Did you know that once you file a tax return you have more time to claim additional refunds by filing an amended tax return? You may not have received documentation of a deduction by the filing deadline, or maybe you didn’t realize there was a deduction you were entitled to that you didn’t claim. Either way, there is a remedy… and in addition to the correction reimbursement, the IRS will pay you interest on any payment beyond June 1st after that particular tax return was due.

 When Should I File Amended Tax Returns?

This is how “THEY” explain it:

“Generally, for a credit or refund, you must file Form 1040X within 3 years (including extensions) after the date you filed your original return or within 2 years after the date you paid the tax, whichever is later.”

Now, in easy to understand terms, It’s the later of the following 2 scenarios.

  • If you received a refund you have 3 years from the time you filed your return.
  • If you owed tax you have 2 years from the time you filed and paid that tax.

What You Need To File Amended Tax Returns

  • The IRS Form 1040 X – Amended Tax Return with instructions
  • The tax return that you will be making adjustments to, with all the supporting statements and forms.
  • Instructions for the tax return you are amending.
  • Instructions for Form 1040 X.

Where To Find The Amended Tax Return Form

The amended tax return is easily found on the IRS website Form 1040 X. and the  Instructions are found here. 

What Happens If You’ve Underpaid…

You got some type of income statement late… after you filed your tax return. You have one of two options. You can wait until IRS sends you a bill for the unpaid taxes. Their computer system usually takes 2 years to catch it and send you a bill for the balance on your taxes… with interest. Or you can file an amended tax return and pay the balance of the tax now and avoid most of the interest. Either way, if there is a statement issued by some type of institution or a corrected W-2 from an employer, you can be sure IRS will get it and put it into the system, AND bill you for any extra tax.

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Ellen Wanamaker

Ellen Wanamaker is a retired dental hygienist, health and wellness educator, individual and small business tax/financial specialist, and author. If you are seeking to create and maintain a healthy physical and financial lifestyle, Ellen's contact information is available at her website www.ellenwanamaker.com.

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