How to Fix a Tax Return Error

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Posted on by Emily in Saving Money & Finances

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How to Fix a Tax Return Error – Today is Tax Day which means people around the country are scrambling to file error-free tax returns to the IRS. I, myself am a bit of a procrastinator and left my taxes until last week and I spent all of yesterday going over the paperwork with a somewhat paranoid fine tooth comb.

When I finally hit the file button (I opted for electronic filing) I still felt a bit panicky. What if I missed something? What if I entered something wrong? The software guarantees 100% accuracy, but I could’ve misread something!

My paranoia was finally quelled once I started researching the ways in which we as income-paying US citizens can fix tax return goofs. It turns out fixing errors on your return is not only pretty easy– but there’s a relatively big window to do it.

How to Fix a Tax Return Error

If you need to amend your tax return then you’ll need to use  form 1040X. First, let’s clarify what constitutes a situation where a 1040x is necessary and then we’ll get into the nitty gritty of how to do it.

The following are errors that you can/should fix with a 1040x:

- your filing status

- dependents

- income (you forgot to report other income, or another W2/1099 arrived in the mail after April, etc)

- deductions

-  tax credits

You can’t, however, use 1040x to fix mathematical errors on your original tax return. The IRS will fix this for you.

Now, to fix your tax return you need to do the following:

1) Prepare a new 1040. That’s right– sadly you must fill out a whole new tax return. It kind of stinks, and to top it off this time you need to be a whole lot more careful. Take your time and make sure everything is correct. If you filled out a 1040EZ or 1040A last time, this time around you’re going to have to fill out the full 1040. Make sure you have the correct Schedules attached as well.

2) Prepare a 1040x. Basically the 1040x summarizes the corrections you’ve made on your new 1040. The most important part of this form is Part C where you will literally tell the IRS what you needed to change and why. If you need more space for your statement you can type it up on a separate paper.

And that’s pretty much it. Make sure you are super careful with your math before you submit it. If you’re struggling with all of this, consider talking to an accountant.

A couple other things to keep in mind:

- You have 3 years to fix your tax return from the time you originally filed.

- Most tax software approved by the IRS (see their site) will help you file an amended return.

People make mistakes on their tax returns all the time. The important thing is that you act as quickly and accurately as you can.

How to Fix a Tax Return Error

How to Fix a Tax Return Error

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