How Much Does It Cost To Amend A Tax Return? (Correct answer)

What does Amendment mean on taxes?

  • The 16th amendment clarified Congress’ authority to impose taxes. The Tax Amendment reads as follows: “The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.”. Ratified in 1913,

How much does it cost to do an amended tax return?

There’s no charge to file an amended return (1040X). You’ll have to file it on paper (print, sign, and mail) since IRS won’t accept e-filed amended returns.

Is it worth filing an amended tax return?

You don’t need to file an amended return if you discover a simple math or clerical error on your return. The IRS can correct those types of mistakes on its own. An amended return isn’t necessary if you forgot to attach a certain form or schedule to your return, either.

Does H&R Block charge to amend?

The company guarantees 100 % error-free service. If you discover an H&R Block error on your return that entitles you to a larger refund or a smaller tax liability, it will refund the tax preparation fee for that return and file an amended return at no additional charge.

Does it cost to amend taxes on TurboTax?

There is no additional fee to amend a tax return originally prepared using TurboTax unless the amended return requires an upgrade to the version originally used.

How do I pay an amended tax return?

If you owe money as a result of the correction, you should include a check or money order with your 1040-X submission. You can pay the balance you owe online, using Direct Pay or the Electronic Federal Tax Payment System (EFTPS). If you can’t pay right now, file the amended return and apply for an IRS Installment Plan.

Can I amend my 2019 tax return online?

You can now submit the Form 1040-X, Amended U.S. Individual Income Tax Return electronically using available tax software products. Only tax year 2019 and 2020 Forms 1040 and 1040-SR returns that were originally e-filed can be amended electronically.

Does amending a tax return trigger an audit?

Amending your return will likely not result in an audit unless there is a substantial change in your taxable income without a reasonable cause. Of course, you’re more likely to be audited if you claim the IRS owes you money, rather than the other way around.

Can I amend my 2020 tax return if I already filed?

If you need to make a change or adjustment on a return already filed, you can file an amended return. Use Form 1040-X, Amended U.S. Individual Income Tax Return, and follow the instructions.

How can I amend my 2020 taxes?

You can now file Form 1040-X electronically with tax filing software to amend 2019 or 2020 Forms 1040 and 1040-SR. To do so, you must have e-filed your original 2019 or 2020 return. For more details, see our August 2020 news release on this topic. Paper filing is still an option for Form 1040-X.

Can I Efile my amended 2020 tax return?

Can I file my Amended Return electronically? If you need to amend your 2019, 2020 and 2021 Forms 1040 or 1040-SR you can now file the Form 1040-X, Amended U.S. Individual Income Tax Return electronically using available tax software products.

How do I amend my 2019 tax return?

File Form 1040-X to amend. Taxpayers must file using Form 1040-X, Amended U.S. Individual Income Tax Return, to correct their tax return. If they are filing an amend 1040 or 1040-SR for 2019, they can now file electronically using commercial tax-filing software.

When can I amend my tax return 2021?

You generally must file an amended return within three years of the date you filed the original return or within two years after the date you paid the tax, whichever is later.

What is the fastest way to amend a tax return?

Use Form 1040X to amend a federal income tax return that you filed before. Make sure you check the box at the top of the form that shows which year you are amending. Since you can’t e-file an amended return, you’ll need to file your Form 1040X on paper and mail it to the IRS.

Can I cancel an amended tax return?

If you mean you already sent in an amended return and want to cancel it, you, unfortunately, cannot cancel an amended tax return once it has been mailed to the IRS. However, you can amend an amendment by filling out another Form 1040X once the original amended return has been processed.

10 Tax Tips for Filing an Amended Return

It has been updated for Tax Year 2021 / Monday, January 19, 2022 at 3:42 PM OVERVIEW Consider the following scenario: you successfully submitted your tax return by the end of February and were the envy of all your friends, but you discovered in June that you had forgotten to include money from a freelance work you had last summer. Don’t worry, all you have to do now is file an updated return using Form 1040-X, which is available online.

1. When to use Form 1040-X

It has been updated for Tax Year 2021 / Monday, January 19, 2022 at 3:42 pm OVERVIEW Suppose you successfully submitted your tax return by the end of February, earning you praise from all your friends, but you discovered in June that you had forgotten to include money from a freelance job you had done last summer, making you feel embarrassed. It is not necessary to file an updated return using Form 1040-X; all that is required is that you do so. Updated for Tax Year 2021 / January 19, 2022 at 3:42 p.m.

It is not necessary to file an updated return using Form 1040-X, as this is all that is required.

  • Filing status, exemptions, income, and deductions or credits are all discussed.

2. Not all mistakes require an amended return

In the event that your initial return has arithmetic mistakes or is simply missing forms, such as the aW-2, you do not need to file an amended 1040-X. The IRS will typically fix and alert you if there is a math error, and it will notify you if any paperwork are missing from your file.

3. Amended return timing

If your initial return has math problems or is merely missing forms, such as the aW-2, you do not required to submit a 1040-X. In most cases, the IRS will fix and alert you if there are math issues, and it will notify you if any documents are missing.

4. Preparing an amended return

To complete a Form 1040-X, you’ll need the following items:

  • It is necessary to have a copy of the original tax return that is being updated. W-2s, schedules, worksheets, corrected information and computations, and any other paperwork required to support the corrections

The original return, on the other hand, should not be included with the 1040-X. Note: Starting in 2020, you will be able to electronically submit a 1040-X, but only for tax years 2019 and after. An updated return must be filed on paper for tax years prior to the current year.

5. Stating the reason for the amended return

On the third page of Form 1040-X, Section III, you are asked to explain in your own words why you are updating the return. This explanation should describe the exact corrections you’re making and can be kept to a minimum in length. Among the possible explanations are:

  • You failed to claim the Child Tax Credit
  • You should have done so. You have received another W-2 form, which may be a corrected version. You neglected to deduct your charity contribution

6. But now I owe money

Whether or not you are obligated to pay money as a consequence of the adjustment, you should submit a check or money order with your 1040-X filing. You can make a payment for the sum you owe online using Direct Payor, often known as the Electronic Federal Tax Payment System (EFTPS). If you are unable to make a payment right away, file an updated return and apply for an IRS Installment Payment Plan.

7. Mailing instructions for paper-filed amended returns

You must submit a separate Form 1040-X for each tax return that you are revising, which must be sent in a separate envelope.

Form 1040-Xinstructions state that you must mail the completed form to the appropriate address provided on the form.

