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What To Do if You Realize You Made a Mistake on Your Filed Return

If you realize you made a mistake on your taxes you already filed. Don’t worry, here’s what you need to do.

If you filed your taxes by the deadline only to now find a mistake, you don’t need to worry. Usually, all you have to do is file an amended tax return (Amended U.S. Individual Income Tax Return). There are some things you should be aware of prior to filing the amended return however.

Form 1040X is the form that should filed for a tax return amended with corrections. There is not an option to e-file an amended tax return so you’ll have to file the updated return using a paper form. An amended return cannot be e-filed.

Any other schedules or forms will have to be attached to the amended return.

You should file a 1040x specifically to fix errors or make updates to information such as information that you might not have known for sure at the time of filing. For example, a form from an institution stating financial contributions arrived late. Other examples of when to amend your return are changing your filing status, correcting your income and accurately adjusting deductions or credits.

Math errors are typically caught and corrected by the IRS. An amended tax return should not be used in the case of omission. For example, if you forgot to include your W-2. In this case, the IRS will contact you requesting it specifically.

If in 2014, you claimed a premium credit using information provided by a state or federal health insurance marketplace that was not correct, you typically are not required to file a 1040x no matter what the error—this includes additional taxes that might be owed. However, The IRS might reach out to you requesting a corrected Form 1095-A so they can to validate the information.

When amending multiple returns, you’ll need to fill out a 1040X for the returns individually. They should even be separately mailed to the IRS. At the top of the form, make sure to communicate the tax year of the relevant amended return. The “mail to” address is located on the 1040x form.
If it turns out you are due an additional refund, be sure you have received your your first tax refund prior filing the amended return form. Returns that have been amended can take as long sixteen weeks for processing. It’s perfectly acceptable to cash your first refund even though you are waiting for the remainder of your actual refund.

If you’re filing Form 1040X for an amended return because you owe taxes, you should file and send the payment as quickly as you can to mitigate interest and penalties. To pay quicker, use IRS Direct Pay and have the amount be directly paid via your bank account.

Returns that have been amended using the the 1040x typically have to be filed within three years from the date that year’s return was originally filed (or within 2 years of making the payment).

Three weeks after you file, the IRS provides a “Where’s My Amended Return” widget for you to monitor the status of your amended tax return and this is available up to 3 years.Ā You can track the status of your amended return here.

If you participated in an eligible Marketplace health plan, it’s probable you filed a tax return based on a Marketplace-sent Form 1095-A. It’s likely your plan provider sent you a corrected Form 1095-A citing errors with the original. When you compare the forms, you can assess if it’s advantageous for you to file an amended tax return.

There’s a really good chance you’re entitled to larger refund or you will owe less when using the corrected Form 1095-A should the 2 Forms 1095-A contain about the same information. These are 5 of the possible differences in the 1095-A forms.

1. The premium is larger on the corrected form for the second lowest Cost Silver Plan.
2. The amount of the monthly premiums are more in the correct form.
3. The advance premium payments are lower for the Premium Tax Credit Amounts on the corrected form.
4. Your corrected form shows more coverage months
5. Your corrected form shows less coverage months.

It’s always best to discuss any tax discrepancies you may have with us. We’re happy to help make sure you get all the money that you deserve while helping you meet all of your tax obligations. Give us a call today!

Do you have the support you need to manage your small business bookkeeping? Contact us to schedule an appointment to speak with a local small business advisor.

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