So you already did the math and double checked everything on your tax return. Now, that everything has been checked, you dropped the return in the mail. But despite your best efforts, you still forgot something or made a foolish mistake.
Considering how complicated it can be, it’s not uncommon to forget something on your taxes. Maybe you forgot to report some income on your 1040 or a new 1099 just came in the mail. What should you do now? Don’t panic. You still have a chance to fix those errors by filing an amended tax return.
An amended tax return allows you to file again in order to add credits or deductions you have missed, correct your income or your filing status.
If any of the following apply to you, consider filing an amended tax return.
Reporting additional income
You were too eager to file your tax return that you have already sent it even before you 1099, K1s and other information showed up in the mail. Upon checking, you then realized that the income is much higher as compared to the one you reported. This calls for an amended tax return.
Change your filing status
Choosing the wrong filing status can have a big financial impact. After all it is used to determine your tax rates, standard deductions and brackets your income is subject to. The IRS allows you to change your filing status, but only if it was filed within 3 years from the original filing date.
Changing the number of dependents
If you accidentally claimed dependents you weren’t eligible for or you didn’t claim a dependent you could have, then go ahead and file an amended tax return. The IRS won’t know until you tell them.
If you amend, make sure that you correct everything. You can’t just cherry-pick the ones in your favor and leave those that increase your tax liability.