we hope this article helped you learn how to amend your tax return and when to do it.