8. After you mail the 1040-X

The Internal Revenue Service takes approximately 16 weeks to complete an updated return. After three weeks, you may verify the progress of your application on the IRS website or by contacting the automated toll-free number 866-464-2050.

9. Check the status of your amended return

Make use of the IRS’s new online tool. Check the Where’s My Amended Return page to see where your Form 1040-X is in the process of being processed.

10. Amending your state tax return

After filing Form 1040-X, double-check to see if any changes are required on your state’s tax form as well. If this is the case, you should get the appropriate form from your state’s tax department and utilize the information on the federal 1040-X to assist you in filling out the form. Make sure to include a copy of your 1040-X with your state’s revised tax return as well. Remember, with TurboTax, we’ll ask you a few easy questions about your life and assist you in filling out all of the necessary tax paperwork.

All you need to know is yourself

Provide straightforward answers to a few easy questions about your life, and TurboTax Free Edition will take care of the rest. Simple tax returns are all that are required.

Top 10 Tax Tips about Filing an Amended Tax Return

IRS Summertime Tax Tip 2015-26 was published on August 31, 2015 by the Internal Revenue Service. If you made a mistake on your tax return, don’t be alarmed; it happens to the best of us. If you discover a mistake on your return, you can file an amended return. You can also make changes to your tax return if you realize that you failed to claim a tax credit or deduction. If you need to make changes to your federal tax return, here are some suggestions from the Internal Revenue Service.

  1. When it is appropriate to alter. If you need to make changes to your filing status, the number of dependents you claimed, or your total income, you should modify your tax return as soon as possible. If you haven’t already done so, you should amend your return to claim any tax deductions or tax credits that you did not claim when you first filed your return. More grounds for amending a return are listed in the instructions for Form 1040X, Amended U.S. Individual Income Tax Return, which is available online. Note: If, as permitted by recent legislation, you want to modify your tax year 2014 return in order to claim the Health Coverage Tax Credit in retroactive fashion, please check IRS.gov/hctcfirst for additional information. When it is not necessary to alter. In some instances, you may not be required to make any changes to your tax return. The Internal Revenue Service (IRS) frequently corrects math problems while processing your initial return. If you failed to include a needed form or schedule, the Internal Revenue Service (IRS) will issue you a notice by U.S. mail informing you of the omission
  2. Form 1040X. Form 1040X is used to make changes to a federal income tax return that has already been filed. Make sure you tick the box at the top of the form that indicates which year you are making the changes for in order to avoid errors. Because you will be unable to e-submit an updated return, you will be required to file your Form 1040X on paper and mail it to the Internal Revenue Service. Form 1040X is divided into three columns. The amounts from the original return are shown in Column A. Colum B displays the net gain or reduction in value for the amounts that have been changed. The sums that have been rectified are shown in Column C. On the other side of the form, you should describe what you are modifying and why you are changing it. More than a year has passed. If you need to file an updated return for more than one tax year, you must utilize a different 1040X form for each year. Send them to the Internal Revenue Service in separate envelopes. The address to use for Form 1040X may be found under “Where to File” in the instructions for the form. Other forms or schedules can be found under “What to File.” If your modifications affect any other tax forms or schedules, please sure to include them with your Form 1040X when you submit it. If you do not, this may result in a delay in processing
  3. You will be unable to request a further refund. Don’t file your amended tax return until you have received your refund from your initial tax return if you are waiting for one from your first return. You may cash the refund check that was issued in connection with your original return. Processing time for amended returns might take up to 16 weeks. You will get any further refunds that you are due
  4. You will not be required to pay any additional tax. If you’re filing an updated tax return because you owe more tax than you originally reported, you should file Form 1040X as quickly as possible and pay the additional tax due. Interest and penalty costs will be limited as a result of this. Forms 1095-A have been corrected. It is likely that you or someone on your tax return registered in qualified health care coverage through the Health Insurance Marketplace, and that you got a Form 1095-A, Health Insurance Marketplace Statement, as a result. It’s possible that you also received a corrected Form 1095-A. The IRS does not need you to file an updated tax return if you filed your initial tax return using the original Form 1095-A and the IRS does not require you to file an amended tax return using a revised Form 1095-A. This is true even though you would owe higher taxes as a result of the newly discovered facts. You may, on the other hand, elect to file an updated return. In certain situations, the information contained on the new Form 1095-A may result in a reduction in the amount of taxes you owe or an increase in the amount of your refund. You may also choose to file an updated return if any of the following circumstances apply:
  • Your premium tax credit was wrongly claimed, or you submitted an income tax return but neglected to complete Form 8962, Premium Tax Credit, in order to reconcile your advance payments of the premium tax credit
  1. If you have received a letter addressing your premium tax credit or Form 8962, you should read and follow the directions in the letter before updating your return. When should you file your paperwork? To be eligible for a refund, you must file Form 1040X no more than three years from the date you originally filed your tax return. For those who paid their taxes after the three-year period, you can file it no later than two years after the payment was made
  2. Otherwise, you must file it within three years after the payment was made. Keep track of your return. You may check on the status of your updated tax return three weeks after you file it by using the “Where’s My Amended Return?” feature on the IRS website. This tool is accessible on IRS.gov or by phone at 866-464-2050
  3. It is also available in Spanish.

You can obtain Form 1040X at any time by visiting IRS.gov/forms. When it comes to dealing with the Internal Revenue Service, every taxpayer has a set of fundamental rights that they should be aware of. These are the rights you have as a taxpaying citizen. Visit IRS.gov to learn more about your rights and our responsibilities to safeguard them.

Additional IRS Resources:

  • Tax Topic 308– Amended Returns
  • Amended Tax Returns– Frequently Asked Questions

IRS YouTube Videos:

  • Making Changes to My Tax Return – English | Spanish | American Sign Language (obsolete)

Subscribe to IRS Tax Tips for more information.

What taxpayers should know about amending a tax return

Tax Tip 2018-118 from the Internal Revenue Service was issued on August 1, 2018. Taxpayers who realize they have made a mistake on their tax returns after they have been filed can file an updated tax return to fix the error. This involves things like amending the filing status and making adjustments to income, credits, and deductions, among other things. Here are some suggestions for taxpayers who need to make changes to their tax returns.

