• Recalculating Tax Credits
• Claiming Tax Credits Previously Not Taken

You Should NOT file an amended tax return simply to correct math errors.  The IRS has computer programs which will make the corrections for you.

The following are a few tips to help with filing an amended federal tax return:

• The for to file an Amended U.S. Individual Income Tax Return is Form 1040X.  This form is also used to amend 1040, 1040A and 1040EZ returns, and for returns that were filed electronically (e-filed).
• You should file an amended return to change any of the following: filing status, dependents, total income, deductions and/or credits.
• Enter the year of the tax return being amended at the top of Form 1040X.  You must file Form 1040X within three (3) years of the date you filed the original tax return or within two (2) years of the date the tax was paid, whichever is later.
• When amending more than one (1) year fill out a 1040X for each year being amended and mail them to the IRS in separate envelopes.
• Attach all schedules and forms that were filed with the tax return in the year being amended.
• If you are filing to claim an additional refund, wait until you have received your original refund before filing Form 1040X. You may cash that check while waiting for any additional refund.
• If you are filing the 1040X because you owe additional tax money to the IRS be sure to include the tax payment with the 1040X or send in the payment as soon as possible to limit interest and penalty charges. Interest is charged on any tax not paid by the due date of the original return, even if you file an extension.

About Form 1040X to Amend a Tax Return

IRS form 1040X is a process, as most things are when dealing with the federal government.  Remember that the IRS uses a fine tooth comb on each amended return, especially if you are applying for a tax refund.  Be sure to complete each step and line carefully and make sure all math is correct.  If you have had any past problems with the IRS or any pending issues I do not recommend filing a 1040X unless absolutely necessary.

As mentioned above, use IRS form 1040X to file an amended return if you used returns 1040, 1040A, 1040EZ, or e-filed.  Be sure you are within the correct time limit for filing (three (3) years of the date you filed the original tax return or within two (2) years of the date the tax was paid, whichever is later) and that all schedules and forms that were filed with the tax return in the year being amended are attached.

If payment is owed include this with the 1040X, if possible, to avoid additional penalties and interest assessments.

How to Prepare Form 1040X to Amend a Tax Return

First gather the original tax documents for the tax year which you are amending.  Familiarize yourself with the Form 1040X before filing out any of the information.

Before completing the document make sure you understand the form and that you have all information needed to complete it.  You may need to read over it twice.  If you filed your tax return using an internet-based program such as Turbo Tax then you should be able to use their service to file form 1040X at no additional cost.

Layout of IRS form 1040X:

Column A – Reports various items from your original tax return.

Column B – Reports the difference between the old (column A) and the new (column B).

Column C – Reports the same items from your revised 1040.

Should you be reporting an increase in earnings, the figure in Column B will be a positive number.  If you are reporting a decrease in earnings, the figure in Column B will be negative.  Please be sure to have documentation to back up any claims in a decrease in salary, and be sure to check and double check all math before sending.

Form 1040X is Part II –

This is the portion of the form where the changes made to the 1040 are reported, along with the reasons for the changes.  It is important to be clear and concise (short and to the point) in the explanation.

Links provided by the IRS for form 1040X:

• Form 1040X, Amended U.S. Individual Income Tax Return (PDF 110K)
• Form 1040X Instructions (PDF 45K)
• Tax Topic 308 — Amended Returns

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