In this article, we’ll highlight why amending your tax return can be a smart move, walk you through the steps involved, and share what you can expect from the process. Getting your taxes sorted can not only bring clarity but also uncover some unexpected benefits.
Reasons to amend your return
After you file your tax return, you might realize you made a mistake or forgot to include something important on your return. While the Internal Revenue Service (IRS) catches some errors, there are times when you'll need to file an amended return to set things straight.
You should consider filing an amended return if there’s a change in your:
filing status
income
deductions
credits
dependents
refund or tax you owe
However, there’s no need to amend your return if the IRS has:
notified you that they corrected errors on your return
If you’re unsure whether to amend, the IRS has a handy interview tool to help you decide if you should amend your return.
When to file an amended return
To claim a refund, you generally need to file an amended return within three years from when you submitted your original return or within two years from when you paid the tax, whichever is later. If you filed before the April 15 due date, you’ll use that tax deadline as your starting point for your two to three year period you have to amend your return.
Certain situations allow for more time to amend your return, including:
A federally declared disaster
Service in a combat zone or contingency operation
A bad debt or worthless security
A foreign tax credit or deduction
A loss or credit carryback
Note: The IRS has special rules for refunds involving net operating losses, foreign tax credits, and bad debts.
How do I file an amended return?
Ready to file an amended return? First up, grab Form 1040-X to get started! While you can’t submit your amended return through april just yet, here’s the scoop on what to do.
Be sure to submit all the same forms and schedules that you included with your original Form 1040, even if there are no adjustments to them. To keep things running smoothly, make sure to file Form 1040-X only after your original return has been accepted by the IRS. If you’re looking to claim a credit or refund, aim to file within three years of your original filing date or within two years of paying the tax, whichever comes later. Filing your amended return before the original due date? Great move! This will replace the original return, helping you dodge any interest or penalties if you owe on your amendment.
Once you've sent off your amended return, be patient and allow about 8 to 12 weeks for it to be processed, but sometimes it can take up to 16 weeks. If you’re curious about the IRS current processing time, check out their processing status dashboard for details. By keeping these things in mind, you can sail through the amendment process and enjoy a much smoother tax season.
State tax returns
When you amend your federal return, it might affect your state tax liability. For details on correcting your state tax return, you can visit your state tax agency’s website. Just a reminder: don’t attach your state tax return to your amended federal return when you send it in.
Deadline to file an amended return
The deadline for filing an amended return is typically three years after the date you submitted your original return or two years after the date you paid any taxes due on that return, whichever date is later. For example, if you filed your original return on or before April 15, 2021, you would have until April 15, 2024, to file your amended return.
When considering these deadlines, keep in mind the following important points:
Start Date: If your original return was filed after the April deadline, the three-year period begins on the actual filing date.
Payment Date: If you paid your taxes late, the two-year deadline starts from the date you made the payment, not from when you filed.
Filing Status Changes: If you amend your return to change your filing status (e.g., from married filing jointly to married filing separately), make sure that it’s done within this period.
Exceptions for Extended Deadlines: Certain situations may provide additional time to amend your return:
Federally Declared Disasters: If your area was affected by a federally declared disaster, you may receive an extension to file.
Combat Zone Service: If you served in a combat zone or contingency operation, you may have additional time to amend your return without penalty.
Bad Debts or Worthless Securities: If you are claiming a deduction for bad debts or worthless securities, special rules can extend your filing period.
Foreign Tax Credits or Deductions: If your amendment involves foreign tax credits, you may qualify for additional time.
Loss or Credit Carrybacks: If you're applying a loss or credit carryback, specific guidelines may allow for more time to amend.
For the most accurate information, always refer to the latest IRS guidelines based on your situation.
Tracking Your Amended Return
Ready for a little wait? Generally, you’ll want to allow 8 to 12 weeks for your Form 1040-X to process, but in some cases, it could take up to 16 weeks. To check where your amended return is in the process, just swing by Where's My Amended Return? on IRS.gov. Remember, it might take up to 3 weeks from the mailing date for it to show up in the system. When you’re ready to track it down, have these details handy:
Your taxpayer identification number (usually your SSN)
Your date of birth
Your ZIP or postal code
Filing an amended return can seem daunting, but understanding the process and knowing when to take action can make it much easier. Whether you are correcting errors, updating your filing status, or claiming additional deductions, ensuring your tax return is accurate is crucial for your financial well-being. By keeping track of your amended return's status and being aware of the deadlines involved, you can navigate this process with confidence and potentially secure any refunds or adjustments you’re entitled to.
This content is provided for informational purposes only and should not be construed as tax, legal, financial, accounting, or other advice. Rules and regulations vary by location and are subject to change, so please consult with an expert if you need advice specific to you.
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