Did you see a mistake on your tax return? You may have forgotten about a little-known deduction or an odd job that didn’t pay much. Unless you’re an expert CPA, these errors can be hard to avoid. That’s why the IRS allows taxpayers to file an amended tax return to correct any errors or omissions.
If you’re ready to fix your tax mistakes, let’s discuss what to do.
Determine If an Amended Tax Return Is Necessary
Not all mistakes on your tax return require an official correction. For instance, the IRS will take care of simple math errors.
Here are some situations where you should file an amended return:
- You received a corrected W-2 or 1099 form after filing your original return and this results in a change in your income.
- You forgot to report income. If you made at least $600, the IRS wants to know about it.
- You claimed deductions or credits you were not eligible for or forgot about the ones that did apply.
Why Fix Your Mistake?
You might be tempted to ignore your tax mistakes, especially if they seem minor. However, making the correction can actually help your finances. That’s because when you file an amended tax return, you also:
- Pay the correct taxes: When your taxes are correct, so is your tax bill. By contrast, mistakes put you at risk of under or overpaying. Underpaying exposes you to penalties and interest, while paying too much taxes means you’re giving the government an interest-free loan.
- Avoid future issues: If the IRS notices discrepancies in your tax return, you might be targeted for an audit. Filing an amended tax return helps avoid these issues and decreases the likelihood of receiving a dreaded IRS notice.
Steps to File an Amended Tax Return
Once you’ve determined that filing an amended makes sense, take these steps to get back on track with the IRS:
1. Gather Your Documents
Before starting, make sure you have the necessary paperwork. You’ll need:
- A copy of your original tax return
- Any corrected forms (such as a W-2 or 1099)
2. Fill Out Form 1040X
Next, it’s time to fill out Form 1040X – Amended U.S. Individual Income Tax Return. You can download it for free on the IRS website. You’ll need to indicate your reason for filing an amended return and record your original and corrected figures.
3. Review the Changes
Making a mistake on your amended return can cause even more problems. That’s why it’s smart to review your changes and make sure they’re correct before submitting the form. If you’re unsure about anything, speak to one of our tax experts at Kondler & Associates, CPAs.
4. Mail Your Form
Unfortunately, amended returns cannot be e-filed. You’ll need to print and physically mail the completed form to the IRS. Remember to include copies of any supporting documents.
What Happens Next?
After you mail your amended return, be patient. You might have to wait up to 20 weeks to get a response from the IRS. If they have any questions or need clarification, they will contact you through mail. Otherwise, you should receive a refund if you overpaid or be required to pay additional taxes if you underpaid.
Conclusion
Filing an amended tax return is the only way to fix your taxes if you make a mistake on your original return. The new filing can save you from potential penalties, interest, and even audits. By following the necessary steps and being thorough, you can easily correct any errors and keep your finances in good standing with the IRS.
For more guidance on taxes and financial planning, reach out to our team at Kondler & Associates, CPAs today.
