Well, tax day is behind us. That wasn’t so bad… was it?
But if you have a nagging feeling that you missed something… maybe some extra income from that little stint you did for a local Oklahoma City theater company? Maybe a deduction that you just realized you were qualified for? Or did a life change… like a new baby… slip your mind because of the sleep deprivation? 😉 (Believe me, it happens more than you think.)
If any of those make you go “hmmm,” then you might need to file an amended return (Form 1040-X) to set things right.
The IRS’s Interactive Tax Assistant tool can be helpful for determining if you need to file an amended return.
But since I also take helping you seriously, let me give you an overview of common situations and best practices for filing an amended return.
First of all, if you just made some mathematical errors or forgot to include a few forms, then you don’t need to worry about filing a 1040X. The IRS will make those corrections, and they’ll for sure let you know if you’re missing any forms or documentation.
On the other hand, there are some common scenarios when filing an amended return would be in your best interest, for example…
Unreported income: We all make mistakes, and tax returns are no exception. Did you miss some income or forget to report a side hustle? Unreported income can trigger an audit, so this one is pretty important to amend if there’s an issue. The IRS wants you to report anything you have coming in.
Forgotten deductions: Did you overlook student loan interest payments or medical expenses that could have been deducted? Maybe you just found out about one you never knew you could take.
Life events: Did you get married this past year (or the opposite)? Did you have a child or did one of your children move out? These life changes impact your filing status and dependency exemptions. Using this to your advantage can give you some significant benefits, like claiming child tax credits.
Besides keeping you from getting audited for missing important information on your tax return, some other ways filing an amended return can be helpful include:
– Recovering cash flow in your Central Oklahoma business. If you wrote off a bad debt as a loss on your original returns, an amended return can help you claim a bad debt deduction.
– Claiming a helpful tax credit. Perhaps you just found out that you qualify for the Earned Income Tax Credit (EITC) but didn’t claim it on your original tax return. An amended return could come in handy to make sure you don’t pay more than you absolutely have to.
Now, before you jump into filing an amended return,
1) Make sure the IRS has accepted your original return, and
2) Know that the IRS typically takes 12-16 weeks to process amended returns once you submit them.
So, be patient.
If, after reviewing this list, you know you need to make updates to your tax filing and want some person-to-person support, I’m here for you. And while we’re reviewing this year’s return, we can also take a look at other past tax filings to identify errors or missed deductions and potentially help you recover any amount you overpaid in the past.
Grab a time with me when you’re ready:
Helping you pay only what you must,
Robin Harris
