IRS Forms Standard Deduction or Itemize? Business or Hobby? Amending a Tax Return

Amending a Tax Return That's Been Filed

What do you do if you need to correct an error on a tax return you've already filed with the IRS?

A calendar marked up with a red marker

As a practical matter, minor mathematical errors do not require formal correction by the taxpayer on a Form 1040X because the IRS corrects simple math errors as part of normal processing. However, if you or the IRS realize or discover that a particular schedule or form should have been attached, the 1040X is the method for correcting the oversight. Or, if you learn that you qualified for and could have claimed a substantial credit, you would use the 1040X to file that correction, as well.

Tax Amendment Scenarios

You realize that you did not include documented income after you sent in your tax return. You overlooked a W-2, 1099-MISC, or 1099-R.

Or, your employer notifies you that a company internal audit revealed that the W-2 issued to you two years prior was incorrect. Your income was actually more than they had reported to you and the IRS. They sent you a corrected W-2 and notified the IRS of the error. You have three years from the year of the error to make the change to your return for that year. But, you're not sure how to go about making the change. The tax doctor can tell you what to do.

Or, after submitting your 2008 return, you learn you qualified for a sizeable credit because of the advanced energy system you had installed in your home that year.

2008 Versus 2009 First Time Homebuyers Credit

One of the issues expected in the 2010 tax season is the First Time Homebuyers Credit. The 2008 version of this credit was more like an interest-free loan. A qualified taxpayer could receive a $7,500 tax credit, but only on condition that they agree to pay the money back in full at $500 per year for 15 years. For qualified taxpayers, the 2009 version of the credit allows an $8,000 credit that does not have to be paid back at all. If you took advantage of the 2008 credit, you may want the tax doctor to take a look at your situation to see if any beneficial corrective action is possible by filing an amended return with IRS Form 1040X.

All 1040X filings apply to returns going back three years and must be submitted by regular mail service. E-filing is not available for amendments. Contact the tax doctor for details.