Tax Prep & Planning

Amending a Tax Return: Have You Missed Out On Potential Refund Money?

What happens if you have changes to your income earning statement after you file? Or if you discover an error after you file? Whatever the case, you can make the correction by amending a tax return.

Here are some important considerations you should make, courtesy of the IRS:

In What Situation Should You Amend a Return?

You should file an amended return if you need to correct your total income, tax deductions or tax credits. In addition, you can amend your tax return if your filing status or the number of dependents claimed is incorrect.

Math errors do not require an amended return and are usually corrected by the IRS. The IRS will send you a letter notifying you of the adjustment.

If you did not include a required form or schedule with your return, the IRS will send you a letter requesting the missing documents.

When Can You File?

If you paid more tax than required, you have three years from the date you filed your original return or within two years from the date you paid the tax, whichever is later, to file an amended return and claim a refund.

If you paid less tax than required, you should file the amended return and pay the additional tax as soon as possible to limit any interest and late payment penalties. Be aware that the IRS can generally assess additional tax and penalties three years after a return is due or filed, whichever is later. However, some situations allow for a longer assessment period.

What Are The Steps for Amending a Tax Return?

Use Form 1040X, Amended U.S. Individual Income Tax Return, to amend a return. Form 1040X has three columns. Column A shows figures from the original return. Column B shows the changes you are making. Column C shows the corrected figures. There is also an area on the second page of the form where you should explain the specific changes and the reasons for the changes. If the changes involve other tax schedules or forms, attach them to the Form 1040X. Failure to do this will cause a delay in processing.

Not a Tax Expert? Who Can You Lean On For Amending a Tax Return?

Block Advisors offers Second Look, where if you bring in a previous tax return, our expert Tax Advisors will review it to see if you received the maximum refund possible on previously-filed returns. An Advisor can amend prior-year tax returns for the 2015 tax season and up to three prior years. Our Advisors prepare a tax return for you using your previously completed tax return as the source document, and conduct a interview as if it were a normal tax return.

Think you may have missed out on refund money? Find an office nearest you and schedule an appointment now.


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