Monday, May 28, 2018

Amended Tax Returns and What You Need to Know


Tax time is stressful for everyone. And all that stress can sometimes lead to mistakes in filing. If you’ve sent off your return and then notice you’ve made an error, don’t panic.  You can correct your mistake by filing what is known as an “amended return.”   


When to Amend
One of the main reasons to amend your tax return is if you’ve underreported your income. Not reporting your full income is an offense and can get you in trouble with the IRS, so you will definitely want to report this

You should also file an amended return if you missed out on some tax credits or tax deductions that would have saved you money.

Form 1040X
Most of the time, when you need to file a tax return, it’s as simple as filling out Form 1040 X.  You can use this form if your original tax form (the one you’re correcting) was:
·        Form 1040
·        Form 1040A
·        Form 1040EZ
·        Form 1040EZ-T
·        Form 1040NR
·        Form 1040NR-EZ
Just remember that amended forms have to be filed the old-fashioned way, i.e. on paper, so make sure you don’t waste any time in getting these forms filled out and done. It’s also not a bad idea to have a tax professional check over your amended form to protect you against any further mistakes.

Time Limits
One final thing to keep in mind is that there are time limits related to how long you have to file your amended tax return.

You have up to three years after filing your original return to get your amended return in. If you’ve already paid the IRS your taxes, you have two years after paying.
That may sound like a lot of time, but it goes by quickly, so be sure to fix errors right away.
And, remember, it is always better to avoid errors in the first place by having a professional prepare your taxes.

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