What You Need to Know About Filing Amended Returns

Mistakes on your tax return can happen, but the good news is that you can correct them by filing an amended return. Whether you discovered an error or received new information after filing, here’s what you need to know about filing an amended tax return:

When to File an Amended Return: You should file an amended return if you need to correct any of the following on your original return:

• Incorrect filing status
• Incorrect income or deductions
• Missed credits or deductions
• Errors in reporting dependents
• Incorrect tax or refund amounts

How to File an Amended Return: To file an amended return, use IRS Form 1040-X. You’ll need to provide the original information, the corrected information, and an explanation of the changes. Attach any supporting documents, such as new W-2s or 1099s, that validate the corrections.

Deadlines for Filing: You generally have three years from the date you filed your original return or two years from the date you paid the tax, whichever is later, to file an amended return. If you’re amending a return to claim a refund, be mindful of these deadlines.

Correcting State Returns: If you need to amend your federal return, you may also need to file an amended state return. Check with your state’s tax agency for specific forms and instructions.

Potential Impact on Refunds: Filing an amended return may result in a change to your refund or tax owed. If the amended return increases your refund, the IRS will issue an additional refund. If it decreases your refund or increases your tax liability, you’ll need to pay the additional amount owed.

Avoiding Common Mistakes: When filing an amended return, double-check your calculations and ensure that all supporting documents are included. Keep copies of both your original and amended returns for your records.

Filing an amended return gives you the opportunity to correct mistakes on your tax return and ensure your taxes are accurate. Understanding when and how to file an amended return can help you avoid potential issues with the IRS and ensure you're paying the correct amount of tax. If you're unsure about the process, Peggy's Family Tax Service is here to assist you every step of the way.