How To Amend Taxes

If you need to amend taxes for the current or past year’s tax returns, you will need to use the correct form for the federal amended return and the correct form for the state tax return if the federal change will affect the state tax return. At first glance, the amended return can look complicated, but it is user friendly.

Things you'll need:

• 1040X Amended U.S. Individual Income Tax Return
• Original tax returns
• State form for amended returns
• Documents to support change

1. Enter your personal information as it appears on the original return. On line A, you enter your filing status. Check the box for the tax year that you are amending on line B and on line C, you will explain why you are making changes to the original tax return.
2. Enter any changes to income and deductions in the first section. If you have a change in adjusted gross income, enter that amount on line 1. For changes in itemized deductions, enter the correct amount on line 2. When you amend taxes, you made need to change exemptions on line 4. If so, you must use the worksheet on the second page of the 1040X to document changes.
3. Change the tax liability in the next section if this applies. You can change the tax, credits and other taxes that you entered incorrectly on the original return.
4. Proceed to the payments section. You will enter any corrected amounts for federal tax withheld, estimated tax payments, earned income credit and any refundable credits that you may have taken or not taken. Note: If you change your adjusted gross income, the earned income credit will change. Therefore, you will need to recalculate the EIC.
5. Calculate the final changes in the last section. This will tell you if you owe any tax to the IRS or if you will have an additional refund coming. Sign and date the form to complete the amended taxes.

Tips

• Note that the new forms as of 2010 are different from any prior 1040X amended tax return forms. Make sure to use the newer form shown in the Reference section.
• If you changed your filing status, exemptions, adjusted gross income, itemized deductions or the earned income credit, you will need to amend taxes for the state.

Resources:

IRS: 1040X Amended Return Form

IRS: Publication 1040X Instructions and Addresses