Filing for an Amended Tax Return

You may face serious IRS problems in the future for discrepancies found in your tax returns. Hence, if you discovered some mistakes on your tax return, may it be last year’s or the one you recently sent, it is always in your best interest to file an amended tax return. If the errors are purely mathematical in nature, the IRS simply corrects these and you don’t need to file for an amended tax return. However, certain cases require that you file an amended tax return as doing otherwise could give you problems.

Very common errors are discrepancies in deductions or credits, total income, dependents and filing status. Bear in mind, however, that sending a corrected tax return may lead you to get a refund or incur you any penalties.

Form 1040x, Amended U.S. Individual Income Tax Return, is used to file for an amended tax return. This will correct the tax return submitted through Forms 1040EZ, 1040A, or 1040. Whether you originally filed through e-filing formats or simply sent it through the mail, you must submit amended tax return through the mail. The IRS’ e-file systems are not yet capable of receiving electronic 1040x forms. Essentially, the 1040X simply asks for any data that need to be amended and the reasons for the adjustments to your original tax return figures.

Correcting filing status are among the most common reasons why people resort to amended tax returns. Form 1040x allows you to claim the deductions that are otherwise taken from you if you filed under the wrong status. A common change that is often noted on amended tax forms is a change from a single filer to a head of household. The amount of deduction available to those who qualify as head of household is significantly different from those who are single filers.

You have the ability to file an amended return anytime within the three years following that specific tax return’s filing date. However, only those who have paid all their tax bills on the tax return in question will qualify for this three year grace period. If the tax bill was not fully paid, then the grace period is decreased to only two years.

If you have recently filed and you have discovered an error, you may want to wait until you get your refund and all of the paperwork for that tax return has been processed before filing an amended tax return. This eliminates the possibilities of confusion regarding tax records and duplication of paperwork, which generally, pose a serious IRS problem.

On the other side, there are cases when filing for an amended tax return will incur you costs, rather than give you refunds. No matter how tempting the choice of simply running away is, honesty and filing for an amended tax return will always pay off in the long run. This will truly avoid future problems as the IRS will eventually find out about this mistake. Also, there is also a good chance that the IRS will charge lesser fees to mistakes brought to their attention.

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