Amended Return Definition
An Amended Return is the process of making alterations and corrections to a previous tax return. It’s usually used to correct errors, change the filing status, or adjust the income, deductions or credits on a tax return that has already been filed.
Amended Return Key Points
- An Amended Return is a tax return form availed to correct errors from a previously submitted tax return.
- Not all errors require an Amended Return as the IRS may automatically correct some of these.
- Specific circumstances that would necessitate an Amended Return include, but are not limited to, a significant change in income, filing status, and deductions or credits.
What is an Amended Return?
An Amended Return is essentially a mending process of a tax filing. If you realize you’ve made a mistake on your income tax return, regardless of whether it’s related to your filing status, income, deductions, or credits, you would need to file an Amended Return. Keep in mind, however, that not all errors mandate an amended return – the IRS might automatically correct simple mistakes like mathematical errors.
Why should one file an Amended Return?
The need for an Amended Return could arise due to various reasons. One can discover unreported income, realize that one qualifies for additional deductions or credits that weren’t previously claimed, or there could be a change in status – for example, a change from a single status to a married one.
When to file an Amended Return?
The IRS recommends you to wait until the original return has been processed before you file an amended return. Also, keep in mind that amended returns have a time limit – generally, to claim a refund, you must file Form 1040X within 3 years after the date you filed your original return or within 2 years after the date you paid the tax.
Where to file an Amended Return?
An Amended Return is filed with the tax jurisdiction that initially received the return. This is typically the IRS in the United States, but could also be a state or local tax agency.
How to file an Amended Return?
In the United States, to correct your filed tax return, you need to complete a Form 1040X, which is available on the IRS website. The instructions on the Form provide a step by step process for completing the amendment. However, as of March 2021, the IRS announced that Form 1040X can now be submitted electronically.
