The amended return. The Internal Revenue Service requires amended tax returns if one’s filing calculations change due to new information coming to light. Mathematical errors in calculating amounts owed or amounts due do not necessitate filing an amended return. The Internal Revenue Service will scan the return for computational errors. You must amend your return if any one of the following conditions, or combinations thereof, apply to the original return:
Adding to the number of dependents claimed as exemptions
Removing dependents from the number claimed previously
Correcting your filing status (e.g. from single to married, filing jointly etc.)
Reporting additional income (e.g. verified by changed W2 or an additional 1099 etc.)
Modifying the types of deductions taken
Changing tax credits taken or surrendered
Reporting new withholding data
Tax returns are amendable for up to three years. If the original return was filed before April 15th the timeline is three years from April 15th. If you filed under the October 15th extension deadline, then the timeline is three years from October 15th.
Locate your income tax form for the tax year in question. Was it the form 1040? Or did you file with the 1040EZ? Don’t forget, the 1040A form is another possible option you may have used. In any case, be sure that you work the amending process with the actual income tax form you used for filing that year’s return. Be sure to use the information off the tax return that you filed. Recommendation: Rely on your tax records to convey accurate information to the Internal Revenue Service.
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Download the correct form for amending your tax return. Remember that once the form is downloaded onto your computer’s hard drive, you’ll need to print the form in its entirety. Printing official tax forms requires “Adobe Reader.” Recommendation: Use the most current 1040X form.
Record current personal information on Form 1040X. Update your Adobe Reader. Click on blank lines then enter your personal information. If you cannot enter data directly into the Form 1040X on-screen then you will have to print the form and fill it out by hand. The tax year may not be the year in which you are making the amendment to your tax return. Verify the tax year. Recommendation: Double check the Social Security Number that you’ve recorded on the Form 1040X. Recommendation: Avoid common transposition errors and typos of reversing two numbers next to each other- especially the two middle digits and the two ending digits.
Record Changes in the Proper Order on Correct Lines. There are three (3) columns in Section 2 on Form 1040X. Column 1 is for your original information. Column 3 is for you to record the changed value you are submitting as “amended.” Column 2 has the mathematical difference between Columns 1 and 3. Recommendation: Calculate the value to be recorded in Column 2 on a separate sheet of paper before finalizing this information. Avoid computational errors by working out the math before filing. Double check your work.
Recalculate your tax credit and complete the correct form. A common change in status is for taxpayers who buy their first house. If the tax credit applies to you then you will need the proper form (IRS Form 5405). Calculate and recalculate your credit. Your line 6 results on Form 5405 should be recorded on Form 1040X, line 15.
Complete page one Form 1040X computations. While completing page one of Form 1040X, you will have the opportunity to identify any forms necessary for verifying or documenting changes on your amended return.
Complete page two Form 1040X computations. Part 1 of page 2 may be left blank. Complete Part 1 of page 2 ONLY due to changes in the number of your exemptions claimed-
· On the original return.
· As a family displaced by the Louisiana Hurricane.
· As a family displaced by tornados in Mid-American states.
Part 2 is your formal explanation of the amendments made to your return. State your reasons. Use language that is as close to the official IRS guidelines for “why” you should amend a tax return.
Ensure all necessary forms are printed and signed. Be sure all supporting forms and documentations for any credit(s) you are claiming are included in the same envelope to be sent to the proper IRS address. Failure to include the forms and documentation with your Form 1040X will raise doubts of reviewing agents as your claim’s integrity.
Community Tax Relief was created by Attorneys and Bankers with years of experience in both tax resolution and financial services. Our mission is to create a new standard for the industry, in which the customer and their best interest truly come first. We have grown tired of seeing clients getting taken advantage of and paying outrageous fees for which they receive little to no service in return. Too many clients are turned away from our competitors because they couldn’t pay high upfront fees.
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