  • Fill out and send in the paperwork. Form 1040-X, Amended Individual Income Tax Return (United States). Taxpayers who submitted their initial return on paper must also file an updated return on paper, regardless of whether they filed their original return online. Those who wish to file a Form 1040-X should mail it to the address indicated in the instructionssPDF for the form. In contrast, taxpayers who are responding to an IRS notice should send their Form 1040-X to the address shown on the notice
  • Otherwise, they should file their Form 1040-X online. If taxpayers made adjustments to their Form 1040-X by using additional IRS forms or schedules, they should attach those schedules to their Form 1040-X. In order to correct math errors, taxpayers should refrain from amending their tax returns
  • The Internal Revenue Service (IRS) will correct the math errors for the taxpayers. Taxpayers should also refrain from amending their tax returns in the event that they forgot to include a required form or schedule. The IRS will send you a letter informing you of the missing item. Anyone who has to make changes to their tax returns for more than one year will need to file a separate 1040X for each tax year in question. In addition, taxpayers should wait until they get a refund from their initial tax return before completing an updated tax return for the current tax year using separate envelopes. Taxpayers who file an updated return because they owe extra tax should file Form 1040-X as quickly as feasible and pay the excess tax due. Interest and penalty costs will be minimized as a result of this. Generally, taxpayers must submit a Form 1040-X within three years of the day they timely filed their initial tax return or within two years of the date the person pays their tax – which is normally April 15 – whichever is later. Three weeks after sending an updated return, taxpayers can check the status of their return by visiting “Where’s My Amended Return?” It may take up to 16 weeks to complete the processing.
See also:  How Many Dependents Can I Claim On My Tax Return? (Perfect answer)

More Information:

  • Tax Topic 308 – Amended Returns
  • Amended Tax Returns– Frequently Asked Questions
  • Interactive Tax Assistant – Should I File an Amended Return

IRS YouTube Videos:

  • Making Changes to My Tax Return – English | Spanish | American Sign Language (obsolete)

Page was last reviewed or updated on August 6, 2021.

How to amend a tax return

While discovering a mistake after filing a tax return may seem devastating, the reality is that millions of taxpayers make mistakes every year, as seen by the 3.8 million taxpayers who submitted an amendment to correct an error or make a modification on their 2015 tax return, among other things. The good news is that there is a straightforward solution to the problem: simply file an updated tax return. Individuals who file their tax returns on time normally have three years from the filing deadline to alter their returns and even obtain a refund.

For example, the Internal Revenue Service (IRS) can generally correct basic math mistakes, such as transposing figures on Form W-2 earnings when a tax return is being completed. If the taxpayer accepts the IRS’s adjustment, there is no need for a tax amendment.

How to amend a tax return: step by step

If a taxpayer is required to modify a tax return, the person must file Form 1040X and provide supporting documentation to support the changes made on the amendment. Form 1040X may be found here. Forms, schedules, statements, receipts, and spreadsheets are examples of what you could find. The taxpayer must then send the 1040X to the Internal Revenue Service, together with any needed payments. If the IRS owes the taxpayer a refund, the refund will be issued within 8 to 12 weeks of the IRS receiving the request.

Take a Second Look for costly mistakes

Customers who are unsure if they have made a mistake but do not want to miss the three-year limit to seek a refund in the event that they have, could take advantage of H R Block’s free Second Look service, which is available online. Taxpayers who completed their own returns or had them prepared by others are eligible to receive a free Second Lookreview of their three most recent prior-year returns. Whether there are any problems on their tax return, a H R Block tax specialist will look into it to see if they were qualified for any credits that may have enhanced their refund.

Should an error or overlooked tax advantage be discovered, the H R Block tax professional can draft a tax amendment to correct it (1040X).

Form 1040-X, Amended Tax Return: How, When, Why & How to Track

An updated federal tax return is used to remedy errors on a federal tax return. When filing an amended return, taxpayers should utilize IRS Form 1040-X. And if you’re wondering, “Where has my amended return gone?” there’s good news: you can trace the status of your amended return on the IRS website or by phoning the agency. Here’s how to file an updated tax return with the Internal Revenue Service, as well as when you should alter a tax return and other requirements to be aware of.

How does an amended tax return work?

IRS Form 1040-Xis the form you use to alter or revise a tax return filed with the IRS. On that form, you inform the Internal Revenue Service of the adjustments you have made to your tax return as well as the proper tax amount.

  • If you’re making corrections to more than one year’s worth of tax returns, you’ll need to complete a separate Form 1040-X for each year. You’ll also need to submit any forms or schedules that have been affected by the modifications. You must file Form 1040-X within three years of submitting your initial return or within two years of paying the tax, whichever is later, if you want to be eligible for money back.

In certain cases, you may discover an issue before the IRS does, or you may get updated tax paperwork after you’ve already filed — for example, if your employer sends you a corrected W-2. Do not send a letter to the Internal Revenue Service stating that you “forgot to mention some revenue.” “Here’s ten dollars,” or “You owe me fifty dollars.” Fill out Form 1040-X as completely as possible. Nerdy suggestion: Taxpayers will be able to complete Form 1040-X online starting in 2020, according to the Internal Revenue Service.

For tax years 2019, 2020, and 2021 (and beyond), you will be able to file modified 1040 and 1040-SR forms electronically on the IRS website. You must submit your updated return to the Internal Revenue Service if you need to file an amended return for a previous year’s return (2018 or earlier).

You can file an amended tax return on your own

Individuals with straightforward tax arrangements and just minor modifications may be able to complete an updated tax return on their own without assistance. Many major tax software systems have modules for filing an updated tax return, which may save you time and money. Many tax preparers are also eager to assist you in filing revised returns. Also keep in mind that amending your federal tax return may necessitate the need to change your state tax return as well.

Ask if your preparer charges for an amended tax return

You should not expect that if you engaged a human tax preparer, he or she will modify your tax return free of charge or pay the additional taxes, interest, or penalties that result from a mistake. If you forget to provide the preparer with information or if you provide erroneous information, you will almost certainly be required to pay for the additional labor. If the error is the fault of the preparer, the party responsible for paying for an updated tax return may be determined by the language in your client agreement.

Keep an eye on the calendar

Although there are few notable exceptions, the Internal Revenue Service generally audits only returns from the prior three tax years. As a result, while it may be tempting to wait and see whether the IRS will catch you in a mistake, it may be more cost effective to admit your mistake sooner rather than later. The Internal Revenue Service (IRS) assesses interest and penalties on unpaid tax liabilities that trace back to the initial due date of the payment of the tax. As a result, the longer you wait to correct a mistake, the more costly the mistake might become.

Where’s my amended return?

You may also check on the status of your modified tax return by phoning the Internal Revenue Service.

