- Personal Finance
Amended Returns Fix Income Tax Return Mistakes when You File Taxes
Amended IRS Returns
You took a step in the right direction by filing your taxes before April 15th. However,you're convinced that you've left out something important, or maybe it slipped your mind to capitalize on certain deductions. Don't worry you can still correct your errors with amended income tax returns. These will assist you with tax return errors.
Top Five Causes You Should Submit an Amended IRS Tax Return
You can remedy your errors with the IRS Form 1040X, Amended U.S. Individual Income Tax Return. When filing taxes, amended IRS returns can assist you with income tax return mistakes. Here are five reasons from the IRS to submit amended returns. Only some tax return mistakes will call for an amended federal return:
1) You Didn't Account for Your Whole Income: The IRS wants to know about every cent you make, even income from selling your business, working a part-time job, or working as a contractor.
2) If You Falsely Claimed Credits or Deductions: If you've started to worry about your bold tax deductions or credits, this is the time to make amends. Remember, large deductions and excessive credits raise a red flag, creating a greater risk for an audit.
3) Small Business Owners, Be Careful: The biggest cause of the current tax gap are considered small business and self-employed individuals. The Internal Revenue Service is coming down hard on small business owners, as they work to bridge the gap. They've taken a vow to bump up the number of audits, so if you are guilty of any Tax Return mistakes, make sure you use Amended Returns.
4) Did You Forget about Deductions or Credits That You Could Have Claimed? There are plenty of new deductions and tax credits to claim. Don't hesitate to file an amended tax return if you missed out on any of these new opportunities. Work with a tax expert to confirm that you qualify.
5) If You Need to File with a Different Filing Status: Filing with a different filing status is pretty simple, like if you submitted your taxes as Head of Household, but after submitting your return, you realized that you don't actually qualify for this status.
Did you file Married Filing Jointly, but wish to switch it to Married Filing Separately? If you already submitted your taxes by the due date, it's too late to fix that. As an exception, an executor could make this change under the circumstances of a spouse who has passed on.
You Are Able to Make Use of the First Time Home-buyers Credit:
If you bought a house in 2008, 2009, or 2010, you may qualify for the First Time Home-buyers Credit.The IRS Service Center will, in a few instances, fix tax return mistakes for you. If you made one of the following mistakes, don't file an amended return, as it may create some confusion.
Basic Math Mistakes: The IRS may amend calculation mistakes made on your return, per their website.
Omitted Forms or Schedules: The IRS can take income tax returns that lack the appropriate schedules or forms. Watch for communication from the Internal Revenue Service asking for details before submitting an Amended Tax Return.Steps for Correcting IRS Tax Return Errors Using an Amended Return
You'll need Form 1040x to submit an amended return
Expect to offer a simple justification of the alterations
The instructions for Form 1040X list the Service Center addresses