It could happen to anyone. Say you’ve gathered all of your tax return information. You’ve gathered all of your W-2s, 1099s, receipts and statements. You’ve crunched the numbers, double checked your calculations and mailed the return or used an eFile provider. Then you realize you’ve left something out, another form is suddenly accessible in the mail or you realize you chose the incorrect filing status. Don’t worry about it; you might be in a position to amend your tax return.
Revising your tax return is simple and could even be done several years after you filed the initial return. You need to use earnings together with a new 1040 in addition to the required schedules and forms. In the case that you’ve used an online tax preparation provider, you are able to log back in and complete the 1040X in their program. The catch that the government isn’t built to accept amended returns by eFile and you’ll need to print out your return and mail it in.
It’s not necessary to amend a return for an error in calculations. The government will automatically correct any math errors and get a brand new return for you. You need to file an amended return in order to:
1. Report extra revenue
2. Make changes to deductions
3. Report additional withholding
4. Report your correct filing status
5. Claim tax credits you missed
6. Remove dependents you claimed
7. Claim additional dependents
The method to amend your return:
Amending your return is much easier than it used to be. Altering your original return to include correct information can easily become your new return. The entries you’re making on this form will be the amounts you should have reported on your own original return. The IRS says many individuals believe it is easier to fill in Form 1040X by figuring the correct amounts in the margin with the return they are amending. First, get the return you are amending, a blank Form 1040X and related instructions for any supporting forms, schedules or worksheets. It’s also smart to have the instructions for the return you’re amending, since exemption and deduction amounts alter from year to year.
On Line A of Form 1040X report your correct filing status even if it is not changing. Line B tells the government which year you’re filing an amendment for and line C tells the IRS why you are filing an amended return. Be very specific here, but be brief; state what you really are reporting, for instance reporting further income and withholding from a W-2. Mention your reason for reporting it, for example, you forgot to add it on your original return. Also mention what changes occurred as a result; “this resulted in changes to my AGI, taxable income, total tax and refund”.
You may then complete the rest of the form with all the correct amounts you are reporting; include income, deductions, tax liability, payments, and refund or amount you owe. On page two of the form you will report your exemptions as long as you are generating changes. You should file an additional 1040X for each and every return you are amending. The government generally takes a few months to review amended tax returns. Remember if you amend your federal return you should also update your state return. Most states have an equivalent form to the original, also ending in an X.
If you are looking for information or have questions about return we’d like to encourage you to visit our website at Cohesive Tax. In detail, we can provide you with many tax preparing and business methods so contact us now and let us help prepare you for the not too distant future. On our website you can also use the resources and information available to your or you can get in touch with one of our specialists at amending a tax return business advisors and/or Enrolled Agents who’ll help you with the tools you’ll need for amending a tax return.