When And How To File Amended Tax Returns

Amended tax returns are returns that are filed to make some corrections to the tax returns from last year. The amended tax returns could be used for correcting mistakes & claim more beneficial tax filing. 

Plus, for instance, one may select to file the amended tax returns in the instances of wrongly reported earnings and tax credits. However, mathematical mistakes will not need any amendments, because the IRS will automatically correct for these mistakes.

Breaking Down the 'Amended Returns'

Every taxpayer must file the taxes yearly for the last tax year. The taxpayers might feel that they have made some errors while filling the tax forms out or their circumstances are now changed right after they’ve mailed or submitted the returns. They have been already accepted by the current government. In case this occurs then Internal Revenue Service or IRS has given a way for such people to re-do the taxes by giving the amended tax returns form that is Form 1040X on IRS site. 

Along with the Form 1040X, the Form 1040 (irrespective of whether an individual has used 1040EZ or 1040A in order to file the original tax returns or not) & some other supporting schedules or forms must be filled & sent to IRS. The amended tax returns could be even filed after a deadline of tax filing.

All errors do not require to be amended by using its form. Some mathematical error, for instance, would be checked & corrected by IRS in the end. While this occurs, the refund owed would be quickly adjusted & the extra tax liabilities due would be actually billed to that taxpayer. In an event which the individual gets failed to add the required schedule or form in their submitted tax returns, the IRS would send letter requesting about the missing info that is mailed to the office.

When to File the Amended Tax Returns

The amended tax returns need to be typically filed by the taxpayer when:

• Filing status of the taxpayer for tax year altered or is wrongly entered. For instance, in case the individual has filed as a single but then gets married on last moments of that tax year then he would have to amend the returns by filing taxes under an appropriate status that is married filing separately or jointly.
• A number of the dependents that are claimed is not accurate. The amended tax return would be required if the taxpayer has to claim some further dependents or decrease dependents which were claimed previously.
• The tax credits & deductions are claimed incorrectly or are not actually claimed. In such case, taxpayer might have felt that he has qualified for the deduction or credit and might need to file the amended tax returns for reflecting this.
• Income that is reported for a tax year is not correct. In case the taxpayer gets further tax documents for a tax year, for instance, the Form 1099 has arrived in the mail after tax deadline he might file the amended tax returns to report additional income.
• Taxpayer feels that he actually owes taxes far more than he paid. In order to avoid having hit along with the penalty from the govt., he’d file the amended tax returns with IRS.

Form the 1040X has 3 columns that is A, B, & C. Under the column A, a figure that is reported in original or previous-amended taxation form is also recorded here. A taxpayer would have to input correct or adjusted number in the column C. A difference between the columns A & C is also reflected in the column B. Adjustments that are made to the tax return would result in the balance due, tax refund, or without tax change. Plus, the taxpayer must explain what alterations she or he is actually making & reasons to make every change in the section given on the back of a form 1040X. The taxpayer should take suggestions from his or her accountant.

Plus, drawbacks with the filing of amended tax returns are that the Form 1040X could not be electronically submitted. Even after filling the form out, a taxpayer needs to mail his or her document on the paper to IRS Center which has processed original tax form. The amended tax return is processed manually and could take 14 months to be processed via the IRS.