What is an amended tax return?
Despite the best tax filing efforts, mistakes can still happen. If youve made an error on a tax return thats already been submitted, correct it by filing an amended return. Heres everything you need to know about how to file an amended tax return. Understanding amended tax returns  An amended return is an official tax form filed with the intention of correcting a previously filed tax return. It can fulfill a few different purposes, from correcting errors to claiming refunds or choosing a different tax status. While the IRS automatically corrects mathematical mistakes, amended returns can change more significant errors like misreported earnings. How amended returns work  In the United States, all taxpayers must file annual taxes covering earnings from the previous tax year. If youve already submitted your tax return and then receive additional information, or discover that youve made an error, you can then file a secondary, amended tax return. The amended return form is on the IRS website, listed as Form 1040X. As weve mentioned above, math errors are corrected by the IRS. Youll be informed of any adjustments made to your figures which could lead to a change in tax liability or refund owed. Similarly, the IRS will let you know if theres missing information in your original tax return. When you should file an amended return  There are many circumstances where you might need to file an amended return:  Your filing status for the year changed or was entered incorrectly. Youve entered the incorrect number of dependents. If you realize you claimed tax deductions or credits incorrectly due to a change in expenses, this should be amended. You might also realize that youre eligible for certain credits after youve already filed an original return. Sometimes, 1099 forms arrive after the first day of the new tax year. If your income-related forms arrive late, you may need to make adjustments. You might realize that you owe more taxes than youve paid. File an amended return to avoid paying penalties for this additional tax liability. How to file an amended tax return  The first step to figuring out how to file an amended tax return is to visit the IRS website, where youll find Form 1040X. The form has three columns. Under column A, you can enter the figures that were reported in the original tax return. Column C will show the adjusted figures. The difference between these two figures should be reflected in column B. In some cases, such as changes to your filing status, you might not have any change in your tax refund or balance due. Theres also a section on the 1040X for you to provide an explanation for the changes that youre making. Its helpful to give the IRS detailed information to avoid any confusion and check amended return information carefully. This includes copies of forms or schedules that you have changed or didnt include with the original return. Where to send amended tax returns  After youve completed the 1040X, check amended return details carefully for accuracy. The next step is to find out where to send amended tax returns. Up until summer 2020, amended returns could only be physically mailed to the IRS Service Center. You can still opt to send it this way. Alternatively, you can submit your return online. It can take up to three weeks for your amended return to show up in the system, and up to 16 weeks to process it. Theres no need to check up on its progress before this point. However, if youre curious or the 16 weeks has passed, you can use the amended return checker on the IRS website. Youll need to provide:  Social security number  Date of birth  Zip code  Although theres no limit to submitting amended tax returns, if you want your refund you should do it as quickly as possible. There is a three-year statute of limitations on issuing refund checks, which is something to keep in mind if youre claiming additional tax credits. We can help  GoCardless helps you automate payment collection, cutting down on the amount of admin your team needs to deal with when chasing invoices. Find out how GoCardless can help you with ad hoc payments or recurring payments.