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10 Tax Tips Regarding Amended Returns

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If you made a mistake on your tax return, don’t panic. We can help you with filing an amended return if you need to fix any errors. You can also amend your tax return if you forgot to claim a tax credit or deduction. Here are ten tips from the IRS if you need to amend your federal tax return.

1.  When to amend. You should amend your tax return if you need to correct your filing status, the number of dependents you claimed, or your total income. You should also amend your return to claim tax deductions or tax credits you did not claim when you filed your original return.

Note: If, as allowed by recent legislation, you plan to amend your tax year 2014 return to retroactively claim the Health Coverage Tax Credit, contact our office first for more information.

2.  When NOT to amend. In some cases, you don’t need to amend your return. The IRS usually corrects math errors when processing your original return. If you didn’t include a required form or schedule, the IRS will send you a notice via U.S. mail about the missing item.

3.  Form 1040X. This form is used to amend a federal income tax return that you filed before. Since amended returned may not be filed electronically, this form must be filled out and mailed to the IRS.

4.  More than one year.  If filing an amended return for more than one year, a separate form for each year is required. They should not be mailed together.

5.  Other forms or schedules. If your changes have to do with other tax forms or schedules, they’ll need to be attached to Form 1040X to prevent delays in processing.

6.  Amending to claim an additional refund. If you are waiting for a refund from your original tax return, you should wait to receive it before any amendments are filed. Amended returns typically take 16 weeks to process.

7.  Amending to pay additional tax. If an amendment is being filed because you owe more tax, Form 1040X should be filed as soon as possible. This will limit interest and penalty charges.

8.  Corrected Forms 1095-A. If you or anyone on your return enrolled in qualifying health care coverage through the Health Insurance Marketplace, you should have received a form 1095-A, Health Insurance Marketplace Statement. You may also have received a corrected Form 1095-A. If you filed your tax return based on the original Form 1095-A, you do not need to file an amended return based on the corrected Form 1095-A.  This is true even if you would owe additional taxes based on the new information. However, you may choose to file an amended return.

In some cases, the information on the new Form 1095-A may lower the amount of taxes you owe or increase your refund. You may also want to file an amended return if:

  • You filed and incorrectly claimed a premium tax credit, or
  • You filed an income tax return and failed to file Form 8962, Premium Tax Credit, to reconcile your advance payments of the premium tax credit.

Before amending your return, if you received a letter regarding premium tax credit or Form 8962, you should follow the instructions in your letter.

9.  When to file. To claim a refund Form 1040X must be filed no more than three years from the date you filed your original tax return. You can also file it no more than two years from the date you paid the tax, if that date is later than the three-year rule.

10. Track your return. You can track the status of your amended tax return three weeks after you file it with “Where’s My Amended Return?”.

Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. As Enrolled Agents we are authorized by the IRS to serve as a taxpayer advocate on your behalf.

Read more about Enrolled Agents and how we can help you.
What is an Enrolled Agent
Expertise of the Enrolled Agent

For additional tax tips see our other recent posts. Our blog is here to help you and anyone you know. Feel free to share any information you find and by all means, call us if we may be of assistance.

For more information, contact Elite Bookkeeping & Tax Services at (800) 416-3820 or (775) 884-6188 Address: 123 West Nye Lane, Suite 103, Carson City, NV 89706. Visit our website at www.elitebookkeeping.biz