How to Prepare Amended Tax Return

Need to Fix a Mistake on Your Tax Return? Here’s What You Need to Know

Amending your tax return is simple – all you need to do is e-file an amended tax return with Prior Tax. It requires just a few steps, but it can make all the difference in getting the credits and deductions you deserve.

Correcting errors and amending your tax return can be done using Form 1040-X. This form can help you report changes such as correcting your filing status, including or removing a dependent, claiming deductions or credits that were missed or even adding income that was forgotten. However, it is important to note this form should not be used for any clerical errors; these will automatically be corrected by the IRS.

Normally, it’s necessary to submit an amended return no later than three years after the original submission deadline. However, this could be extended to two years from the payment of taxes for that particular year, should that fall at a more recent date.

Did you know that it’s possible to make corrections on prior tax return? 

The IRS allows taxpayers to amend their returns when mistakes or oversights have been made. Read on for more information about what’s involved in filing an amended tax return.

Knowing the proper time to file an amended tax return is key. In certain circumstances, this must be done, while in others, it’s unnecessary. Here are some scenarios that necessitate an amendment:

It suddenly dawns on your that a tax deduction or credit was not claimed, and the wrong filing status was declared.

It turns out there’s a missing dependency to be included in the return and an income source not previously accounted for.

Uncovering that an expense, deduction, or credit already claimed is no longer applicable is another issue to solve.

It’s important to ensure the IRS has finished with your tax return prior to submitting an amended one – that way, there will be clarity regarding which is the original and which is revised. A good indicator of this is a received tax refund; once you’ve gotten your rebate, you can be confident that the agency has dealt with your filing.

Do you ever need to submit an amended tax return?

Generally, it’s unnecessary to resubmit a tax form you have already filed with the IRS or amend your tax returns just because of some minor math or clerical errors. The Internal Revenue Service typically takes care of corrections for such mistakes on its end. It will send an additional bill for taxes or offer a refund in cases where the error was advantageous to the taxpayer.

Have you made any mistakes on your past tax returns? Filing an amended tax return may be the solution. The Internal Revenue Service (IRS) could audit previous years’ taxes, which might result in extra taxation. According to regulations, the IRS usually scrutinizes files filed within the last three years; however, addressing any potential issues before prior tax return(s) becomes a problem is preferable. Amending a filing can easily remedy errors that were previously made.

Submitting your amended tax return as soon as possible is highly recommended. Doing so can help reduce the possibility of owing taxes and any applicable penalties. Additionally, it will ensure that you are prepared for any issues that may arise with the IRS.

Are you aware of the time frame to file an amended tax return?

The Internal Revenue Service (IRS) dictates that an individual can only file an amended return to claim a refund within the following:

A period of 3 years from the deadline for primary tax filing, or within 2 years of paying the tax owed for that tax year – whichever date is latter. Unfortunately, requesting reimbursement after these specified timescales have passed is impossible.

Have you ever needed to make a correction to your tax return? 

Submitting an amended return is relatively simple, and this guide will provide all the steps necessary. Here’s what to do:

First off, it’s essential to gather the proper paperwork for preparing an amended return. You’ll need your original tax return and any necessary updated documents.

You may require new or amended documents, such as a W-2 or 1099 form to revise the income reported on your return. Additionally, should any overlooked tax deductions or credits come to mind, supporting documentation would be needed to apply them; this could take the form of receipts for charitable donations, amended Form 1098 Mortgage Interest Statement forms, and even Form 1098-T for education credits.

Obtaining a transcript from the Internal Revenue Service is an option for those who did not file a tax return using Prior Tax and don’t have a copy of it. The Get Transcript tool available on IRS.gov can be used for this purpose, which provides most of the necessary details from the return like income, deductions, credits, and so forth.

The next move is to obtain the pertinent paperwork.

For example, to amend a tax return, you must file IRS Form 1040-X. Additionally, any forms affected by your modification should also be kept on hand. For example, to alter itemized deductions, it’s vital to possess a copy of Schedule A for that particular tax year.

Amending your tax filing may require additional forms based on the type of income added. For instance, Schedule B is likely necessary when adding more interest or dividend income. When it comes time to change revenues or expenses from a trade or business, you’ll need Schedule C and Schedule SE. Meanwhile, Tax Form 8949 and Schedule D would be used for updating capital gains/losses. And so forth.

In order to file an amended tax return via Prior Tax, it is necessary to use the appropriate version of the program. So, for instance, when altering your 2020 tax return, one should employ the 2020 edition of PriorTax.

Even though you did not use Prior Tax to file your initial tax return, it is still possible to use it in order to complete an amendment. You will need to start by entering the same information into Prior Tax that was filed initially and then move forward with the amendment process.

After you have gathered the necessary receipts and documents, the next crucial task is to complete Form 1040-X. This particular form consists of three columns that must be filled out accurately.

Column A is where you enter all your figures and information as reported on your tax return.

The information in the third line of the return should be filled out accordingly. This is where you will enter the changes from your original return. Take, for instance, an amendment on your gross income to include $100 of interest income that had been left out initially – in this case, $100 should be written in Line 1, Section B. The total amount should then be placed in Section C; by summing up what was entered into A and B.

When filing Form 1040-X, Section III requires a thorough explanation of why an amendment to the original return is being made. Therefore, it’s important to provide detailed insight into the purpose of your revised tax filing.

Filing an amended return doesn’t have to be a difficult process. 

With Prior Tax, you can get help from free dedicated tax professionals without needing to memorize all the details. All you have to do is let our dedicated tax professionals know that you require a Form 1040-X, and they’ll make sure any adjustments to your income and deductions are accurately filled out on the right paperwork.

Lastly, send in your amended tax return. Once you have finished completing the necessary forms, it’s time to submit them. As of 2019, taxpayers are able to e-file their amended tax returns so long as the original return was filed electronically and your tax software partner supports sending amended documents in this manner.

Certain supporting documents are necessary to validate the changes for those filing an amended return. This could include W-2 or 1099 forms to report extra income, a Tax Form 1098 Mortgage Interest Statement that has been updated, or even a 1098-T for the purpose of claiming education credits.

This entry was posted on Thursday, May 11th, 2023 at 8:00 am and is filed under Tax for Business, Tax Tips and Tricks, Taxes for Prior Years. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.