Tax returns can often be filed with incomplete or incorrect information, leading to more tax trouble than you bargained for. If you filed early in years past, you might’ve overlooked income from a temporary job or a side gig. Or you may eventually realize that you’re entitled to an extra deduction or exemption. Lucky for you, the IRS routinely processes a significant number of amended returns each year.
For errors beyond simple math
If you need to change your filing status, income, allowable deductions or credits, amending your return is essential. An increase in reported income, for example, is likely to result in more tax due, while an additional deduction or allowable tax credit could get you a larger refund. And who wants to miss out on money owed?
An amended return adds the corrections to the original return. Individual income tax returns filed with the IRS can be amended up to three years after the due date of the original return by filing IRS Form 1040X. A separate Form 1040X is necessary for each year being amended and must be mailed in its own envelope to the address provided in the instructions. A copy of the original return itself isn’t required, but any added IRS forms must be included, as well as any other supporting documents that can help substantiate the amendment.
It can take several weeks for the IRS to process an amended return. An amendment to a federal return might also require a change to your state return, especially if an increase in income is reported.
Ensure that a tax expert has your back
If your amended return results in asking for a large sum of money back or owed, it may be in your best interest to consult with a tax expert. At Magone & Company, our NJ CPAs specialize in tax resolution and can help navigate the tax amendment process. Give us a call today at (973) 846-8265 to schedule a no-obligation consultation.