CARL WATTS & ASSOCIATES

April 23, 2012

www.carlwatts.com
office@carlwatts.com
Washington DC
 tel/fax 202 350-9002
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Mistakes happen, everybody knows that, including the IRS. The question is, what kind of mistake makes it necessary for you to file an amended tax return?
If you have already mailed your tax return and you discover some math error or that you left out a form or schedule, don’t hold your breath, the IRS service center may correct the math error and even accept your return with the missing form or schedule.


If you need to correct a piece of information that will alter your tax calculations, like your filing status, dependents, income, deductions or credits, then you need to file an amended tax return using Form 1040X (Amended U.S. Individual Tax Return).

Here are some of the reasons for filing Form 1040X:

  • To report additional income and/or additional withholding from a W2 or a 1099 Form;
  • To report changes in your above-the-line deductions (IRA contribution, tuition, health savings accounts, self-employment tax deduction, alimony paid, etc.);
  • To change your filing status (from married filing jointly to head of household, for instance):
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To claim an additional dependent or remove one;
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To claim or remove a tax credit;
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To report a change in your itemized deductions or standard deductions.



You can download or order Form 1040X from the IRS website. To be able to fill out the form correctly, you will need your copy of the return that you have already filed, and the new tax return containing the necessary correction.

The form has three columns. Column A shows original or adjusted figures from the original return. Column C shows the corrected figures. The difference between Columns A and C is shown in Column B. There is an area on the back of the form to explain the specific changes being made and the reason for each change.
Amended Tax Return
You have to be very careful when filling out Form 1040X, especially Part C which summarizes the change in your tax return. It is recommended to be very specific and concise, since amended tax returns are carefully scrutinized by the IRS.

Check twice all information you report, attach the new tax return, any additional schedule or form, and any other pertinent documentation.

Also, worth mentioning since Form 1040X is a standard one, don’t forget to write the tax year you are amending at the top of the form.

If you need to amend several returns, you’ll have to fill out a separate Form 1040X for each year.
Don’t forget that Form 1040X must be filed within three years from the date of your original return or within two years from the date you paid the tax, whichever is later.
Returns filed before the due date (without regard to extensions) are considered filed on the due date.

Your amended tax return has to be mailed, it cannot be filed electronically.

As it is usually the case, adjustments to the federal return will carry over to the state, so you will have to amend your state return as well. Obviously, the amended forms vary from state to state; for instance:

  • For DC and Virginia you simply need to check "Amended Return" in the box in the upper right-hand corner of the return form;
  • For Maryland, you need to file a Form 502X or Form 502XS.

Just like with the amended federal return, you will need to attach all pertinent documents, including a copy of your federal return.

Although all this may not seem too complicated, don’t underestimate the value of professional advise in all your dealings with the IRS and the state department of revenue.
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