What Is an Amended Return?

An amended return is a form filed with the Internal Revenue Service (IRS) in order to make corrections to a tax return from a previous year. An amended return can correct errors and claim a more advantageous tax status, such as a refund. For example, one might choose to file an amended return in instances of misreported earnings or 澳洲幸运5官方开奖结果体彩网:tax credits. Mathematical errors, however, do not require amendments because the IRS automatically corrects for such errors when processing the tax return.

Who Should File an Amended Return?

All taxpayers are required to file their taxes annually for the previous tax year. Taxpayers may realize that they made a mistake in filling out their tax forms, or their circumstances may have changed after they have submitted or mailed a return that has been accepted by the government. If this occurs, the 澳洲幸运5官方开奖结果体彩网:Internal Revenue Service (IRS) has provided a way for these individuals to redo their taxes by providing an amended return form, 澳洲幸运5官方开奖结果体彩网:Form 1040-X, on the IRS website.

Not all errors need amending by the form. The IRS will spot and correct a mathematical error, for example, when the initial tax return is sent in for processing. When this happens, any refund owed will be adjusted and any extra tax liability due will be billed to the taxpayer. In the event that the individual fails to include a required form or schedule in their submitted original tax return, the IRS will send a letter requesting that they mail the missing information to one of their offices.

When to File an Amended Return

A taxpayer must file an amended return if:

• The taxpayer’s 澳洲幸运5官方开奖结果体彩网:filing status for the tax year changed or was incorrectly entered. For example, if an individual 澳洲幸运5官方开奖结果体彩网:filed as single but actually got married on the last day of the tax year (typically Dec. 31), they will need to amend their return by filing their taxes under the appropriate status—澳洲幸运5官方开奖结果体彩网:married filing jointly (MFJ) or 澳洲幸运5官方开奖结果体彩网:married filing separately (MFS).
• The number of 澳洲幸运5官方开奖结果体彩网:dependents claimed is inaccurate. An amended return will be necessary if a taxpayer needs to claim additional dependents or remove dependents who were previously claimed. For example, a couple may have included a baby born in January before taxes were filed in April on the prior year's tax return. That baby cannot be included on the previous year's tax return because they were not born before the end of the tax year.
• Tax credits and 澳洲幸运5官方开奖结果体彩网:deductions were claimed incorrectly or were not claimed. In the latter case, the taxpayer may have realized that they qualified for a credit or deduction and may want to file an amended return to reflect this.
• The income reported for the tax year was incorrect. If a taxpayer receives additional tax documents for the tax year (say a Form 1099 or a K-1 arrives in the mail after the tax deadline), they may file an amended tax return to report the additional income.
• Deductibility of certain expenses changes as a result of legislation changes. Sometimes, legislation will come through after a taxpayer has filed a return that affects the deductibility of certain expenses. For example, the 澳洲幸运5官方开奖结果体彩网:deduction for private mortgage insur🔴ance (PMI) originally expired on Dec. 31, 2017, due to the 澳洲幸运5官方开奖结果体彩网:Tax Cuts and Jobs Act of 2017. The Consolidated Appropriations Act, signed into law in December 2019, extended the deduction through Dec. 31, 2020. This made the deduction available for the 2019 and 2020 tax years and retroactive for the 2018 tax year.
• Tax relief due to a natural disaster changes the taxpayer's tax liability. This is a common issue for taxpayers who have been affected by a natural disaster, especially one in the later part of the tax year. The government frequently offers tax relief for those affected by natural disasters, but legislation may take longer to finalize than the typical tax season window allows. Taxpayers should pay their full tax liability as it sits when the tax return is due. If legislation changes, an amended return can be filed to reclaim any refund owed to them due to natural disaster tax relief.
• The taxpayer realizes that they owe more taxes than they actually paid. To avoid getting hit with a penalty from the government, they can file an amended return with the IRS.

How to Amend a Tax Return

Form 1040-X has three columns: A, B, and C. Under column A, the figure that was reported in the original or last-amended tax form is recorded. The taxpayer will need to input the adjusted number in column C. The difference between columns A and C is refl🀅ected in column B. The adjustments made to a tax return will either result in a tax refund, balance due, or no tax change. The taxpayer also has to explain what changes they are making and the reasons for making each change in a section provided on the back of Form 1040-X.

The Bottom Line

To file an amended tax return, use Form 1040-X, which is available on the IRS's website. There are several reasons why you might file an amended return, but an mathematical error shouldn't be one of them: the IRS will spot the error and fix it. If you've misreported the number of dependents, for example, or underreported income, then use Form 1040-X to file an amended return.