Can You Redo Your Taxes If You Already Filed?

Taxpayers occasionally discover an error or omission after their federal income tax return has been filed. The Internal Revenue Service (IRS) provides a process to correct these issues. An amended tax return allows individuals to make necessary adjustments to their previously submitted tax information, ensuring accuracy and compliance with tax laws.

Understanding Amended Returns

An amended tax return serves as a revised version of a tax filing previously submitted to the IRS. Taxpayers might need to file an amended return for various reasons, such as correcting mathematical errors, omitting income, or overlooking eligible deductions or credits. Other common reasons include changes in filing status or the number of dependents claimed. The specific form used for this purpose is Form 1040-X, Amended U.S. Individual Income Tax Return.

An amended return is not a new tax filing but rather a modification of the original. While the IRS typically corrects minor mathematical errors automatically, significant inaccuracies, such as misreported income or incorrect credits, require the taxpayer to file Form 1040-X. Amending a return ensures the taxpayer’s financial records align with tax regulations, potentially preventing future complications like IRS notices or audits.

Gathering Information and Completing Form 1040-X

Before completing Form 1040-X, taxpayers should gather all necessary documentation. This includes a copy of the original tax return for the year being amended, along with any supporting documents related to the changes. Examples of supporting documents are corrected W-2s or 1099s, receipts for new deductions or credits, or any IRS notices received concerning the original return.

When filling out the form, taxpayers will use three columns to detail their changes. Column A should reflect the figures as originally filed, Column B represents the net increase or decrease for each line item, and Column C displays the corrected amounts (Column A plus or minus Column B). Taxpayers will go line-by-line, adjusting relevant entries such as adjusted gross income, deductions, taxable income, total tax, and payments or credits.

The “Explanation of Changes” section of Form 1040-X requires taxpayers to describe the reasons for amending the return. For instance, an explanation might state, “Amending return to include previously unreported freelance income of $X (Form 1099-NEC). Adjusted Schedule C and total income accordingly.” If the changes impact other schedules or forms, such as Schedule A for itemized deductions or Schedule C for business income, new or corrected versions of these supporting documents must also be attached to Form 1040-X.

Submitting Your Amended Return

Once Form 1040-X is completed, along with any necessary supporting documents, the next step involves submitting the amended return. Taxpayers generally have two methods for submission: mail or electronic filing. When mailing, send the return to the correct IRS address, which varies depending on the taxpayer’s location.

Electronic filing for Form 1040-X is available through tax software for the current tax year and the two prior tax periods, provided the original return was also e-filed. For older tax years or if the original return was paper-filed, a paper amended return is required. Taxpayers must sign and date Form 1040-X, and include all corrected schedules, forms, and relevant supporting documentation.

What Happens After You File

After submitting an amended tax return, taxpayers should anticipate a longer processing time compared to original returns. The IRS advises allowing up to 16 weeks for processing. Electronically filed amended returns might be processed slightly faster as it eliminates mailing time.

Taxpayers can monitor the status of their amended return using the IRS “Where’s My Amended Return?” online tool or by calling the IRS toll-free hotline. It can take approximately three weeks from the submission date for the status to first appear in the system. Potential outcomes after processing include receiving an additional refund, owing additional tax, or receiving correspondence from the IRS for further information or clarification. If additional tax is owed, taxpayers should pay it promptly to avoid interest and penalties.

Time Limits for Amending

There are specific time limits for filing an amended tax return, particularly when seeking a refund. Taxpayers have three years from the date they filed their original return or two years from the date they paid the tax, whichever date is later, to claim a refund. If an original return was filed early, it is considered filed on its due date for this calculation, which is April 15th.

If the amendment results in additional tax owed, the IRS has three years from the later of the original due date or the filing date to assess the additional tax. Certain special circumstances, such as bad debts, worthless securities, or foreign tax credits, may allow for extended amendment periods. Missing the general deadline can prevent a taxpayer from receiving a refund, even if the amendment would otherwise entitle them to one.