  • It can take up to 16 weeks for an updated return to be processed by the IRS, and it can take up to three weeks for an amended return to appear in the IRS’s system. In the event that nothing has changed after 16 weeks, contact the IRS once more (here’s a list of IRS phone numbers) or ask someone at a local IRS office to look into your amended return.
  • Federal rates range from $24.95 to $64.95. Simple returns are the only ones that are offered in the free version. State: $29.95 to $44.95
  • All filers receive free live tax help from a tax professional
  • Federal: $29.95 to $44.95
Promotion: NerdWallet users get 25% off federal and state filing costs.
  • $39 to $89. Federal: $39 to $89. Simple returns are the only ones that are offered in the free version. State: $39 per state
  • TurboTax Live packages include an in-person consultation with a tax professional.
  • Federal rates range from $29.99 to $84.99. Simple returns are the only ones that are offered in the free version. Each state costs $36.99 per year. The Online Assist add-on provides you with on-demand tax assistance.

1040 A Fees

HomePagesPricesAmended Return Fees,Why are they so expensive? Why are they so expensive? People frequently inquire as to why amending a tax return costs so much money. I will tell you that costs vary widely based on a variety of things, so let us have a look at some of the causes for this variation in pricing. There are three fundamentals that will determine the pricing. “Who did the return,” “what sort of firm did or was employed,” and “how much work” would it take to repair it are all questions that must be answered before anything else.

  1. The first step in amending or correcting a tax return is to identify the events that must occur.
  2. There are certain programs that are not over rode compatible, and depending on what year it is, the person performing the amending may not necessarily have that year’s tax application on their computer, so you may have to pay an additional fee to have it loaded.
  3. It is common practice to charge you for the return at the current price, which is the amount that the company or individual would charge for the return if they were to perform it.
  4. Expect sticker shock in certain instances, which is a possibility in some scenarios.
  5. Instead of paying it, you went out and purchased a tax application for $30, with which you completed your taxes.
  6. The trouble is that you don’t know how to make an amendment, and the additional paperwork that are required are well out of your league, and you realize that you need expert assistance.
  7. Also, as previously said, expect to be charged an additional fee if they were had to load a software in order to make the correction.

After the return is put into the tax software in the manner in which it was originally done, improperly (for which someone will be held liable), it is then repaired, which normally entails additional forms, and more forms entails more money, and so forth (someone will pay for that).

(There will be a charge for this.) Without a doubt, there is still much to pay for; has anyone forgotten about our own state?

You are only obligated to tell the State that you have revised your federal return but that there has been no change to your state return if there has been no change.

Alternatively, you may send a message to the State saying, “Amend Federal, no modification to the State.” Believe me when I say that the State will figure it out.

Then you have the opportunity to edit it, and guess what?

(There will be a charge for this.) A word of caution, however: Remember to be on the lookout for altered returns.

The first is a little shady, whereas the second is completely authentic.

Here’s an illustration of how they function.

They assure you that they will most likely be able to get you back $850, which seems fantastic, so you agree.

Then they will have the check delivered to them, and you will be able to pay them once they get your money.

You don’t give a damn because you’ve just received $200 in free money.

If they charge a portion of an adjusted income tax return as a fee for amending a tax return, this is not against the law.

It’s possible that, depending on where you go, they will lessen your responsibility and you will repay the IRS $400 instead of $12499.

This may sound horrible, but when you consider that the IRS notice you received stated that you owed $12499, it isn’t that bad after all.

As I indicated before, the ‘person who did the return’is an important consideration since, first, because they already have the return on their computer, they don’t have much or anything to enter, which should save you a buck or two in processing fees.

If I completed the return, you would pay $150 because I completed the return and already have the majority of the information, so I would only be making corrections.

Remember, this is me, and I am the owner of my company, thus I am free to establish my own rates.

This is an area where a significant problem might arise.

What are you going to do, and where are you going?

If you take it back to a respected business and it turns out to be the preparer’s error, they should fix it for free, as I am sure they will.

However, if you were so dissatisfied with the business that you decided to go elsewhere, keep in mind what the others will have to do, which is to reconstruct the income tax return in its entirety and make the necessary modifications, which will not be done for free.

Finally, we state how much work will be necessary to do this task successfully.

Many people will just refuse to do it, no matter how much money they are paid.

This is absolutely correct, and it is far more accurate than the ordinary client is likely to be aware of.

They will not want to be a part of this and will turn their backs on you.

Do not imagine for a second that everyone will submit an updated tax return, since many will not.

Yes, $500 is a great price, but the difficulty I anticipate will make it unprofitable in many cases, perhaps even in the majority of cases.

We are aware that you will be audited, and we do not wish to be a part of that audit.

Speaking of annoyances, many attorneys, CPAs, estate planners, and other professionals will no longer represent anyone before the Internal Revenue Service or the Federal Trade Commission.

I made the decision to cease representing clients and would only represent persons who are brought to me by an attorney or a certified public accountant, and I mean they must be referred.

One, the return must be reconstructed, and someone must bear the financial burden of doing so.

Following that, once the error has been fixed, it must be documented on a particular IRS form, for which a fee will be charged.

Someone has to bear the financial burden of this.

Here’s where the whole thing becomes a joke.

You have paid the price for attempting to save money by either doing it yourself or by hiring someone who was simply not that skilled or who was simply inexpensive to hire.

You now understand what will happen if you choose a low-cost contractor, and you are aware that there is a possibility that you may be audited. So, once again, I question, “Who is going to make amends for you?”

7 times when you might need to file an amended tax return

Why are they so expensive? – Home PagePricesAmended Return Fees – Why are they so expensive? People frequently inquire as to why amending a tax return is so costly. I will tell you that prices vary greatly depending on a variety of factors, so let’s take a look at some of the reasons for this variation in pricing. Price will be determined by three fundamental factors. “Who did the return,” “what type of firm did or was used,” and “how much effort” will it take to correct it are all questions that must be answered before anything else is done.

  • The first step in amending or correcting a tax return is to go through a series of events, which are listed below.
  • There are some programs that are not over ride friendly, and depending on what year it is, the person doing the amending may not necessarily have that year’s tax program on their computer, and you may have to pay an additional fee to have it loaded.
  • Returns are typically billed at current market rates, which is what a firm or individual would charge for the return if they were to perform it themselves.
  • Expect sticker shock in some instances, which is a possibility.
  • In response, you purchased a tax preparation program for $30 and completed your own taxes on your own timeframe.
  • However, you are unable to complete an amendment because you lack knowledge of how to do so, and the other forms required are completely beyond your comprehension.
  • In addition to the cost of the return, the return from yesterday has increased to $550.

