If you discover, after you have filed your return, that you’ve overlooked a deduction or credit, or that you’ve forgotten to report income, you should file Form 1040X. Form 1040X: Amended U.S. Individual Income Tax Return is used to correct errors or omissions on your original return. You might receive an additional refund or you might owe additional taxes as a result of the correction.
If you’re due a refund, the IRS will send it to you once the amended return is accepted. If you owe tax as a result of the amended return, you should send the amount owed to the IRS along with Form 1040X. If any interest or penalty is due, the IRS will bill you.
Example: In June 2011, you discover that you didn’t include on your 2010 return the $500 dishwasher (fair market value) that you won on a game show. You should file Form 1040X for 2010 to include the $500 value in your income.
When you file Form 1040X, you must attach any form, schedule, or statement that changes or would have been required had your original return been filed using the current method.
Example: You originally filed Form 1040A. When you found that you hadn’t reported all your income, you also discovered that itemizing deductions would reduce your tax liability. You can claim your itemized deductions on Form 1040X, but you also need to complete Schedule A and attach it to the Form 1040X.
When amending a return for any reason, it’s a good idea to revisit your whole return. Look for deductions, credits, and exemptions that you might have missed the first time around. Also, review the filing status you used on your original return. Many taxpayers don’t realize they’re eligible for the head of household or qualifying widow(er) filing status, both of which can save them considerable tax dollars.
Note: The IRS extended the filing deadline this year to April 18 due to the District of Columbia's Emancipation Day holiday on April 15.
Generally you must file an amended return within 3 years from the date you filed your original return, or within 2 years from the date you paid the tax, whichever is later. If your return was filed on or before the filing deadline, April 18 is considered the filing date. If an extension was granted, the date of filing is the actual date that you filed your return within the extension period, or April 18 if your return was filed after the extension period expired. If you’re amending your return because of a bad debt or worthless security, then you have 7 years after the due date of your original return to file the amended return.
Example: You want to amend your 2010 tax return, which you filed on April 2, 2011. Since the IRS considers the date you filed your return to be April 18, 2011, you have until April 18, 2014, to file an amended return.
If you're amending your return because of a bad debt or worthless security, then you have 7 years after the due date of your original return to file the amended return.
Additionally, an amended return can be filed after 3 years for a year to which a net operating loss is carried. The amended return must be filed within 3 years of the due date of the return for the year in which the NOL arose.
Example: An NOL arose in tax year 2010 and is carried back to tax year 2008. The amended return for the 2008 tax year may be filed at any time until April 18, 2014.
Note: The IRS generally has 3 years to assess additional taxes. However, longer periods apply for significant under-reporting of income or fraud.
Form 1040 X has one column entitled “Correct Amount” or “Correct Number or Amount.” The entries made in this column will be those that you would have made on your original return had it been done correctly at the time originally filed. The IRS suggests that you make the entries that will go on Form 1040X in the margin of your original Form 1040 before transferring them to the amended return.
Example: If you chose the wrong filing status you would have been granted the wrong personal exemption on your original return. For instance, for 2010 you would get a personal exemption of $5,700 if you filed your original return as single. However, you would be entitled to a standard deduction of $8,400 if you filed as head of household. Therefore, it would be necessary to amend your return if you realized after the original return had been filed that you were entitled to head of household filing status. You would need to check the “head of household” box and in Part A complete lines 1-30 of Form 1040X as directed by the From 1040X instructions.