5 Common Questions about filing an amended tax return

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5 Common Questions about filing an amended tax return -

5 Questions Typically Asked about Filing an Amended Tax Return - TaxACT

Everybody makes mistakes - no exceptions . If you find an error or something that you missed on your return after product, do not panic.

Fortunately, most mistakes in life can be secured, and your return is no exception.

When should I file an amended tax return?

a 1099 form that slipped under the couch, an important business deduction you forgot, or anything else that changes your tax return may mean you have to file an amended return.

Sometimes you have to file an amended return for something that is not your fault. For example, your employer may send a corrected form, which means the amounts that you used when you filed your return must be addressed.

Unless the change to your tax debt is inconsequential, it is best to change your return.

In some cases, you must file an amended return, even if the changes do not affect the amount of tax you owe. For example, if you simply entered the wrong social security number, you must change your return to avoid future problems.

How to file an amended return

The most important thing to know about filing an amended return is that you should not start and file Form 1040 and all attached forms again. You file your tax return once complete. After that, you file Form 1040X -. Tax returns modified on US personal income and change only the elements that are incorrect

If the incorrect items entered on other forms or schedules, you attach the schedules or forms to form 1040X corrected. Do not attach copies of the forms or schedules that do not change.

To file the Form 1040X in TaxACT Deluxe, click Edit under federal Return the main tab Deposit .

You can not send e-file your amended return. Instead, the IRS requires that you print the form and file it by mail.

Do not forget your tax return on the State's income. If you live in a state with an income tax state, you usually edit the two statements.

Am I in trouble with the IRS?

In other words, not really.

Even if you make a huge mistake, like forgetting to take your W-2 form, the IRS has seen it all before. Unless you have committed fraud or tax evasion, they will not hold against you. All they really want is money.

That said, the sooner you correct any errors in your report, the better.

If you need more tax because of an error on your return, the sooner you file and pay the tax, worth less and the interest you will pay.

do not automatically assume you have to pay a penalty. If you change your statement before maturity (before April 15), then your amendment is timely, and no interest or penalties accrue. In addition, the IRS can be very reasonable, especially for an error for the first time. Attach a statement with your amended return and ask specifically for a "reduction" of any penalty.

Besides, if you need to change your statement, you might as well finish. It probably will not be as hard as you expect.

How can I avoid errors in the future?

You can avoid most tax return errors by organizing your information before doing your taxes and not wait until the last minute to begin your return. Tax software supports calculations and checks your return for errors, missing information and potential savings.

It is also very important to read your tax return before you file it. By comparing the return of last year can help to refresh your memory on deductions and other items.

Do not hang up on your return unfiled too long, though, because you are afraid, it is not perfect. It is best to file your return on time even if you have to change it later, than pay penalties for late filing.

Have you ever asked a penalty abatement for a tax return?

photo credit: ktpupp via photopin cc

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