This is only the beginning of how pricey things may quickly get.

Third, when everything has been completed and rectified, the information is entered into a 1040X, which is the form that the IRS utilizes to process modified returns.

A change in state income tax or “other tax” liability necessitates the need to modify the state just once.

Even though it appears to be difficult, it is not.

The State will sort it out, I am confident.

And guess what happens next?

In the event that you simply need to alter a State, you will not be required to pay anything because all States are based on the Federal, and thus in order to fix a State, you must also correct the Federal.

An admonition to be aware: Remember to be on the lookout for altered returns.

The first is a little bit shady, but the second is completely honest and trustworthy.

As an illustration of how they function, consider the following: You may obtain a free tax review, as well as a guarantee that you will get your money back: After paying $350 to have your income tax return completed, you decide to go somewhere else and have them look at it for free.

To be sure, you are informed of the necessary actions, but the cost of reconstructing your tax return and amending your return is exorbitantly high.

They will accompany you to the bank when the cheque is received.

This is something to keep in mind: For the purpose of charging a fee for doing your taxes, it is unlawful for an income tax preparer to charge a portion of your refund.

You may have received a notice from the Internal Revenue Service (IRS) claiming that you owe $12499.

It’s possible that, depending on where you go, they will lessen your responsibility and you will only owe the IRS $400 instead of $12499.

This may sound horrible, but when you consider that the IRS notice you received stated that you owed $12499, it isn’t that bad at all.

For starters, because they already have the return on their computer, they don’t have much or anything to type, which should save you money.

I would rarely ask you to pay for additional forms unless they were major forms that would have increasedthe cost of the original return, and even then you would only be charged the difference between the two amounts.

The majority of others are unable to help you.

For example, suppose the individual was simply so awful and inept that you didn’t want them to perform anything for you.

By now, you should have grasped the significance of the question, “Who made the return?” Afterwards, I stated the “Firm,” which has either completed the correction or is still completing it.

Even if it was your error, and you can prove it by blaming the tax preparer (which occurs all ofthe time), the company will almost always fix it for free; sometimes I will, and sometimes I won’t, depending on the circumstances.

If you are reading this, I would hope you are aware of the significance of the business you hire, as well as the person who completed your tax return.

Even if they charge more, many people will just refuse to participate.

This is absolutely correct, and it is far more accurate than the ordinary client is likely to be aware of or understand.

It is likely that they will not want to be a part of this and will distance themselves from you.

Do not imagine for a second that everyone will submit an updated tax return, since many will not.

Yes, $500 is a lovely price, but the difficulty I anticipate will make it unprofitable in many cases, perhaps in too many cases.

Some more information that you might find valuable is provided below.

It just isn’t worth the trouble, time, or energy it would take to accomplish.

Let’s review everything we’ve learned so far: Why is it so costly?

It must then be amended, and further paperwork may be required; someone will bear the cost of these additional documents.

Once this is completed, the error will be closed.

Someone has to bear the financial burden of this situation.

Finally, here’s where the humor is.

You have paid the price for attempting to save money by either doing it yourself or by hiring someone who was simply not that good or who was simply too cheap to employ.

If you employ a low-cost service provider, you now understand what will happen, and you are aware that you may be subjected to an auditor’s scrutiny. “Who is going to make your amends?” I ask once again.

Everyone needs a second chance every now and then — and sometimes you even need another shot at filing your tax return.

Consider the scenario in which you have suddenly recognized that you have made a mistake on your federal income tax return or that you have neglected to claim a significant deduction. It might be unpleasant to realize that you have made a mistake with your taxes. If you make a mistake, it might result in you receiving a smaller refund than you should have – or perhaps incurring interest and penalties if you owe more tax than you originally anticipated. But don’t get too worked up over it. For most states, you have up to three years from the date you filed your initial return, or within two years from the day you paid the tax, whichever is later, to file an amended return and claim a refund.

Do you have a fear of audits?

  • Take for example, the situation in which you have suddenly recognized that you have made a mistake on your federal income tax return or that you have neglected to claim a significant tax break It might be unpleasant to realize that you have made a mistake with your tax return. The consequences of your mistake might include obtaining a smaller refund than you should have received — or perhaps being subjected to interest and penalties if you owe more tax than you originally estimated — or both. Nevertheless, don’t get too worked up over it. You normally have up to three years from the date you filed your initial return, or within two years from the date you paid the tax — whichever is later — to go back and revise it in order to receive a refund. Check out some of the instances where you may be required to file an updated tax return in the next section. Worried about internal or external audits? Obtain a Free Audit Defense Services

What is an amended tax return?

A tax return that has been modified has been changed, and that is precisely what you are doing when you file an updated tax return. You make a revision to your tax return to take into account fresh information. Making an update to your tax return might be complex since you must complete additional documents in addition to the initial 1040 tax return. Any time you need to make a change to your filing status, income, deductions, or credits, you must file an amended tax return (Form 1040X) together with any forms or schedules that need to be updated or replaced.

The original copy of your return, as well as any additional information that has to be included with your updated return, are required in order to file an amended return.

What are some common reasons to file an amended tax return?

No one is flawless, and mistakes are unavoidable in every situation. However, you may correct the errors by submitting an amendment. Here are a few instances of frequent circumstances that may need the filing of an amendment on your behalf:

1. You filed your taxes and then received another W-2 or other income statement

A few weeks after filing your taxes, you received a W-2 for a job that you had only been at for a few weeks. Even if the amount on the form is only a few hundred dollars, it might have a significant impact on your tax liability. Alternatively, you may have received an interest statement on a bank account that you had previously forgotten about. The Internal Revenue Service (IRS) wants you to declare all of your revenue for the year. The best course of action in this case is to file an updated tax return.

If you intend to file early, it is advisable to be certain that you have received all of your income statements before proceeding.

2. You missed claiming a credit or deduction you were eligible to receive

It is possible to reduce your taxes by taking advantage of a variety of credits and above-the-line deductions (deductions for which you do not have to itemize). If you are qualified for one and do not take advantage of it, you may be putting money at risk of being lost. You may be able to claim that money if you file an updated income tax return. Example: If you paid for college tuition during the tax year, you may be eligible for the American Opportunity Tax Credit or the Lifetime Learning Credit, depending on your circumstances.

In order to claim your educational credits after you have filed your 1040, you will need to file an amendment to your tax return.

