What Happens When You Amend a Tax Return?

An amended tax return is a document filed with the Internal Revenue Service (IRS) to correct information on a previously submitted tax return. This process is necessary when errors are discovered after the initial filing, such as misreported income, overlooked deductions, or missed tax credits. Amending a return ensures accuracy in your tax obligations, whether it results in a refund owed to you or additional tax due to the government.

Gathering Information and Completing the Form

To amend your federal individual income tax return, use IRS Form 1040-X. Gather a copy of your originally filed tax return for the year you are amending, along with all supporting documents related to the changes. These might include corrected W-2s or 1099s, receipts for missed deductions or credits, or corrected statements of income or expenses.

When completing Form 1040-X, you will encounter three columns for each line item: Column A for the original amount, Column B for the net change (increase or decrease), and Column C for the corrected amount. First, transfer the figures from your original tax return into Column A. Then, calculate the difference for each line where a change is needed and enter this amount in Column B, indicating whether it is an increase or a decrease. Finally, combine Column A and Column B to arrive at the corrected amount, which you will enter in Column C.

Part III of Form 1040-X is the “Explanation of Changes” section. Here, you must explain the reason for each change. For example, if you are amending due to additional income or claiming a missed deduction, you would explain why. This explanation helps the IRS understand your amendment.

Attach all forms and schedules affected by the changes. For example, if you are amending itemized deductions, include a corrected Schedule A. Any new or corrected income documents, such as W-2s or 1099s, that support your changes should also be attached. Do not attach a new Form 1040; Form 1040-X is the primary document for the amendment.

How to Submit Your Amended Return

After completing Form 1040-X and preparing all supporting documentation, you have two options for federal amended returns: mailing a paper form or e-filing. The mailing address depends on your geographic location; the IRS provides specific addresses for each state. Using certified mail with a return receipt is recommended for paper submissions, as it provides proof of mailing and delivery.

The IRS allows e-filing of Form 1040-X for certain tax years, typically the current year and the two prior periods, if the original return was also e-filed. This option can eliminate mailing time and may lead to faster processing. E-filing is generally done through tax software. If you are amending an earlier tax year not eligible for e-file, or if your original return was paper-filed, you must submit your amended return by mail.

If you amend your federal tax return, you may also need to amend your state tax return. State amended returns must be filed separately and follow state-specific procedures and forms. Consult your state’s tax authority website for instructions.

What to Expect After Filing

After submitting your amended tax return, processing time can vary. The IRS advises allowing up to 16 weeks for processing, though some cases may take longer. Amended returns often take more time to process than original returns due to additional review. Errors, incompleteness, or the need for additional information can extend processing times.

You can check the status of your federal amended return using the IRS “Where’s My Amended Return?” online tool. This tool provides status updates for the current tax year and up to three prior years. To use it, you will need your Social Security number, date of birth, and the ZIP code from your tax return. It may take up to three weeks for your amended return to appear in the system. The tool indicates if your return has been received, adjusted, or completed.

If your amended return results in a refund, the IRS will issue it via direct deposit to the bank account on your return or as a paper check. Direct deposit is available for electronically filed amended returns for recent tax years. If your amendment results in additional tax due, make the payment promptly to avoid penalties and interest. Payment options include IRS Direct Pay, sending a check or money order by mail, or other electronic methods.

The IRS may contact you after you file an amended return, sending a notice requesting additional information or clarifying details. Respond promptly to any IRS correspondence to prevent processing delays. Keep copies of your amended return and all supporting documentation. While the general record retention period for tax documents is three years, keeping amended returns and related records longer is advisable due to varying periods of limitations for tax assessments and claims.