Today we’re going to be looking at a few amended tax return tips and looking at what you should know about the process. Okay, so let’s say you were very well-prepared this year, and that you filed your tax return well in advance. The pressure was off, and now you could sit back, relax, and wait to do the same thing again next year. But wait. In your haste to get it filed on time, you failed to declare some additional income from freelance work you forgot about. Now is the time to start searching for amended tax return services. Filing an amended tax return may sound simple enough, but there are a number of pitfalls to watch out for, which could hurt you financially. That’s the last thing we want to happen to you, which is why for today’s article, we’re going to share a few useful tips with you to help you amend your tax return and look at what you need to know.
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Why should you amend your tax return? – As you are probably aware, the IRS takes matters regarding your taxes and personal finances very seriously. Amended tax return services are now more highly sought-after than ever before, and we can understand why. If you choose to file your tax return yourself, rather than to hire a professional, you may find yourself making errors. These errors could come in the form of a typo, or you may simply forget to declare certain earnings or expenses that you made the previous tax year (like we touched upon in the opening paragraph). One misspelled name may not sound like much, but to the IRS, it is a very big deal, and any errors you make will need altering. If you have made an error when filing, or if you need to make any changes to the tax return you filed, you will need to file an amended tax return.
Which form do you need? – If you need to file an amended tax return, you will of course require yet another form. But which form do you need? Well, you will need to request what is known as a 1040X form. It may sound like a model of sports car, but this is actually an amended tax return form, so make sure that is what you request.
What about math errors? – When we spoke about errors resulting in an amended tax return, you may have noticed how we didn’t actually talk about math errors. That wasn’t an oversight on our part, it was deliberate. You see, the IRS will normally take care of any mathematical errors for you.
How about missing forms? – If you happen to forget to attach a form, a W-2 perhaps, don’t worry about requesting a 1040X form, as the IRS will get in contact with you, normally by mail, and will let you know which forms and info they may require from you.
How soon should I amend my tax return? – When it comes to matters regarding amended tax returns, you can afford to be a little relaxed when it comes to timings. As you know, each year you need to file your taxes, or hire a professional to take care of that for you. As for amended tax returns however, you need to file within 3 years of submitting the return which needs amending, or within 2 years from the date where you paid the tax. Basically, whichever is the latest. Although you have years, the IRS do not conveniently forget things, so you will need to get it done, and preferably sooner rather than later to ease the pressure.
How should they be amended – In a world where more and more services are becoming paperless and more heavily reliant on modern technology, there are some things that are still done ‘old school’. Amended tax return matters are a great example of this. As mentioned, these amended tax returns are all filed on a form known as form 1040X. This form is paper only, which means that you can’t file it electronically, no matter how awesome your internet connectivity may be.
How about refunds – So far we’ve only focused on the assumption that the reason for you filing an amended tax return, is because you may have made a mistake and may owe the IRS money. Another great reason to file an IRS amended tax return however, is because of the fact that you may be eligible for a refund from the IRS. Again, from the time of submitting the tax return, or paying the tax, you either have 3 years or 2 years to file, depending on which happened to come later. If you are due two refunds from two individual tax returns, you should only file one at a time. So basically, take care of the refund for one year, and once you receive the money and have taken care of that, you can then file for the next year you are owed. Don’t try to file two at once.
How soon should you pay – When it comes to an amended tax return, if you do owe the IRS, you should always pay them as soon as you possibly can. The reason for this is to prevent interest from building up, and to avoid any penalties for late payments and such like. It also means that once it’s paid, it’s paid, so you no longer have it hanging over you.
Get a brief evaluation today at 877-788-2937.