3. Your parents want to claim you as a dependent on their taxes, but you already claimed a personal exemption

You went ahead and filed your taxes before your parents had a chance to do so since you were claiming a personal exemption. Your parents, on the other hand, wish to list you as a dependant on their tax returns. It is possible that you missed to tick the box on the 1040 that states you might be claimed as a dependant on someone else’s taxes when you filed your taxes. Your parents will no longer be able to list you as a dependant on their taxes. If your parents are able to list you as a dependent on their taxes — and you believe they should be able to — you will need to file an amendment.

4. Your employer made a mistake on your W-2 and had to send you a corrected document

People make errors, and businesses are no exception. If the payroll department makes a mistake on your W-2, the agency will be required to provide you a revised document. When you receive the revised W-2C, it will display the previously reported information next to the accurate information to let you know what information has to be rectified and what information does not. If the numbers have changed and you have already filed your return using the wrong W-2, you will be required to file an amendment to remedy the error.

Get a Free Audit Defense Service

5. You forgot to report income from a side gig

You held a part-time job but were unaware that you were required to record the additional income on your federal income tax return. Despite this, you went ahead and submitted your taxes, but later on you received a CP2000 notice from the Internal Revenue Service informing you that the IRS’s records do not match the information you provided on the tax return. It’s possible that you underpaid your taxes in this situation. The notification details the money from your side employment that you failed to submit to the IRS.

You should only update your return if you have any extra income, credits, or costs to record.

As a result, you’ll need to file an amendment.

In addition, you will want to put “CP2000” on the top of your revised return, attach it to the answer form, and submit it to the Internal Revenue Service.

6. You used the wrong filing status

You were married in November, according to the records. You and your husband anticipated that because you were single for the majority of the year, you would have to file separate returns under the single filing status. However, if you get married before December 31 of the tax year for which you’re filing, the IRS considers you to be married for the whole year. To update your filing status, you will need to submit an amendment with the court. Consider the financial benefits of being married, such as the increased standard deduction, and you may find yourself looking forward to filing that modified tax return after all.

7. Someone else claimed your child on their tax return

When you go to file your taxes, the IRS tells you that your ex-spouse (or someone else) has already claimed your kid as a dependant on his or her tax return. Of However, if you wish to qualify for some tax incentives, such as the child tax credit, you and your ex cannot both name your kid as a dependant on your tax return. Whatever your legal status (divorce, parenting plan, or custody arrangement), the parent who gets to claim the kid as a dependant for income tax purposes is normally the person who has custody of the child more than half of the year and who provides more than half of the child’s support.

If the two of you are unable to reach an agreement, the IRS will use tie-breaker procedures to determine who will be entitled to claim the kid.

FAST FACTS

Children under the age of 17 at the end of the tax year are eligible for the child tax credit, which is a federal income tax benefit offered to taxpayers who have qualifying children under that age. For each qualified child, the credit is worth up to $2,000 in total. If you qualify for a tax credit, the amount of the credit is determined by your modified adjusted gross income. Find out more about the child tax credit, including how to apply for it.

Is there a time limit for amending a return?

When filing Form 1040X to amend a return, the IRS recommends that you must do so within three years of the date you filed your initial tax return or within two years of the date you paid the tax, whichever is later. Make sure to include the year of the return you are updating in the first field of Form 1040X at the top of the page. If you miss the deadline, the Internal Revenue Service (IRS) may not allow you to amend your return, and you may lose out on any deductions, credits, or tax advantages that might otherwise be available to you if you filed an amended return.

How can I file an amended return?

You must file Form 1040X if you want to make changes to your tax return. In summer 2020, the Internal Revenue Service began accepting 1040X forms that were submitted online. Previously, you had to send a paper 1040X to the IRS if you wanted to make a change to your return. Some online tax filing services can assist you in completing a 1040X, which you can then print and send to the Internal Revenue Service. For example, if you used the freeCredit Karma Tax®filing service to file your original return, you may utilize the same service to complete the amended return as well.

You may be familiar with electronic filing of your tax return; nonetheless, here are some recommendations for submitting a paper 1040X:

  • Ensure that the paperwork is signed and dated. Attach to the 1040X any supporting documentation that is necessary to support your change. Check out the 1040X instructions for further information on how to build your return because the forms must be attached in a precise order. On Form 1040X, Part III, be careful to include a detailed explanation of why you are modifying the return. If you prepare your 1040X with software or an online service, you’ll need to print and submit a copy of the completed form. If you want to save a copy for your records, it’s generally a good idea to print another duplicate.

If you discover that you need to modify many years’ worth of returns, you’ll need to file a separate 1040X for each of the years in question. Using the IRSWhere’s My Amended Returntool, you may find out where your amended return is in the process of being processed.

Bottom line

An updated tax return is similar to receiving a second shot at any tax benefits that you may have missed out on the first time you filed your tax return. Of course, it’s possible that you’ll wind up owing more money in taxes. Being aware of the circumstances that may necessitate the filing of an amended return may prevent you from making a mistake that you will have to fix later. Do you have a fear of audits? Get a Free Audit Defense Service Sources that are relevant: Tax Information from the IRS: IRS Provides Tips on How to Amend Your Tax Return|IRS: Amended Returns and Form 1040X|IRS: Amended and Prior Year Returns|IRS Reminds Employers: Forms W-2, W-3, and some Forms 1099-MISC are due by January 31|IRS Form 1040|IRS: Understanding Your CP2000 Notice|IRS Publication 4491, VITA/TCE Training Guide|IRS: Qualifying Child of Janet Murphy, a senior product expert with Credit Karma Tax®, is a certified public accountant with more than a decade of experience in the tax sector.

She has worked as a tax analyst, tax product development manager, and tax accountant, amongst other positions in the tax industry.

You may find her on the social networking site LinkedIn.

An experienced tax expert, she has completed individual and company tax preparation for both state and federal returns. She is fluent in English and Spanish. More information may be found here.

How To File An Amended Tax Return

Note from the editors: We receive a commission from affiliate links on Forbes Advisor. The thoughts and ratings of our editors are not influenced by commissions.

Compare the best tax software of 2022

When filing your federal tax return, it’s not unusual to make a mistake or forget to include key information, such as a tax deduction or credit that you’re entitled to—but the Internal Revenue Service (IRS) has a method that allows you to get a second chance. Nell Curtis, an accounting instructor at Milwaukee Area Technical College in Wisconsin, explains how to file an amended tax return when a taxpayer finds a mistake was made on the first return and has to repair it. Here’s everything you need to know about submitting an amended return, as well as how to avoid making typical filing blunders.

