Amended Federal Returns: You did good and submitted your taxes by April 15th. Butyou think you've overlooked something big, or you did not remember to make use of certain deductions. Don't panic; it isn't too late to remedy your mistakes with amended federal tax returns when you submit your taxes.
Amended Income Tax Return: When You Must File One
Use IRS Form 1040X, Amended U.S. Individual Income Tax Return, to fix any errors on your taxes. When you submit taxes, amended federal returns can help with federal tax return errors. From the Internal Revenue Service, the following are 5 reasons why you will need to submit amended returns. Not all tax return errors will require an amended return:
- If You Failed to Report Your Full Income:
You need to report every cent you earn to the Internal Revenue Service. This includes money made from selling your business, doing work as an independent contractor, or working a side job.
- If You Claimed Credits or Deductions That You Shouldn't Have:
Now is the time to make amends if you've started to worry about your bold tax deductions or credits. Bear in mind that excessive credits and your chance deductions are suspicious and can put you at an increased risk for an audit.
Owners of Small Businesses, Be Careful:
Small businesses and the self-employed are supposedly the leading contributors to the massive tax gap. The IRS aims to close the gap, and they are attacking small business owners with a vengeance. They've promised to bump up the number of audits, so if you have made any Tax Return errors, be certain to make use of Amended Federal Tax Returns to correct them.
- Did You Fail to Take Advantage of Credits or Deductions That You Had Been Eligible for?
There are many new deductions and tax credits to make use of.
Don't hesitate to submit an amended tax return if you failed to claim any of these new opportunities. Just make sure you double check with a tax expert to make sure you are eligible.
- Do You Need to Amend Your Filing Status?
Amending with a more accurate filing status is relatively easy.
Did you file jointly with your spouse, but wish to modify it to Married Filing Separately? If you've already submitted your taxes by the due date, it's too late to do that. As an exception, an executor might have the ability to change this in situations of a spouse who has passed on.
- If You Qualify for the First-Time Home Buyers Credit:
If you bought a home in 2008, 2009, or 2010, you might be eligible for the First-Time Homebuyers Credit.
The IRS Service Center will, under some circumstances, correct tax return errors for you. Do not submit an amended return if you made one of the below mistakes.
- Simple Arithmetic Errors:
The Internal Revenue Service may correct mathematical mistakes made on your income tax return, according to the government website.
- Forms and Schedules Forgotten:
The Internal Revenue Service may take returns with schedules or forms left out. Watch for correspondence from the Internal Revenue Service seeking information rather than filing an Amended Tax Return.
Using IRS Amended Returns to Correct Tax Return Errors
- File an amended return using Form 1040x
- A brief description of your corrections may be asked for
- The instructions for Form 1040x list the addresses for the Service Centers