Amending Your Tax Return

The season’s done for Tax Year 2007.  Thank heavens!  You’re now filing all of your receipts and other tax information associated with your return.  But wait!  What’s this?  Oh no, you found a document that could give you more money back from the IRS (or lower the amount you owe them!).  What should you do? 

All is not lost!  If it’s a math error, the IRS will usually correct the return and send you the appropriate refund (or contact you to let you know that you owe them less than you originally thought).  If it’s a missing W2 or 1099, the IRS will typically catch that too, make adjustments to your return and request a copy of the document. 

But if it’s a receipt for your business, unreimbursed employee mileage expenses, or other items that the IRS wouldn’t know about: you should file an amended return. 

According to the IRS, you should file an amended return if any of the following were reported incorrectly: 

• Your filing status (Example: you filed single, but should have filed Qualifying Widow(er)).  The only time you CAN’T change your filing status when amending a return is from Married Filing a Joint return to Married Filing Separately.  If you were married when you originally filed, you’re married when you amend – whether you like it or not!
• Your dependents (Just because your child no longer qualifies you for the Child Tax Credit doesn’t mean you should claim him/her for a dependency exemption)
• Your total income
• Your deductions or credits 

You’ll need to use Form 1040X to file your amendment, being certain to enter the tax year of the return you’re amending.  If you’re amending multiple years, you’ll need a 1040X for each year you amend.  And don’t forget to file an amended return for all state returns that you filed! 

This form has three columns.  Column A shows data from the ORIGINAL return.  Column C is used to show the correct information.  The difference between the figures is shown in Column B.  You’ll also need to give a written explanation (space is provided on the form) for the specific changes you are making and the reason for each change.  Attach any changed schedules or forms that impact the 1040X. 

So, what is your timeline?  First, do not file an amended return until you have received your refund.  You can still cash that refund check while waiting for any additional refund.  Second, you must file within three years from the date you filed your original return, or two years from the date you paid the tax, whichever is later, to claim a refund. 

For more information, you can click here, or come to your local PRO-TAX office.

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