How to File an Amended Tax Return with IRS using TurboTax

Did you find an error on your tax return or that you were missing out on a remarkable tax credit or deduction? To fix the error, you can submit an […]

Did you find an error on your tax return or that you were missing out on a remarkable tax credit or deduction? To fix the error, you can submit an amended tax return. The process of filing an updated tax return with the IRS is simple. You may find detailed instructions in this article on when and how to modify your tax return using Form 1040-X.

Key Takeaways

1. You can amend your tax return using Form 1040-X if you submitted one with inaccurate or missing information.
2. The IRS will fix any clerical errors you submit on Form 1040-X. Use it to report important changes like changing your filing status, adding or removing a dependent, claiming missing tax deductions or credits, or adding unreported taxable income.
3. You have three years from the original filing deadline to file an updated return, or, if later, two years from the date you paid the tax owed for that year.

Is it possible to make corrections to your tax return?

Errors do occur, even while filing tax forms. Because of this, if a taxpayer finds a mistake on a return that has already been submitted, the IRS permits them to amend their tax returns. What you need to know about submitting an amended tax return is provided here.

Reasons to file a tax amendment

You can only file an updated return with the IRS if:

  • correct your filing status
  • Increase or decrease the amount of income you originally reported
  • fix any errors you made when claiming dependents
  • add or remove any deductions or credits

You must provide the IRS enough time from the original filing date to correct any mathematical errors in the original return that have an impact on your tax liability. In most cases, the IRS can find and fix math errors on tax returns in a timely manner.

If the IRS makes any changes to your tax return, it will let you know. After getting notice, only then should you update the tax return if more modifications are still required.

The right time to file an amended tax return

There are times in which you ought to alter your return and times in which you ought not. Here are some common situations that necessitate an amendment:

  • You became aware that you failed to claim a tax credit or deduction.
  • You unintentionally used the incorrect tax filing status.
  • A dependency must be added or removed.
  • Your tax return lacks a claim for taxable income.
  • You become aware that you improperly claimed an expense, a deduction, or a credit.

Make sure the IRS has previously processed the tax return you need to update before submitting an amended tax return. It will be less probable for the IRS to mix up your initial return with your amended return if you do this. If you have already received your tax refund, the IRS has processed your return, as you are aware.

When not to file an amended tax return

If you find math or clerical errors on a recently filed tax return, you typically don’t need to file an amended tax return. These kinds of errors are frequently fixed by the IRS on their own, and if required, it will send you a bill for the additional tax owed or a refund if the error was in your favor.

Is it mandated by the IRS to file an amended tax return?

Your previous tax returns could be audited by the IRS, which could result in a higher tax liability. Despite the fact that the IRS normally audited returns from the previous three years, it is always preferable to expect any potential issues. Errors do occur, but they are readily corrected by revising your return.

It is strongly advised that you file an amended tax return as soon as you can. By doing this, you can avoid penalties and get a good start on any prospective tax responsibilities you might incur.

How much time is there to file an amended tax return?

The IRS imposes the following deadlines for filing an updated return to request a refund:

  • Three years after the first filing deadline, or
  • If later, within two years after the date on which the tax is paid for that year.

You normally cannot change your return to receive a refund if you are outside of that window.

How to amend a tax return on TurboTax

An updated return can be filed in a pretty simple manner. Here is a detailed how-to.

Step 1: Collect your documents

In order to prepare your updated return, gather your previous tax return and any new documentation.

You might have a new or revised W-2 or 1099 form if you need to make changes to the income you reported on your tax return. You will need proof to support the new deduction you are claiming if you failed to claim a tax break or credit, such as a receipt for a charitable contribution, an updated or new IRS Form 1098 Mortgage Interest Statement, or Form 1098-T to claim an education credit.

If you originally filed your tax return using TurboTax, you may access it online, print a copy of it, or print a PDF of it by signing into your account on the TurboTax website. You can also print a PDF of your return from the copy you saved on your computer.

If you didn’t use TurboTax and can’t find a copy of your return, you can use the website’s Get Transcript function to acquire a copy of your tax transcript. The majority of the lines from your tax return, including your income, deductions, credits, and tax payments, are displayed in your transcript.

Step 2: Get the right forms

The IRS’s Form 1040-X is used to amend returns. You will also need any forms that your update may affect. For example, you will also need a copy of Schedule A for that tax year if you are adjusting your itemized deductions. You will probably require a copy of Schedule B in order to amend your tax return in order to include additional interest or dividend income. Schedule C and Schedule SE are often needed for adjustments to trade or commercial revenues or expenses. Form 8949, Schedule D, and other documents can be needed to update your capital gains and losses.

Also, TurboTax allows you to prepare your revised return. Use the version of TurboTax that is appropriate for the tax year that has to be amended to accomplish this. For example, you must use the 2022 version of TurboTax if you need to make changes to your 2022 tax return.

If you used TurboTax to prepare your initial tax return, sign into your account, access the previously filed tax form, and click the link to update it. The software will then guide you through the amendment filing process.