  • Best Tax Software for the Year 2022
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How to File an Amended Return

To submit an amendment, taxpayers can utilize Form 1040-X, Amended U.S. Individual Income Tax Return, which is available online. By using the Where’s My Amended Return? online tool or by phoning 866-464-2050 three weeks after you file your amended return, you may determine the current status of your amended return. Using this feature, you may keep track of the status of modified returns for the current year as well as up to three previous years. In order to check your account online or over the phone, you’ll need to verify your identity by entering information such as your taxpayer identification number (which might be your Social Security number), your date of birth, and your zip code (if applicable).

Some of the most typical reasons to submit a tax return are to modify the number of dependents you claim, to report a different total amount of income than when you first filed, or to claim tax deductions or credits that were previously unavailable.

Individual Income Tax Return (you can alter forms 1040, 1040-A, 1040-EZ, 1040-NR, or 1040-NR EZ) and submitting it electronically.

Why You May Need to File an Amended Return

Form 1040-X, Amended Individual Income Tax Return (United States), should be used to file an amendment by the taxpayer. It is possible to verify the status of your amended return three weeks after it has been submitted by using the Where’s My Amended Return? online service or by calling 866-464-2050. For the current year and up to three past years, you may keep track of the progress of revised returns. As a result, whether you check online or by phone, you’ll be required to verify your identity by entering information such as your taxpayer identification number (which might be the same as your Social Security number), date of birth, and zip code.

Changes in the number of dependents you claim, changes in your total income since you first filed, and the fact that you are now eligible for tax deductions or credits are some of the most typical reasons for filing a new tax return.

Going online and completing Form 1040X, Amended U.S. Individual Income Tax Return, will allow you to update forms 1040, 1040-A, 1040-EZ, 1040-NR, and 1040-NR EZ, among other returns. You may fill out the online form and then download it to send to the Internal Revenue Service.

One Big Mistake Taxpayers Make When Filing an Amended Return

If a taxpayer needs to file an updated return, Curtis says the most common error they do is neglecting to file an amended state income tax return as well, which is the most prevalent mistake. Since many states rely on the federal return, when the federal return is updated, the state return is frequently required to be amended as well, according to her. Moreover, when submitting an updated return, the IRS is searching for paperwork to support the amendment, therefore forgetting to include the required documentation as to why the taxpayer is amending the return is a frequent occurrence.

“The Internal Revenue Service will frequently remedy such sorts of mistakes on its own,” he explains.

11 Tips on How and When to File an Amended Tax Return

Everyone makes errors from time to time. You may not even be aware of your mistakes until long after they have been made in the first place. But what if you discover a mistake on a tax return that you submitted months (or years) ago and haven’t seen it until now? If something new occurs that has an impact on the amount of taxes you should have paid on a prior return, what should you do? What are you going to do now? Whether the error or development is in your favor or in the government’s favor, submitting an updated tax return is frequently the next step in the process.

As well, it is beneficial to be aware with some of the most prevalent circumstances that may necessitate the filing of an amended return (in addition to just a mistake).

For the reason that every taxpayer should have a fundamental grasp of what it takes to edit their tax return after it has been submitted, the following are 11 recommendations on how and when to file an updated tax return.

File a Superseding Return if the Filing Deadline Hasn’t Passed

Photographs courtesy of Getty Images What if you just finished filing your tax return and realized you made a mistake the very following day? The time for submitting your return, including any extensions, has not yet passed, and you do not wish to file an updated return. Instead, you can submit what’s known as a “superseding return,” which replaces the original return. For the most part, if you file a second return before the filing deadline, the second return “supersedes” the first return and is regarded as if it were the first return.

We also propose that you write “Superseding Return” at the top of the form as an additional precaution.

Consider the following scenario: you filed a 2019 tax return in February and, rather of receiving a refund, you opted to use your overpayment against your 2020 tax due instead.

In the event that you file a superseding return by July 15, you will be able to get your refund this year.

Because the IRS is delayed on processing paper returns, it may take some time before your superseding return is processed, but at least you won’t have to wait until next year to benefit from the overpayment you received this year. 2 out of 11

Let the IRS Correct Certain Errors

Photographs courtesy of Getty Images If you uncover a simple math or clerical error on your tax return, you do not have to file an amended return with the IRS. The Internal Revenue Service (IRS) can remedy these sorts of errors on its own. It’s also not essential to file an updated return if you neglected to include a certain form or schedule with your return, either. if the IRS need further information to correct these sorts of problems, they will contact you by letter to let you know. However, you should submit an amended return if there is a problem with your original return that causes your filing status, income, deductions, or credits to change.

Use Form 1040X

Photographs courtesy of Getty Images If you are required to file an updated personal income tax return, you will most likely be required to submit IRSForm 1040X, which is used to complete the following things:

  • The Getty Images collection contains a variety of images that are available for licensing. The IRS Form 1040X, which is used to modify a personal income tax return, will almost certainly be required if you need to file an updated personal income tax return.

In some circumstances, you may be able to substitute Form 1045 for Form 1040X. You could consider using Form 1045 in particular situations such as having to return income that has already been taxed or if you need to carry back certain losses or tax credits. If you’re claiming a refund of penalties and interest, or if you’re requesting an increase to tax that you’ve previously paid, you should also utilize Form 843. Otherwise, Form 1040X should be used as a general rule. Also, make sure to complete a separate Form 1040X for each tax year in which you file.

  • If you’re submitting a separate return, make sure you select the box at the top of the form that corresponds to the tax year for which the return is being modified.
  • Don’t forget to sign the modified return when you’re finished.
  • In most cases, you’ll need to include any schedules or forms that pertain to the modifications you’re making.
  • The form’s instructions will tell you which further attachments are required to complete the submission.

File Your Amended Return Before It’s Too Late

In some circumstances, you may be able to utilize Form 1045 instead of Form 1040X. You could consider using Form 1045 in specific situations such as having to return income that has already been taxed or reclaiming certain losses or tax credits that have been carried back. If you’re claiming a refund of penalties and interest, or if you’re requesting an increase to tax that you’ve already paid, you should utilize Form 843. Other from that, Form 1040X should be used exclusively. It’s also important to remember to file a different Form 1040X for each tax year.

Check the box at the top of the form to indicate the tax year for the return that is being revised if you are submitting a separate tax return.

Do not forget to sign the revised return when you have made the necessary modifications.

A schedule or form pertaining to the modifications you’re making should be attached, in most cases.

