Discovering a mistake on your tax return doesn’t mean that you need to immediately panic. In most cases, errors made on your taxes can be fixed by filling out Form 1040-X, Amended U.S. Individual Income Tax Return.
Optima Tax Relief looks into common reasons why people may need to file an amended return:
- Information on a tax return was entered incorrectly.
- Claiming credits that a taxpayer wasn’t eligible to claim.
- Claiming deductions incorrectly.
The IRS can also correct any math or clerical errors on a tax return and may even accept returns without certain required forms or schedules. In any of these cases, a taxpayer is not required to submit an amended tax return.
Taxpayers who are required to file an amended tax return should know the following:
- Taxpayers can now file an electronic Form 1040-X only for the 2019 tax year. Forms 1040 and 1040-SR returns can also be amended electronically if the original 2019 tax return was also filed electronically.
- For taxpayers that filed a paper 1040-X, they will need to mail it to the IRS. The IRS provides locations on where an amended return can be filed based on location on their website. Taxpayers filing form 1040-X in response to an IRS notice should mail it to the address indicated on the notice.
- Taxpayers who chose not to file their 1040-X electronically or don’t have the option to file electronically should complete a paper form 1040-X.
- Tax filers should attach any forms or schedules that have been affected by the change.
- Form 1040-X should be filed separately for each tax year. Every amended return should be placed in its own envelope. The year of the original return tax year should be entered at the top of Form 1040-X.
- Additional taxes should be paid in order to limit interest and penalties.
- Taxpayers should file Form 1040-X to claim their refund within three years from the date they filed their original tax return.