You can use TurboTax to create the amendment even if you didn’t use it to file your tax return. To begin the process of updating your return, you must first match the information in TurboTax with the original return that you filed.

Step 3: Fill out Form 1040-X

There are three columns on the Form 1040-X:

  • A Column: The data that was previously reported on your tax return is displayed in this column. Fill out this column using the copy of your tax return that you gathered in Step 1.
  • B Column: The amounts from your initial return that need to grow or decrease are indicated in this column. You would write $50 on line 1, column B, if you were updating your gross income to include $50 in interest income that was left out of your previously filed tax return.
  • C Column: The right quantity is displayed in this column. Simply sum the amounts from columns A and B, then type the total in this field.

You will need to give a detailed explanation for filing an amended tax return in Part III of Form 1040-X.

You don’t need to be an expert while using TurboTax to prepare your amended return. The program will help you in completing Form 1040-X and any accompanying papers as you make adjustments to your income and deductions once you have indicated that you are filing an amended tax return.

Step 4: Submit your amended forms

If you filed your original return online and your tax software provider enables filing amended returns electronically, you can e-file your tax returns with the IRS starting with the 2019 tax year. You will need to print the completed Form 1040-X and any other forms you are updating in order to change a return for 2018 or earlier. Include any required supporting documents, such as:

  • Any updated or new W-2s and 1099 forms
  • Schedule A, for example, if you changed your itemized deductions, is another form or schedule that changed.
  • Any letters you got from the IRS about your amended return

Send all the forms and documents to the address listed in the instructions, or if you can, file the return electronically.

How to amend my state tax return?

Your state tax return can be amended in two easy steps:

  • First, you have to fill out Form 1040-X, the updated federal income tax return.
  • Second, get the appropriate form from your state and complete it using the data from Form 1040-X.

States often employ a unique form for an amended tax return, just like the IRS. The X suffix is also used by many states to form numbers. While some states allow e-filing of revised forms, others demand that you complete a paper return.

California, for example, employs Schedule X, but other states do not. Schedule AMD, for example, is the Hawaii form.

What happens if an amended tax return increases the refund?

The IRS will give you an additional refund if changing your tax return results in a larger refund than you should have received. The difference between the original amount and the adjusted, larger return will be the amount being refunded.

You will receive an additional $1,000 if, for example, your initial tax refund was $2,500 and your new total refund is $3,500 as a result of the changes made based on your revised tax return.

The IRS now has more options for how to process your refund. Electronic filers can now ask for their refunds to be transferred straight into a bank or savings account starting with the tax year 2021. Even better, you can split the direct transfer among many accounts.

Interest and penalties on tax amendments

Although the IRS encourages individuals to modify a tax return when the original fails to appropriately record the correct tax, if the modified return requires the payment of more tax, you will still be liable for interest and penalties.

  • The tax that you failed to report between the time of the original filing and the time you file the amendment will additionally accumulate monthly interest.
  • The IRS may also levy a late payment penalty that builds up at the same time as interest.
  • However, the IRS has the power to waive all interest and penalties if you can show reasonable cause.

With TurboTax Live Full Service, hire a professional to handle every aspect of your taxes. Or, you can use TurboTax Live Assisted to complete your taxes correctly and with specialists at your side. Using TurboTax, you can confidently file your own taxes.

Frequently Asked Questions

What if the amended return results in a higher tax bill?

You will be required to pay more taxes if changing your tax return increases your tax liability. After logging into the IRS system, you may either go online and make a payment at their website or submit a check along with the adjustment. You can reduce the interest and penalties you will have to pay by paying immediately rather than waiting for the IRS to issue you an invoice.

How long does it take the IRS to amend your return?

Remember that the IRS may need up to eight weeks to process an amended tax return if you file it on paper as opposed to e-filing. Using the IRS Where’s My Amended Return? you can check the status of your amended return. After mailing your return, allow three weeks for the information to appear in the IRS system.

Do you need to file both a federal and state tax return?

You will probably need to file an amended tax return with your state if you amend your federal income tax return. A tax return amendment form is specific to each state. When you complete your federal amended return with TurboTax, it will choose the right state forms for you and provide directions for submitting them to your state.

Do you need to update your withholding after amending your return?

You might want to change your withholding if your amended forms reveal that you owed a sizable amount in taxes or received a sizable refund. You can calculate the amount of tax that will be taken out of your paycheck using the free withholding calculator, then fill out a new Form W-4 and deliver it to the payroll or human resources department of your workplace.

Can I use tax preparation software to amend my return?

Yes. The process of making changes to your federal income tax return is outlined in detail by TurboTax.

Can I e-file Form 1040-X?

Yes, for tax years 2019 and after, the IRS now accepts e-filed modified returns. However, your original tax return must have been filed online in order for an amended return to be submitted electronically.
You can normally electronically file amended returns for the two preceding tax years as well as the current tax year through the IRS system. Prior years’ amended returns cannot be electronically filed. You must print these revised forms for older years and mail them into the IRS.
Not every provider of tax software supports electronically filing revised returns for years besides the current one. If not, you must mail your updated tax return to the IRS on paper.

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