The IRS in their Issue Number: COVID Tax Tip 2021-157 reminds us that there are several reasons to amend your tax return, such as, entering income (or expenses if business – Schedule C or rental – Schedule E) incorrectly, not claiming credits for which they’re eligible, claiming deductions incorrectly, etc.
Note that the IRS may correct math or clerical errors on a return and may accept returns without certain required forms or schedules. In these instances, there’s no need for taxpayers to amend the return.
Those who do need to amend their tax return might have questions about how to do so. Here are some things they should know, taxpayers:
- May now use tax software to file an electronic Form 1040-X. At this time, only tax year 2019 and 2020 Forms 1040 and 1040-SR returns can be amended electronically and only if the original 2019 or 2020 tax return was also filed electronically.
- Who cannot or chose not to file their 1040-X electronically should complete a paper Form 1040-X.
- Mail a paper 1040-X to the IRS address listed in the form’s instructions PDF under Where to File. Taxpayers filing Form 1040-X in response to an IRS notice should mail it to the IRS address indicated on the notice.
- Should attach copies of any forms or schedules affected by the change.
- Need to file a separate Form 1040-X for each tax year. When mailing amended returns to the IRS, place each tax year in a separate envelope and enter the year of the original return being amended at the top of Form 1040-X.
- Should pay additional tax owed as soon as possible to limit interest and penalty charges.
- Must file Form 1040-X to claim a refund within three years from the date they timely filed their original tax return or within two years from the date they pay the tax, whichever is later.
- Can track the status of an amended return three weeks after mailing using the Where’s My Amended Return? tool.
Tax topic 308 Amended Returns – https://www.irs.gov/taxtopics/tc308