An amended tax return is a revised version of a previously filed tax return, submitted to correct errors or omissions. Taxpayers file an amended return when they discover mistakes, such as unreported income, incorrect deductions or credits, or filing status changes that impact their tax liability.
To file an amended tax return, taxpayers must use IRS Form 1040-X (Amended U.S. Individual Income Tax Return). The form allows taxpayers to:
- Add or subtract income.
- Claim or remove deductions or credits.
- Correct their filing status or dependents.
The IRS recommends filing an amended return as soon as possible after discovering an error. Taxpayers typically have three years from the date the original return was filed (or two years from the date the tax was paid, whichever is later) to file an amended return and claim a refund.
Amended returns can take several months to process, and taxpayers may be subject to additional taxes, penalties, or interest if the changes result in a higher tax liability. Filing an amended return can prevent potential issues with the IRS and ensure that the taxpayer’s records are accurate and up-to-date.