How Long Can You Amend a Tax Return?

An amended tax return corrects information on a previously filed federal income tax return. Taxpayers might need to amend their return if they discover a missed deduction, an overlooked credit, forgotten income, or an error in their filing status or number of dependents. This allows individuals to adjust their tax liability, claim any refund owed, or pay any additional tax due.

Timeframes for Amending a Tax Return

You can amend a federal tax return within three years from the date you filed your original return or two years from the date you paid the tax, whichever date is later. If you filed your original return early, before the typical April tax deadline, the three-year period begins counting from that April tax deadline.

Extended periods to amend a return and claim a credit or refund may apply in certain circumstances. If you are affected by a federally declared disaster, you may have up to an additional year to file a claim. Individuals serving in a designated combat zone or contingency operation may also receive additional time, provided they meet specific requirements.

Special rules apply to specific financial situations. For bad debt deductions or worthless securities losses, the timeframe to amend is extended to seven years from the due date of the return for the year the debt became worthless or the securities became worthless. For foreign tax credits, you have 10 years from the due date of the return (without extensions) for the year the foreign income taxes were paid or accrued to claim or change a foreign tax credit. Claims arising from loss or credit carrybacks, such as net operating losses, may also have extended deadlines, within three years after the due date of the return for the year the loss or credit arose.

Preparing Your Amended Return

To correct a previously filed federal income tax return, you will use Form 1040-X, Amended U.S. Individual Income Tax Return. This form is used for amending Forms 1040, 1040-SR, or 1040-NR. Before starting, gather your original tax return, any new or corrected tax forms like W-2s or 1099s, and supporting documentation for all changes.

Form 1040-X requires you to present the original amounts from your filed return, the new corrected amounts, and the difference between the two. You will need to fill out columns A, B, and C for various income, deduction, and credit lines, carefully calculating the adjustments. For example, you will update adjusted gross income, itemized or standard deductions, taxable income, total tax, and payments and credits.

An important part of Form 1040-X is the “Explanation of Changes” section, where you must clearly explain the reason for each amendment. This explanation should be specific and concise, detailing why the original return was incorrect and what is being changed. You must also attach any revised forms or schedules, such as a corrected Schedule A for new deductions, that support the changes you are making.

Submitting and Tracking Your Amended Return

Once you have prepared Form 1040-X and gathered all supporting documents, you are ready to submit your amended return. For tax years 2019 and later, you can file Form 1040-X electronically if your original return was also e-filed. If your original return was paper-filed, the amended return must also be paper-filed and mailed to the appropriate IRS address.

The processing time for amended returns is longer than for original returns, taking up to 16 to 20 weeks. You can monitor the status of your amended return using the IRS “Where’s My Amended Return?” online tool. This tool provides updates on whether your return has been received, is being processed, or has been adjusted.

There is no penalty for amending a return itself. However, if your amendment results in you owing more taxes due to an underpayment, interest and penalties may apply to that additional tax. Interest charges begin from the original due date of the tax. The penalty for late payment is 0.5% of the unpaid amount for each month or part of a month the tax is not paid, up to a maximum of 25% of the unpaid amount.