December 4, 2023

How can you correct your taxes with an amended tax return?

American taxpayers often make mistakes while filing taxes that can cost them a significant part of their tax deductions and returns. These mistakes often include missing out on several tax credits and deductions that need to be amended from the taxpayer’s side. Remember that they must not file an amended tax return form for clerical mistakes, as the IRS will take care of them for you. Let us understand how and when you can file an amended tax return. It must also be noted that there is a fixed time limit to filing an amended tax return.

When should you file an amended tax return?

To err is human. This proverb by Alexander Pope proves to be true in every aspect of life. Taxpayers often make mistakes while filing taxes, which is more common than you think. Keeping this in mind, the IRS has made provisions for taxpayers to submit an amended tax return, which can help them account for missed tax savings. Let us look at some of the tax filing mistakes that need to be revised in case you are guilty of making them while filing for your tax return.

  1. If you find out that you forgot to mention a tax deduction or credit while filing your taxes for the year, you can submit an amended tax return to the IRS.
  2. You can also go ahead and file an amendment request if you have mistakenly filed your taxes under an inappropriate filing status.
  3. In case you forgot to mention a dependent person while filing your taxes, or if you need to remove a dependent from your tax return, you can file for an amendment.
  4. If you missed mentioning some taxable income while filing your taxes and fail to report it within the time limit suggested by the IRS, you might have to incur a fine. You can avoid this by mentioning the additional taxable income on the suitable form.
  5. Filing an expense, credit, or deduction you are not eligible for can also land you in trouble with the IRS. A taxpayer can file an amended tax return to avoid such a scenario.

Filing an amended tax return for math and clerical errors is not suggested, as the IRS will correct them for you. If you made a math mistake, you would receive a bill in the mail related to an additional tax due or a refund if your tax filing mistakes are in your favor. It is suggested that you file an amended tax return only when you have received the returns you have already filed for. Once you have received the tax returns for the year, you can be sure that your previous tax filing has been validated. If you send your amended tax returns before that, it might lead to both tax filings needing clarification, which is not desirable.

However, the IRS has set a fixed time limit for filing amended tax returns that last up to three years after the deadline for original tax filing for the year or within two years from the day of tax payment for that year. You must complete this window to file an amended tax return for missed deductibles or credits.

How you can correct your taxes with an amended tax return

To ensure that the IRS considers the amended taxes you have filed, it is suggested that you follow the below-mentioned steps:

1. Gather all the required documentsYou must gather all the documents that might be needed to file an amended tax return before the initiation of the process. Collect the original documents and any new documents you can account for in the amended tax return filing. Different forms need to be filled out to address different tax filing mistakes. For example, if you need to make changes to the reported taxable income, you can do so with the help of a W-2 or a 1099 form. However, you need to enlist a new deduction. In that case, you need documents that support the deduction, in addition to the amended Form 1098 or form 1098-T, to claim a credit related to education.

2.  Get the appropriate forms for the amendment you intend to carry outYou must ensure that you have the appropriate forms to file tax amendments. It is suggested that you get form 1040-X. You must also get all the forms affected by adding or removing new deductions or credits. To make changes to your itemized deductions, you should get Schedule A while adding new interests and income that is received in the form of dividends, and you would require a Schedule B. To make changes to the revenue or expenses related to a business, you must get schedule C or schedule SE, while modifying capital gains or losses requires you to get Schedule D and Form 8949.

3. Please fill out Form 1040-X carefullyIt is suggested that you carefully fill out the three columns available in Form 1040-X. In column A you are required to mention the taxes reported earlier, which you can find in the tax return document you received. The second column allows taxpayers to mention the amount that needs to be added or deducted from the original numbers. If you need to amend your gross income by $1000, you must mention the amount in Line 1, Column B. The third and last columns should contain the correct amount, which can be obtained by adding the numbers in the first and second columns. Once you are done with making these amendments, it is required for you to explain why you are making amendmentsammendments in Part 3 of Form 1040-X.

4. Submit the amended tax returnYou can mail the documents to the address provided in the instructions or file your taxes electronically by downloading Form 1040-X and attaching the documents supporting the changes you intend to make to your taxes. If your amended taxes lead to a higher tax bill, you must pay the extra tax bill through a check in the mail or by logging on to the official IRS website. By paying the extra charges immediately, you can avoid extra charges in the form of interest or penalties.

Therefore, making mistakes while filing your tax return is not as grave as a mistake and can be amended easily if caught on time. You must get Form 1040-X to file for an amended tax return and other supporting documents. However, one must keep in mind that this does require extra work, and it is desired that the taxpayer does not make tax filing mistakes. However, if you have already done the deed, you can easily sort out the errors or get some tax professionals to do the same. However, you can also choose another alternative, seek professional help while filing your tax returns, and avoid making mistakes. NSKT Global has a dedicated team of qualified and trained professionals to help American taxpayers during every step of tax filing. This eliminates any chances of making errors on your tax returns and avoids the hassle of using Form 1040-X. You can click through to the official website of NSKT Global, and learn how you can benefit from the tax services offered by a well-qualified and dedicated team of professionals.

Last Updated on 1 year by Editor

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