It’s not uncommon to make a mistake on your federal tax return or leave out important information such as a tax deduction or credit that you’re entitled to. When that happens, the IRS has a process that gives you a second chance.
“An amended tax return is filed when a taxpayer realizes a mistake was made on the initial return and needs to correct it,” says Nell Curtis, an accounting instructor at Milwaukee Area Technical College in Wisconsin.
Here’s what you need to know about filing an amended return and the common mistakes to avoid when filing.
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What Is an Amended Tax Return?
An amended return is an IRS form that can be used to fix information on an annual tax return you’ve already filed. You must submit your amendment either within three years from the date you filed the original return or two years from when you paid taxes owed from the return—whichever is later.
About 3 million amended returns are filed each year, according to IRS data.
You should use an amended tax return only to correct your filing status, income, deductions, credits or tax liability. There’s no need to amend a return for any mathematical or clerical errors.
How To File an Amended Return
Taxpayers should use IRS Form 1040-X, “Amended U.S. Individual Income Tax Return,” to file an amendment. Later, you can check the status of your amended return by going to the tax agency’s Where’s My Amended Return? online tool, or by calling 866-464-2050.
You can track the status of amended returns for the current year and up to three prior years. When you check online or call, you’ll need to prove your identity by entering information, including your taxpayer identification number (this could be your Social Security number) along with your date of birth and ZIP code.
There are three processing stages of your return: received, adjusted and completed.
You can amend your return by going online to generate a Form 1040-X, which can correct forms 1040, 1040-A, 1040-EZ, 1040-NR or 1040-NR EZ. The online form lets you input your data and download it for submission to the IRS.
If you used one of today’s best tax software programs to file your original return, you should be able to use the same product to submit your amendment.
Why Do I Need To File an Amended Tax Return?
You may need to file an amended return to claim a bigger refund—or because you owe the IRS more money than you initially thought.
People often file tax return amendments because they forgot to report some income, or have realized they should or shouldn’t have claimed certain credits or that they incorrectly claimed dependents, says Curtis, the accounting instructor.
Other common reasons for filing an amended tax return include tax forms like W-2s or 1099s arriving late after you have already filed your return. An amended return is necessary to report any income that was left off your first return.
Tax laws often change—tax credits and deductions are often expanded or taken away, notes Daniel Fan, managing director, head of wealth planning at First Foundation Advisors, an Irvine, California-based financial institution.
For example, at the height of the pandemic, in 2021, the child tax credit temporarily increased to $3,600 and included children ages 17 and under.
When Can I Amend My Tax Return?
Another example could be someone taking too much of a deduction for state and local taxes (SALT). The write-off was limited to $10,000 under the tax overhaul signed in December 2017 by President Donald Trump.
Taxpayers also amend their returns if they had a change in filing status, change in the number of claimed dependents, incorrectly claimed tax credits and deductions or incorrectly reported income, says Daniel Gibson, a partner at New York-based tax and accounting firm EisnerAmper.
If you realize you made a mistake or left out some pertinent information, you should amend your tax return as soon as possible. You don’t want to face interest and penalties if an error or oversight led you to underpay your taxes.
If you’re unsure about whether to amend a tax return, you can use the IRS Should I File an Amended Return? interactive tool.
How Long Does an Amended Tax Return Take?
Once you file an amended return, don’t expect a quick turnaround.
“Unfortunately, it can take anywhere from four to six months,” Gibson says.
The IRS has said an amended tax return won’t show up in its system for up to three weeks. Once that happens, it can take between 16 and 20 weeks for the amended return to be fully processed.
Where Is My Amended Tax Return?
To track an amended tax return, you can use the Where’s My Amended Return? tool on the IRS website starting three weeks after you filed your amendment, or you can try calling the agency at 866-464-2050.
When you enter your information into the online tool, it will indicate whether your amended return has been received, adjusted or completed.
The system updates each day, usually at night.
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The Big Mistake Many Taxpayers Make When Amending Returns
The most common fumble many taxpayers make when they file an amended federal tax return is failing to file an amended state income tax return also, Curtis says.
“Many states rely on the federal return, so if the federal return is amended often the state return needs to be amended as well,” she says.
“Additionally, when filing an amended return, the IRS is looking for documentation to support the amendment, so failing to include the appropriate documentation as to why the taxpayer is amending the return is a common mistake as well,” says Curtis.
Frequently Asked Questions (FAQs)
Is there a penalty for filing an amended tax return?
Not necessarily. The IRS can charge penalties due to late payments of tax. If your amended return results in you owing a higher amount of taxes, you must pay the additional tax within 21 calendar days after receiving notification from the IRS. The agency also can penalize you for severely understating your income tax in the first place, and it can charge interest on taxes not paid by the original due date—even if you’d been given an extension.
Should I amend my tax return for a small amount?
No, taxpayers should amend their returns only for changes to their filing status, income, deductions, credits or tax liability. Small numerical typos or math errors will be corrected by the IRS.
How much does it cost to file an amended tax return?
It doesn’t cost anything to submit an amended tax return yourself, with Form 1040-X. If you’re using a tax preparation service or software, it may charge a fee for an amended return.
Do I need to send a Form W-2 with an amended tax return?
Yes, when filing an amended return you’ll need to include W-2 income statements. They’ll serve as a support for the changes made in your amended return, which will become your new tax return for the year.
