Can You Redo Taxes From Previous Years?

Tax filings from past periods can be adjusted if errors or changes are discovered. This involves submitting an amended tax return, which allows individuals to correct previously reported information to the tax authorities.

Reasons for Amending Your Return

Individuals frequently amend their tax returns to correct various issues that impact their tax liability. One common reason is discovering an error on the original return, such as a mathematical mistake or an incorrect Social Security number. Overlooked income, which might include additional W-2s or 1099s received after the initial filing, also necessitates an amendment.

Another frequent scenario involves claiming missed deductions or tax credits that were not utilized on the original return. This can occur if a taxpayer later realizes eligibility for a credit, such as an education credit or the Earned Income Tax Credit. Changes in filing status, such as from single to married filing jointly, or adjustments to the number of claimed dependents, also require an amended return.

Preparing Your Amended Return

Preparing an amended tax return requires careful attention to detail and specific documentation. Individuals use Form 1040-X, Amended U.S. Individual Income Tax Return, available directly from the tax authority’s website. To complete Form 1040-X, have a copy of the original tax return you are amending. Additionally, any new or corrected income statements, such as W-2s or 1099s, along with receipts for deductions or credits, and other supporting documentation for the changes, are necessary.

Understanding the deadlines for amending a return is important. To claim a refund, you must file Form 1040-X within three years from the date you filed your original return or two years from the date you paid the tax, whichever is later. If you filed your original return early, it is considered filed on the April tax deadline. If you owe additional tax due to the amendment, file and pay as soon as possible to minimize potential penalties and interest.

Form 1040-X is structured with three columns: Column A displays the amounts as originally reported on your return. Column B is for entering the net increase or decrease for each line item being changed. Column C then shows the corrected amounts, which are derived by adding or subtracting the amounts in Column B from Column A. A detailed explanation of the changes and the reasons for them must be provided in Part III of the form.

Submitting Your Amended Return

Once Form 1040-X is completed, submit it. Electronic filing for Form 1040-X is now available for the current and two prior tax periods through tax software. If e-filing is not an option, the paper form must be mailed to the appropriate tax authority address, which varies by location and is typically found in the form’s instructions.

When mailing the form, only include supporting documents directly related to the changes being made, such as corrected W-2s or 1099s, and not the entire original return or all original documentation. It is important to sign and date Form 1040-X, and if filing jointly, both spouses must sign. Keeping a copy of the submitted form and any attachments for your records is also a prudent measure.

After Submission

After submitting an amended tax return, anticipate a processing period that is often longer than for original returns. The tax authority generally advises allowing eight to twelve weeks for processing, though some cases may take up to sixteen weeks or longer. Delays can occur if the return contains errors, is incomplete, or requires additional information.

To track the status of an amended return, a dedicated online tool is available, typically called “Where’s My Amended Return?”. This tool becomes accessible approximately three weeks after the submission date. You will need your Social Security number, date of birth, and ZIP code.

Upon processing, you might receive a refund if the amendment results in a lower tax liability, or you may owe additional tax if the changes increase your obligation. The tax authority may issue a notice requesting further information or clarification before finalizing the adjustment. Maintain copies of all submitted documents and correspondence related to the amended return for future reference.