So Let’s talk Amended Taxes.
A 1040x is an amended tax return form. This form is used when you have completed your tax return for the year and you have incorrect or additional information for a specific tax year. The IRS treats the Original return and the Amended return as two separate transactions. What this means for you is the IRS will process your Original return and send you a bill (if you owe) or a refund (if they owe you).The IRS will then send you another bill (if you owe them) or another refund (if they owe you more) after they process the Amended return. Filing an amendment sound easy but its a very tedious task to an untrained tax professional, I advise clients to get the assistance of a licensed tax professional to ensure that you dont open yourself up to a chain of audits from the IRS. Here are a few tips to help you decide if you need an amendment:
DO NOT Amend if:
- Your e-filed return is rejected.Your preparer will make your changes before resubmitting or mail your return.
- Your e-filed return is still pending. Wait until the return is accepted before amending. If rejected, make your changes before you resubmit or mail your return.
- You received a government notice that doesn’t specifically tell you to amend (e.g. math error corrections, request for additional forms, etc.). Follow the instructions in the notification. (I advise clients to bring all notices to your preparer immediately, trying to fix the error on your own can not always be correct)
- You received Forms 1095-B or 1095-C and the info matches what you reported on your return.
You must amend if:
- You need to report a tax form you forgot about or received post-filing (most commonly a W-2, 1099, or 1095-A).
- You received a corrected tax form after filing (the “corrected” box is checked) and the new info changes your refund or tax due amount.
- You forgot to report income or claim dependents, deductions, or credits.
- You accidentally claimed dependents, deductions, or credits you’re not eligible for.
- You made an error that affects your bottom line, such as reporting income or deductions in 2016 that should’ve been claimed in a prior tax year (in that case, you’ll need to amend all affected tax years).
- You need to change your filing status (e.g., you want to change from Single to Head of Household).
Note: Every situation is different. Please consult with your tax preparer.
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