Discovering that your tax return requires amendments can be daunting, but making corrections is a necessary process to ensure compliance with tax laws and accurate reporting of income and deductions. The Internal Revenue Service (IRS) allows taxpayers to amend their returns if they notice errors or omissions after their original submission. Understanding when and how to amend your tax return is crucial to avoid potential penalties and to possibly claim a refund you may have missed initially. In this article, we will explore the ins and outs of amended tax returns, from identifying the need to amend to tracking the status of your submission.
Understanding the Basics of Amended Tax Returns: What You Need to Know
Filing an amended tax return requires submitting Form 1040-X to the IRS, which updates any mistakes in a previously filed return. While minor math errors don’t require an amendment, bigger issues like unreported income or incorrect deductions do. It’s best to wait until the original return is fully processed before submitting changes to avoid delays.
Taxpayers have up to three years from filing or two years from tax payment to amend their return. If you’re wondering, “my amended return says completed when will I receive the check,” processing times can vary, but the IRS typically takes up to 16 weeks to issue refunds.
Key Reasons to Amend Your Tax Return
Taxpayers may need to file an amended tax return due to various reasons. One common reason is discovering omitted income, such as a misplaced W-2 or forgotten freelance job. This can significantly alter tax liability. Another reason is not claiming eligible deductions or credits, such as education credits or charity contributions.
Life events like marriage, divorce, or changing dependents can also impact tax returns, requiring amendments to reflect accurate information. Errors in the original filing, such as incorrect taxpayer information or tax computation mistakes, can have legal and financial repercussions if not corrected promptly.
Step-by-Step Guide to Filing an Amended Return with the IRS
The amendment process begins with reviewing a tax return and identifying necessary changes. The IRS Form 1040-X, the official document for amendments, is obtained from the IRS website or a tax professional. The form consists of three columns: A, reporting the original return figures, B, stating the changes, and C, showing corrected amounts.
It is crucial to be precise and thorough in completing these sections to avoid issues. Taxpayers must also include any forms or schedules impacted by the changes, such as Schedule A, and provide a clear explanation of the changes. Submitting the 1040-X is done through mail, as electronic submissions are not widely available. All documents must be signed and dated before being sent to the designated IRS office.
Common Mistakes to Avoid When Amending Your Tax Return
The amendment process often involves several errors, such as not reviewing the entire tax return for errors, forgetting to include supplemental documentation, and ignoring state tax return amendments. These errors can slow down the process and can lead to delays or denial of the amendments.
It is also crucial to check state tax regulations and submit amendments as needed to stay in compliance. Not keeping a copy of the amended return and all supporting documents can cause issues if issues arise later. It is essential to thoroughly review the entire return before submitting the amendment.
How to Track the Status of Your Amended Return and What to Expect After Submission
The IRS offers a tool called “Where’s My Amended Return?” on their website to track the status of an amended tax return. It typically takes three weeks for an amended return to appear in the system. Amended returns take longer to process than regular returns, often taking up to 16 weeks. Patience is required during this period, as the service handles numerous amendments, especially during peak tax season.
If you expect an additional refund due to the amendment, it will come separately from any refund received from your original tax return and typically arrives as a paper check. Many taxpayers worry about when they will receive their check after amending a return, but tracking the amendment status and understanding the usual timelines can help.
Overall, filing an amended tax return can be a straightforward process when armed with the right knowledge and attention to detail. By taking the necessary steps and avoiding common pitfalls, you can confidently navigate the amendment process to ensure your tax records reflect accurate information. And, with resources available to track the status of your amended return, you can be well-informed on what to expect every step of the way.