Sometimes taxpayers must make changes to their tax returns after they submitted them. This may be due to various reasons such as a missed deduction or loan, an error in the reporting of income or expenses, or any other changes that affect their tax obligation. In such cases, IRS allows taxpayers to submit the corrected tax return using form 1040X. In this article, we will discuss what form 1040X is, how to fill it, and its features.
Form 1040X
Form 1040X is the form used to amend a previously filed tax return. It is also known as the Amended U.S. Individual Income Tax Return. Taxpayers use this form to correct errors or make changes to their original tax returns. This form cannot be used to file an original tax return or make changes to tax returns for previous years.
Who must submit Form 1040X?
Taxpayers who need to correct or make changes to their previously filed tax return must submit Form 1040X. This includes taxpayers who have made errors in reporting their income, deductions, or credits or those who have received new tax forms or information after they have filed their original tax returns. Additionally, taxpayers who need to claim a refund or pay additional tax must also file Form 1040X.
How to fill in the lines of Form 1040X?
Form 1040X has three columns: Column A, Column B, and Column C. Column A is for the original figures reported on the original tax return, Column B is for the corrected figures, and Column C is the difference between Column A and Column B. Here are the steps to fill in the lines of Form 1040X:
- Provide basic information In the first section of Form 1040X, provide your name, Social Security number, current address, and the tax year you are amending.
- Explain the reason for amending the return In Part I, explain the reason for amending your return by checking the appropriate box. You may also provide a brief explanation of the changes you are making in the space provided.
- Fill in the original figures In Column A, and enter the original figures that you reported on your original tax return. This includes your income, deductions, credits, and tax liability. Be sure to use the same figures that you reported on your original tax return.
- Fill in the corrected figures In Column B, enter the corrected figures for each line item that needs to be changed. This includes any new income, deductions, or credits that were not reported on your original tax return. If you need to correct an error, make sure to enter the correct figure in Column B.
- Calculate the difference In Column C, calculate the difference between Column A and Column B for each line item. If Column B is larger than Column A, the difference will be positive, indicating that you are owed a refund. If Column B is smaller than Column A, the difference will be negative, indicating that you owe additional tax.
- Explain Part II, explain the changes you made in Column B. This will help the IRS understand why you are amending your tax return. You may also attach additional sheets if you need more space.
- Sign and date the form In Part III, sign and date the form. If you are amending a joint tax return, both you and your spouse must sign and date the form.
Features of Form 1040X
Form 1040X has some unique features that taxpayers should be aware of:
Only one tax year perform:
You can only amend one tax year per Form 1040X. If you need to amend multiple tax years, you must file a separate form for each year.
Must be filed by mail:
Unlike the original tax return, Form 1040X cannot be filed electronically. You must mail the completed form to the IRS at the address listed in the instructions.
Deadline to file:
Generally, you have three years from the date you filed your original tax return or two years from the date you paid the tax, whichever is later, to file Form 1040X. If you are filing for a refund, you have two years from the date you paid the tax to file the form.
May trigger an audit:
Filing Form 1040X may trigger an audit if the changes you made are significant or if there are discrepancies between your original tax return and the amended return. Therefore, it is important to make sure your calculations are accurate and to provide a clear explanation for the changes you made.
May delay refund:
If you are filing Form 1040X to claim a refund, it may take the IRS up to 16 weeks to process the form. This is because the IRS must manually review and verify the information you provided.
In conclusion
Form 1040X is an important form for taxpayers who need to correct or make changes to their previously filed tax returns. It is important to carefully review and fill out the form accurately to avoid any issues with the IRS. If you are unsure about how to fill out the form or have any questions, it is recommended that you consult with a tax professional or contact the IRS for assistance.
Additionally, it is important to note that filing Form 1040X does not guarantee that you will receive a refund or avoid additional tax. The IRS may deny your request for various reasons, such as missing documentation, incorrect calculations, or failure to provide a clear explanation for the changes made.
To avoid errors and potential issues, it is recommended that taxpayers keep thorough records of their income, deductions, and credits throughout the year. This includes saving receipts, bank statements, and any other relevant documents that may be needed to support your tax return. By doing so, you can ensure that you are reporting accurate information and minimize the chances of needing to file an amended tax return.
Form 1040X is an important form that allows taxpayers to correct or make changes to their previously filed tax returns. It is important to understand who must submit the form, how to fill in the lines of the form, and the unique features of the form. By following the guidelines and consulting with a tax professional if needed, taxpayers can avoid potential issues with the IRS and ensure that their tax returns are accurate and complete.
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