What Happens if I Need to Amend My Tax Return?
If you discover a discrepancy in the tax return you’ve already filed, you may or may not need to amend it. Not every issue needs to be addressed, but there are some that do warrant amending. Knowing the difference between the two is key, and if you do need to make an amendment, working closely with a well-established Philadelphia tax consulting agency is advised.
When an Amendment Is Not Necessary
There are certain instances when an amendment is not necessary, and the IRS encourages you not to file one. These include all the following:
- You receive a letter from the IRS informing you that they adjusted your tax return. In this instance, you should ensure that the letter is legitimate and should proceed by carefully following the instructions provided.
- If you made a mistake in the e-file forms you’re using, you can make adjustments at any point up to the time that you hit file. Most websites provide ample reminders to check your work and to make adjustments as you go, which makes catching mistakes before they become a problem much easier.
- If you filed your tax return and the IRS rejected it, it’s your opportunity to correct any errors and simply file again. Because your return wasn’t accepted by the IRS in the first place, there is no reason to file an amendment.
If you entered the wrong bank account information on your return, you should correct the matter, but you needn’t file an amendment to do so. Instead, you can contact the IRS at 800-829-1040 and ask them to stop your direct deposit – but you must do so before your return posts on Where’s My Refund? Due to security concerns, the IRS doesn’t reroute refunds, but once a refund bounces back, it initiates the paper check process.
When to Amend
Amendments are filed on Form 1040-X and are generally reserved for instances when the error in question changes your tax bottom line, which refers to the amount of taxes you owe or the size of the refund you are entitled to. Common examples that support amendment include the following:
- You received an amended W-2 or 1099, or forgot to include income on your return.
- You filed under an incorrect status, including single, married filing jointly, married filing separately, head of household, or qualified surviving spouse.
- You claimed deductions or dependents that you’re not entitled to or failed to claim those you were entitled to.
If you are entitled to money back, it’s important to note that you have only two years from the date you paid your taxes or three years from the date you filed your return – whichever is later.
Turn to Focused Philadelphia Tax Professionals for the Help You Need
The dedicated Philadelphia tax professionals at Phoenix Tax Consultants, LLC, are well-versed in the intricacies of tax amendments and have the experience and professional insight to help you protect your bottom line while remaining tax compliant. Learn more by contacting us online or calling us at 610-933-3507 today.