According to the Internal Revenue Service (IRS), American taxpayers file around 160 million tax returns per year—with an average of 3.2 million of those being amended returns. If you've recently realized that you made a mistake on a tax return that you've already filed, you might fall into this small yet notable category.
The good news? The process of filing an amended federal tax return is easier than you might think—and you can file up to three per year. While it's always best to submit a correct return the first time around, the process of amending a return doesn't have to be a hassle. There are just a few things you should know before you get started.
Why Might You Need to Amend a Tax Return?
The most common reason you may need to file an amended tax return is making the realization that you misreported your income. Often, this will occur when a taxpayer is eager to file and submit their return in the hopes of receiving a faster refund—only to find that they failed to include an income statement (such as a W2 or 1099) that showed up in the mail later.
In other cases, an amended return may be necessary for taxpayers who realize they have failed to claim an important credit or deduction for which they were eligible. In this case, amending an existing return could lead to a larger refund.
Some other potential reasons to file an amended tax return include:
- Forgetting to attach required documentation or forms.
- Forgetting to update filing status.
- Forgetting to include dependents on a tax return.
If you simply made a miscalculation on your tax return, there is usually no need to amend—as these will be automatically caught and corrected when the IRS processes your return. At that point, the IRS will send you a corrected bill or automatically adjust your refund amount. Keep in mind that if your math error led to underpayment of taxes, you may also be responsible for interest and/or late fees on any unpaid amount.
What Are the Time Limitations on Filing an Amended Return?
Taxpayers should also be aware that there are strict time limitations on filing a return, especially if you hope to receive an increased refund as a result. According to the IRS, an amended return needs to be filed within three years from the date of the original filing or two years from the date the tax was paid (whichever is later).
There are some special circumstances that may apply here, such as if you are filing an amended return with net operating losses or live in a disaster relief zone. In these cases, you may have longer to file an amended return, but it may be helpful to speak with a tax professional.
How to File an Amended Return Through the IRS
To get started with an amended return, you'll need to use Form 1040-X. If your initial return (the one that needs to be corrected) has yet to be accepted or processed by the IRS, it's generally best to wait until this has occurred before filing Form 1040-X. You can check on the status of your tax return by logging into your online IRS account or using the IRS tracker without signing in (you'll need to provide your SSN or ITIN). You can also check on the status of your return by calling the IRS' automated hotline at (800) 829-1954 or using the IRS mobile app.
If you filed an electronic return through a third-party service (such as TurboTax), you should also have received a notification via email or text when your return was transmitted and again when/if it was accepted by the IRS.
In addition to filling out every column of Form 1040-X, you may also need to attach supporting documents (such as income statements) before filing. Generally, you can submit your amended return electronically or by mail, depending on your own preferences.
What About State Returns?
Keep in mind, too, that amending your federal return could affect your state taxes as well—especially if you're updating your income. Be sure to revisit your state taxes to ensure that everything is correct and to follow the process of filing an amended return through your state, if needed. The process and requirements for amending a state return can vary, so this is another area where it may be useful to have guidance from a tax professional.
Tips and Tricks for Amending a Tax Return
Once you've completed and filed your amended return, keep in mind that it could take up to 16 weeks for the IRS to process it. However, you can track the status of your amended return anytime using this convenient tool on the IRS website. Typically, you'll be able to see the status of your return about three weeks after it has been submitted—so be sure to check back regularly if it hasn't been updated yet.
When in Doubt, Consult a Tax Professional
Realizing you made a mistake on your tax return can be stressful, but it doesn't have to be the end of the world. Form 1040-X exists specifically for this reason, and filling it out should only take a few minutes of your time. Once your amended return is accepted, you can pay any remaining tax debt or wait for an additional refund to hit your bank account. Either way, you'll be able to rest assured that your return is completed to the best of your abilities.
If you have any questions about your taxes or need help filing an amended return, please contact our Tax Services team.