An amended tax return filed is for correcting previous tax return(s). In 2021, you can file an amended tax return for the 2020 taxes or previous year tax returns.
The most common reason why taxpayers file an amended tax return is when they make errors on their tax returns or miss claiming certain credits or deductions. In a situation where you overpay taxes in a previous year, you can amend a tax return and correct those mistakes to qualify for a higher tax refund. You can also correct mistakes on your tax return in instances where you underpay taxes.
Although it will take quite some time for the IRS to process your amended tax return, it can surely come with benefits. If you overpaid taxes, you will receive your remaining tax refund for the previous tax years you deserve. It is worthy to wait for an amended tax return to be processed.
Filing Amended Tax Return – Form 1040X
First and foremost, you can only file an amended tax return by paper. The IRS doesn’t accept amended tax returns electronically. Every taxpayer who wants to file an amended tax return must do it on paper and mail it to the IRS. Also, if you’re amending a tax return for more than one year, you must file Form 1040X for each year.
Note: If there are tax forms or schedules you need to make changes, you must attach it to Form 1040X.
With that said, filing an amended tax return goes beyond just the 1040X, so make sure to file these tax forms if you’re making changes to your deductions for example.
As for how long it’s going to take the IRS to process your amended tax return, it can take up to 16 weeks. This is due to the IRS not only reviewing your amended tax return but additional tax forms and schedules, and your previously filed tax return. If you were to think about it, 16 weeks is substantially fast considering the work the IRS needs to put.
Get Form 1040X and start filling out one online and print out to mail the IRS from here.
Filing an amended tax return because you owe more tax
Upon filing your Form 1040X because you owe more taxes, you must pay the unpaid amount as soon as possible. Even though you’re filing an amended tax return to correct the mistakes, you will be subject to interest and penalty charges. However, paying the unpaid tax amount early will limit the interest and penalty.
You can pay taxes using your credit card with about 1.80% processing fee or with bank account fee-free. Learn more about paying taxes online.
Filing an amended tax return because you owe less tax
Assuming you will claim a tax refund with your amended tax return, you must file Form 1040X within three years after the date you timely filed your original tax return. Take note that tax refunds with amended tax returns aren’t direct deposited. If you’re due a refund, you will be issued a check.