In the case of modifying an itemized deduction, you should attach Schedule A. The form’s instructions will tell you which further attachments are required to submit the form successfully. the fourth from the eleventh

Pay Any Tax Owed Right Away

Photographs courtesy of Getty Images It’s great if you can get a refund after making changes to your return, but regrettably, this is not always the case. You should pay any taxes you owe to the IRS as soon as possible after submitting an updated return in order to prevent accruing extra interest and penalties. Because the Internal Revenue Service (IRS) imposes interest on any taxes that are not paid by the due date, you can very well bet on paying some interest. However, settling your tax debt as soon as possible would help you to reduce the amount of interest you’ll be charged.

  1. Additionally, if you do not pay any tax due within 21 calendar days after the date of the IRS’s request for payment (or within 10 business days if the amount of tax owed is $100,000 or more), you will be assessed a penalty.
  2. However, if you have a (very) excellent cause for not paying your taxes on time, the IRS may be willing to waive the penalty against you.
  3. You can make a payment online, via phone, mobile device, cash, cheque, or money order, among other methods (see theinstructionsfor Form 1040X for details).
  4. You’ll still have to pay interest and penalties, as well as a setup charge to get the arrangement up and running.
  5. 6 out of 11

You Can Track the Status of Your Amended Return

Photographs courtesy of Getty Images You may check on the status of your amended return online using the IRS’s “Where’s My Amended Return?” service or by calling 866-464-2050, which is available 24/7. For the current tax year and up to three past tax years, you can obtain information on the status of your revised tax returns. The automatic system will notify you if your return has been received, if it has been amended, and if it has been finished. To gain access to the system, you only need to provide your Social Security number, date of birth, and zip code.

After then, it typically takes eight to twelve weeks for an updated return to be processed, but in exceptional situations it can take as long as 16 weeks or longer—so be prepared to exercise patience.

Claim Missed Deductions or Credits

Photographs courtesy of Getty Images After that, let’s take a look at some of the more typical reasons why you would wish to file a tax return amendment. Many people file one in order to collect a previously unclaimed tax deduction or credit. Because the tax code is densely packed with tax benefits, it’s easy to overlook one that applies to you. Simply file an updated return within the three-year timeframe mentioned above to claim any previously unclaimed deductions or credits. You will get a refund if you qualify for the deduction or credit after you file your original return.

If you’re modifying an earlier return, keep in mind that the recent tax-reform bill modified several tax advantages, which will take effect for the 2018 tax year and subsequent tax years.

Several deductions and credits have been deleted or decreased, while others have been introduced or increased in scope. Consequently, just because you are eligible to a tax break today does not imply that you were also entitled to one on your prior-year tax return. 8 out of 11

Watch for New Laws Applied Retroactively

Photographs courtesy of Getty Images The IRS will review your prior tax returns to see whether you can take advantage of any new or enlarged tax benefits that have been created as a result of the retroactive tax legislation. For example, a “tax extenders” bill was approved in December 2019 that would result in a large number of updated tax returns being filed in 2019. ) (The phrase “tax extenders” refers to a group of tax advantages that keep expiring but are then retrospectively extended by Congress for another year or two.) Tax breaks that had expired at the end of 2017 were temporarily reinstated by the 2019 tax law, including the mortgage insurance premium deduction, the income exclusion for forgiven mortgage debt, the tuition and fees deduction for higher education, and the credit for energy-efficient home improvements (among others).

(For additional information on these tax incentives, read 4 Tax Breaks That Have Come Back From the Dead for Your 2019 Return.) Fill out an updated return to claim any of these tax benefits for 2018.

9 out of 11

You Receive New Information After Filing Your Return

Photographs courtesy of Getty Images If you acquire information after filing your original return that materially alters your taxable income, you’ll need to file an updated return to reflect the changes. Consider the possibility of receiving a revised W-2 form or a 1099 form that shows previously unreported income (enough to make a difference on your return). If the new information has an impact on the deductions or credits that you claimed on your original return—for example, by increasing your income to a point where the tax break is reduced or no longer available to you—you’ll need to file an amended return for that information as well, and you’ll need to file an amended return for the new information.

Changes you make on an updated return that have an impact on your income, deductions, or tax liabilities may also have an impact on the amount of alternative minimum tax you owe or cause you to owe it.

10 out of 11

Disaster Victims Can Amend Return to Deduct Losses

Photographs courtesy of Getty Images It’s possible that you’ll be able to claim a casualty loss deduction for the tax year that before the catastrophe if you’re the victim of a hurricane, wildfire, or other natural disaster. You’ll need to file an updated return to do so. Another option is to file a claim for compensation in the year after the disaster: Decide on the year that is most advantageous to you. A federally proclaimed catastrophe that happened in an area that required public and/or individual help, on the other hand, qualifies as a loss.

If you opt to claim the loss for the year prior to the catastrophe, you must file an updated return no later than six months after the due date for filing your initial return (without extensions) for the year in which the disaster occurred (unless an extension was granted).

Also keep in mind that the amount of a casualty loss deduction is normally limited to $100 per casualty.

However, if you do not itemize, you can claim an extra standard deduction for uninsured casualty losses in excess of $500 that resulted from a federally declared disaster occurring between January 1, 2018, and February 18, 2020 if you do not itemize. 11 out of 11

Take Advantage of State Tax Laws

Photographs courtesy of Getty Images If you prepare your own tax returns, it’s a good idea to complete both your federal and state taxes before filing any of them. However, there are situations when this is simply not feasible. It’s possible that you’re too busy to do them both at the same time, so you send in your federal return (which must be completed first) one day and put off your state return until the next. As a result, when you’re finally getting around to completing your state tax return, you discover that whatever you did on your federal return will actually cost you more in state taxes than it would save you in federal taxes.

Here’s an illustration: To report $150,000 in federal adjusted gross income for the 2019 tax year, Andrew and Becky filed a combined federal return with the Internal Revenue Service.

The total amount of federal taxes they owed was $19,350.

They quickly discovered that (1) their state standard deduction is far smaller than the federal standard deduction, and (2) they are unable to itemize on their state return unless they had already itemized on their federal return, which they did (which is a common restriction).

In the event that Andrew and Becky submit an updated federal return in which they claim their $23,000 in itemized deductions instead of the $24,400 standard deduction, their overall federal tax burden will increase by $310, according to the IRS.

That equates to a total gain of $440!

In other words, if you’ve already submitted your state return, double-check to see if filing an updated federal return would result in you being required to file an amended state return as well.

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