Tax Tips

According to the IRS, the IRS service center will usually notify you of errors in math or request forms (such as W-2s) or schedules you left out. In these instances, you do not need to amend your return. Either accept the proposed IRS change or provide evidence that the proposed change is incorrect. If the IRS requests missing documents, simply provide the requested information.

If you discover that you've made an error after your return has been filed, you may need to amend your return.

You'll need to file an amended return if any of the following were reported incorrectly:

• Your filing status
• Your total income
• Your deductions or credits

Filing an Amended Return

To file an amended return, fill out Form 1040-X - Amended U.S. Individual Income Tax Return and include copies of any schedules that have been changed or any W-2s you did not include with your original return. To be entitled to a refund, the form generally must be filed within 3 years after the date you filed the original return or within 2 years after the date you paid the tax, whichever is later.

Completing Form 1040-X

Form 1040-X is designed with 3 columns. Column A is used to show the figures from the original return. Column C is used to show the correct figures. The difference between the figures in Columns A and C is shown in Column B. On the back of the form, you need to explain the specific changes being made on the return and the reason for each change. If the changes involve another schedule or form, attach it to Form 1040-X. Be sure to enter the year of the return you're amending.

There are exceptions to the 3-year rule for certain items such as net operating losses, general business credit carrybacks, bad debts and worthless securities. Review the instructions to Form 1040-X for other exceptions.

If you are filing more than 1 amended return, be sure to mail each return in a separate envelope to the service center for the area in which you live.

A change in your federal return may affect your state tax liability and require an amended state return. For information on state changes, contact your state's Department of Revenue.