- Days left

Error on Your Tax Return? How to Amend It With Form 1040X

×
Taxes form
AOL
After working so hard to get your taxes filed on time, finding out that you made a mistake on your return is just about the worst news you can possibly get, short of an IRS audit.

But making changes to your tax return isn't as hard as many people fear it'll be. Let's take a look at what you need to do to fix errors and whether filing an amended tax return is your best move.

Do You Have to Amend?

What step you should take when you discover an error depends on what kind of mistake it is. The IRS usually corrects simple mistakes like math errors, and it can often accept and process returns even when certain forms and schedules are left out. In those cases, the IRS suggests not formally amending your return, waiting instead for the IRS to go through its ordinary process and get back to you with any necessary changes.

However, the IRS suggests filing an amended return if there's a change in your filing status, income, deductions or credits. By completing Form 1040X, you can correct errors and make sure that your tax liability is correct.

How the Form 1040X Works

Form 1040X looks a lot different from most IRS forms in that it's mostly just a summary of your income, deductions, taxes, and payments. Rather than having to go through line by line in excruciating detail, all the IRS wants to know on 1040X is what the old figures were, how much the corrections changed those figures, and what the new figures are.
Unfortunately, as simple as that sounds, things get more complicated when you turn the page. On the back of the form, the IRS asks for a full explanation of why you had to amend your return, with supporting documentation and any changed or previously unfiled forms and schedules attached.

Why It's Worth Doing

Having to amend your return can be a hassle, but it's worth doing. In some cases, amending will get you a bigger refund if the error is in your favor. In others, it'll save you from having to pay penalties and interest when the IRS catches up with a mistake that led you to under-pay.

In amending your return, keep a couple things in mind. First, to claim a refund, you generally need to amend within three years of the due date of the return. Also, if you haven't gotten your original refund yet but want to amend to get even more money back from the IRS, wait until you get your original refund before amending.

To find out more about amending your tax return, visit the IRS website here.

Increase your money and finance knowledge from home

Intro to different retirement accounts

What does it mean to have a 401(k)? IRA?

View Course »

Banking Services 101

Understand your bank's services, and how to get the most from them

View Course »

TurboTax Articles

Video: Who Qualifies for an Affordable Care Act Exemption (Obamacare)?

The Affordable Care Act requires all Americans to have health insurance or pay a tax penalty. But, who qualifies for an Affordable Care Act exemption? Find out more about who qualifies for an exemption from the Affordable Care Act tax penalty, how to claim an exemption on your tax return and how the Affordable Care Act may affect your taxes with this video from TurboTax.

Video: How to Claim the Affordable Care Act Premium Tax Credit (Obamacare)

The Affordable Care Act Premium Tax Credit is a new refundable tax credit that can lower your monthly health insurance premiums. If you qualify for the tax credit, you can claim the Premium Tax Credit throughout the year to lower your monthly health insurance premiums, or claim the credit with your tax return to either lower your overall tax bill or increase your tax refund.

Deducting Summer Camps and Daycare with the Child and Dependent Care Credit

If you paid a daycare center, babysitter, summer camp, or other care provider to care for a qualifying child under age 13 or a disabled dependent of any age, you may qualify for a tax credit of up to up to 35 percent of qualifying expenses of $3,000 for one child or dependent, or up to $6,000 for two or more children or dependents.

What Is Schedule H: Household Employment Taxes

If you hire people to do work around your house on a regular basis, they might be considered household employees. Being an employer comes with some responsibilities for paying and reporting employment taxes, which includes filing a Schedule H with your federal tax return. But even if you have household employees, filing Schedule H is required only if the total wages you pay them is more than certain threshold amounts specified by federal tax law.

Add a Comment

*0 / 3000 Character Maximum

1 Comment

Filter by:
jevonbellam

up to I saw the bank draft four $9876, I did not believe that my mom in-law was like actualey making money part time from there labtop.. there dads buddy had bean doing this 4 only ten months and at present paid the dept on there place and got a brand new Maserati. we looked here, FAB33.COM

May 02 2013 at 2:57 AM Report abuse rate up rate down Reply