File an Amended Return to Correct the Mistakes on Your Taxes

The complexities of the U.S. tax system means that there isn’t a one-size-fits-all reason for filing an amended tax return with the IRS.

Here are a few situations that usually mean you should file an amendment:

You realized you missed out on claiming a tax deduction or credit, like the Child and Dependent Care Tax Credit.
You claimed the wrong tax filing status by mistake.
You need to add or remove a dependent.
You forgot to claim taxable income on your tax return.

This is a short list of examples. Remember all cases are different.

Filing IRS Form 1040-X

You can work with your tax professional to file an amended return, using Form 1040-X, Amended U.S. Individual Income Tax Return. You should amend your return if you reported certain items incorrectly on the original return, such as filing status, dependents, total income, deductions, or credits, as mentioned above.

What documents might I need?

To correct the situation, gather all the tax information you’ll need. If you are filing your amended return, you should attach any new sources of income documents such as a W-2, a 1099-R with withholding, or a W-2G with withholding. In addition, include any new or changed forms, other than Form 1040 or 1040-SR.

Any other forms related to childcare, healthcare coverage, and other important documents will be necessary, too. As always, a tax professional can help you identify all your needed documents.

Do I need to wait for an IRS notice to file an amended tax return?

No. File an amended return as soon as you determine there was an error. The longer you wait, the more potential penalties and interest can accumulate.

If the changes result in a balance due, pay the bill with the return and the IRS will bill you for any penalty and/or interest, if applicable. If you are eligible for a refund, the IRS may pay you interest.

What if I received a notice from the IRS that I made a mistake?

If you receive a notice of change from the IRS and you agree with their changes, do not send an amended return with the changes. Just follow the instructions in the letter to resolve the issue. DO keep a copy of the notice in your file so you can start the following year’s return with the correct information.

If you receive a notice of change from the IRS but you disagree and feel the original return is correct, do not send an amended return. Respond to the IRS explaining why your original return is correct.

If you receive a notice of change from the IRS and you partially agree, send an amended return to clarify which changes you don’t agree with. A tax professional will help you understand and decide on the right option for you.

What about tax liens and levies?

It is crucial to fix any tax return errors or send back any paperwork disagreeing with the IRS assessment as soon as possible, so it doesn’t become an even larger issue—like a tax lien or levy.

A lien occurs when the IRS assesses that you owe money, called a tax liability (or a tax bill) against you and your spouse, and sends you a bill. Typically, it gets to a lien situation if you refuse to pay, and a levy if you neglect or ignore the notice or simply refuse to enter into an agreement to pay the IRS.
A levy is a legal seizure of your property to satisfy taxes you owe. A levy can take your property or property someone else holds for you such as wages, retirement accounts, bank accounts, etc., and in very rare circumstances, can even seize and sell your vehicle(s), real estate, and other personal property.

Are there IRS payment plans available

If you amend your tax return and then owe the IRS more money, but don’t have the funds to pay the bill, you can enter into an Installment Agreement with the IRS. This is a payment plan typically categorized as short or long term.

Is the deadline to file an amended tax return different?

IRS Form 1040X can be filed at any time. However, if you catch an error, omission, or other discrepancy in a filed return prior to the filing deadline, you may be able to avoid additional penalties and interest by filing Form 1040X before the filing deadline.

If you want to claim a refund from a prior tax year in which you already filed, you must file Form 1040X no later than three years after you filed the original tax return, or two years after you paid the original tax amount due from that return.

The IRS can take up to 16 weeks, or more, to process paper and electronic amended returns. To track the status of an amended return, you can use the “Where’s My Amended Return?” tool on the IRS website.

You don’t want to pay more—or less—than you should. Questions? We are always here

Do I have to file an amended state tax return also?

If you filed a state(s) tax return, you should check to see if any federal changes are needed on your state tax return as well.

You don’t want to pay more—or less—than you should. Questions? We are always here for you. A Tax Pro can guide you through the right next steps and can help you avoid needing to submit a future amendment. Speak with your Jackson Hewitt Tax Pro today about filing an amendment.