Do I Need Tax Return Amendment?

You’ve noticed errors or exclusions made on the tax return? It’s possible to do tax return amendment after submitting your original tax filing. Normally, the IRS would catch any mistakes during processing, but in certain scenarios, you may need to file a tax amended return in order to make corrections or make other modifications to the tax return itself.

This year, some of the changes to tax laws set by Congress apply to previous years’ taxes. This raises the question of whether you should go ahead and file an amended tax return or not. Understanding how to redo your taxes is key in determining which option is best for you.

Do You Need to Revise Your Taxes This Year?

Have you ever submitted your tax return and discovered you’d made a mistake or learned new information that would alter the outcome? You may have asked yourself, is it possible to redo my taxes?

With the enactment of numerous new tax rules for 2018, it is important to consider whether it could be beneficial for you to submit an Tax Return Amendment. Many of us have confronted this issue before. To clarify matters, here’s a guide on filing an amended tax return and the benefits it could bring.

It is important to file an amended return in certain scenarios. This includes when corrections or omissions are needed to your income, a change of filing status, modifications to deductions, and the desire to apply for or adjust a tax credit.

Taking the time to submit an amended return can be a worthwhile effort. It ensures your tax return is up-to-date, enabling you to get the most out of any potential refund or lower what you owe. Moreover, it will reduce the chances of drawing attention from the IRS in the form of audit notices.

A Few Tax Return Amendment Scenarios

Scenario 1. You filed your taxes and then received another W-2 or other income statement.

In some cases, after you have already submitted your tax return, a new income statement could appear. This could include a W-2 from a job held only for a short period of time or even an interest statement from an account you had completely forgotten about. Even though the amount on the form may be small, it can still influence how much you owe in taxes.

Before filing your taxes, you must report all of your income for that year in accordance with IRS regulations. One way to do this is to amend your tax return, and it’s important to ensure you have received all necessary documents first. To comply with legal requirements, employers and businesses must send out all income statements such as W-2s or 1099-MISC by January 31st of each year.

Scenario 2. You missed claiming a credit or deduction you were eligible to receive

Forgetting to claim a credit or deduction can be costly when it comes to taxes. Even though you have the ability to take advantage of various credits and deductions that could lower your bill, not claiming them might mean losing out on money. It’s possible to file an amended return in order to get those dollars back.

When you have paid college tuition during the tax year, there are two credits that could potentially be claimed: the American opportunity tax credit and the lifetime learning credit. Filing your 1040 is not enough, though – an amendment needs to be filed in order to claim educational credits.

Major Tax Breaks from Tax Reform

Tax Reform Aids Taxpayers with Tax Breaks

Taxes on any income and gains must be paid as part of the taxation system. Consequently, in order to incentivize certain activities that are beneficial for society, Congress has implemented tax breaks which can lessen the overall duty a taxpayer is obliged to pay. Therefore, it is highly recommendable to get an up-to-date understanding of all changes, credits, and extensions prior to submitting an Amended Tax Return form.

How To File a Tax Return Amendment

Need to make some adjustments? Filing an amended return is the way to go. To get started, you’ll fill out Form 1040-X, Tax Return Amendment, and attach any corrections or additional documents that weren’t included with your original return. Doing so will bring your filing up-to-date with accurate tax information. Changes to federal returns filed in 2019 and later can be done electronically.

As laid out by IRS regulations, you have up to three years from when your original tax return was submitted to submit an amended return with a claim for tax refund. Additionally, two years is also allowed for filing after outstanding tax has been paid. It should be noted that any returns sent prior to its due date (with or without extensions) are considered as having been filed on that day. Furthermore, withholding taxes from sources such as a W-2 is counted as payment towards taxes on their due date.

Since the implementation of tax reform, it is crucial to address any issues that have arisen as a result. Filing an amended return is the best way to rectify mistakes and fix oversights. Therefore, it is essential to act promptly in order to set yourself up for success in the future.

Summary

In order for adjustments or corrections of a previously filed tax return, the appropriate form is Form 1040-X: Amended Tax Return. This must be accompanied by any documents that were not included in the original submission. Since 2019, amended federal tax returns can also be lodged electronically.

In the event of an oversight or mistake on your original submission, filing an amended tax return can be a wise move. This will allow for revision in terms of income declared, filing status, deductions taken, and claiming/correcting any tax credits owed. According to the IRS rules, however, anyone wishing to claim a refund must submit their amended return within three years from when they originally filed the return – OR – two years from when they settled their outstanding taxes (whichever is later).

Get your taxes done efficiently and accurately with a free PriorTax Dedicated Tax Professional. Whether you prefer having an expert guide you through the process from start to finish or taking advantage of the easy-to-use tool for self-filers, you can trust that PriorTax will guarantee your maximum refund. With our help, filing your taxes can be a breeze – answer straightforward questions, and we’ll ensure everything is taken care of so that you can rest assured knowing it’s been done right.

This entry was posted on Thursday, July 27th, 2023 at 8:00 am and is filed under Tax Deductions and Credits, 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.