Free Tax Tips

There are times when you will need to file an amended tax return. The tax form 1040X, used for filing an amended tax return, can be obtained by visiting the IRS website or by contacting the IRS.  Use Form 1040X, Amended U.S. Individual Income Tax Return, to correct a return you have already filed.

When do I have to file an amended tax return?

You should correct your tax return by filing an amended return if, after you have filed it, you discovered that:

1. You did not report some income,
2. You claimed deductions or credits you should not have claimed,
3. You did not claim deductions or credits you could have claimed, or
4. You should have claimed a different filing status. (Once you file a joint return, you cannot choose to file separate returns for that year after the due date of the return. However, an executor may be able to make this change for a deceased spouse.)

If by filing an amended return, your tax liability increases, then the IRS is likely to have a problem with your return and you may get a letter from them or even an audit. However, if you forgot to claim some tax deductions or credits that would have resulted in less tax liabilities, you may not need to file an amended return. By law, you are required to report all income, for example, but you are not required to claim all deductions and credits.

How to Completing Form 1040X?

On the tax form 1040X, enter as you originally reported them on your return:

• your income,
• deductions, and
• credits

Then enter:

• the changes you are making, and
• the corrected amounts.

Then figure the tax on the corrected amount of taxable income and the amount you owe or your refund.

When to pay taxes resulting from filing an amended return?

If you owe tax, pay the full amount with Form 1040X. The tax owed will not be subtracted from any amount you had credited to your estimated tax. If you cannot pay the full amount due with your return, you can ask to make monthly installment payments.

If you overpaid tax, you can have all or part of the overpayment refunded to you, or you can apply all or part of it to your estimated tax. If you choose to get a refund, it will be sent separately from any refund shown on your original return.

Can I efile an IRS amended return?

An amended tax return cannot be filed electronically under the e-file system.

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