Making a mistake on an already-filed tax report is not the end of the world. Truthfully, it’s an accident that happens on a fairly regular basis. There are a few helpful pieces of information to keep in mind if this ever happens.
1. Simple Issues Are Corrected by the IRS
Tax agents at the Internal Revenue Service are trained to spot and correct simple mistakes on tax reports. Common errors such as math equations being calculated incorrectly can be rectified by agents on the job. Forgetting to add something, or improperly subtracting a deduction isn’t a big deal. When these mistakes are corrected, the IRS will notify you by mail to inform you of the changes.
2. Amended Returns Can Be Filed and Sent In
Sometimes the mistake is too big for the IRS to correct. Forgetting to add a dependent or improperly writing a social security number are things that must be amended by you. Simply request a copy of Form 1040X. These are designed specifically to make changes to an already-filed return.
3. It’s Necessary to Have a Copy of The Incorrect Return
When form 1040X is filled out you will see three columns. Column A is designated for filling in the information you sent originally. Column B is for the adjustments that are required to make the figures accurate. Column C will be the finished product that was originally intended to send in the first place.
4. Changes Made to One Item May Affect Others
Remember, when you’re filling out tax forms they are essentially one big math equation. As you progress through the forms additions and subtractions are made, leading to finalized figures in the end. Be sure to double-check all the itemized deductions and any credits you may have been eligible for.
5. Explaining
There is a section on form 1040X where you have a chance to explain the mistake. Do not overdo it, but make sure you thoroughly explain the mistake you made and why you’re filing an amendment. Simply write out, “I forgot a deduction”, or any other statement that properly tells the story.
6. Pay Up if the Amendment Calls for It
On many occasions, an amendment may mean that you now owe money that you may not have thought you did previously. Changes to the deduction and income sections could have serious effects on the final product. If you end up noticing that you owe, send the payment in with the amendment. This will look better in the end.
Final Amendment Tips
There are a couple of other things you need to keep in mind whenever an amendment is filed.
- E-filing is not available for form 1040X.
- You CAN track the status of the amendment online.
- If you end up being owed money, usually the IRS will credit the following year’s return.
Remember to take your time and double-check everything. This will avoid unneeded frustration in the future.
With these tips and strategies, you should be well-positioned to make corrections to your tax reports.
