The approaching tax deadline puts pressure on many Americans to file and submit a return on time. Sometimes, that rush can lead to mistakes. Other times, a mistake may occur without you even knowing it for some time after, like an employer making a typo on a W-2. Whatever the case may be, a mistake on your taxes likely means you’ll need to file an amended return. Fortunately, that’s not terribly difficult to do.
The IRS may catch the mistake first
One of the more ideal situations in which a mistake is made on your taxes is when the Internal Revenue Service catches it quickly. The IRS writes that it may actually make corrections for you in the case of mathematical or clerical errors. If you forget to submit a form like a W-2 or another schedule, the IRS will request those forms specifically rather than ask you to resubmit the return entirely.
If the issue does require an amended return, you’ll be notified that your filing has been rejected. This typically happens within a few weeks of the IRS receiving your original return. Reasons for a rejected tax return may include selecting the incorrect filing status, not listing the correct number of dependents, or an issue relating to deductions or credits.
How to file an amended return
Whether you catch the mistake after a period of time or the IRS rejects your tax return, you’ll have to file a Form 1040-X. This is the dedicated form for amended tax returns. You are allowed to electronically file a Form 1040-X, but only if you’re amending your return from 2019 onward and only if the original return was e-filed. In these cases, the IRS notes that you may be able to use a tax software provider depending on whether they offer the ability to file a Form 1040-X. If for whatever reason you need to re-submit again, you can submit up to three amended returns electronically.
Otherwise, you’ll need to print out the appropriate form, fill it out, and mail it to the IRS. The IRS notes that you will need to also submit all necessary forms and schedules in addition, though you can re-submit the original forms with the mistakes as Form 1040-X will directly address those issues.
Typically, the process is as simple as that. According to the IRS, the average processing time for an amended return is around 20 weeks, which is not impacted by your decision to e-file. You can check on the status of your amended return using the IRS’ Where’s My Amended Return? tool after submission.
When the status on that tool shows adjusted, it means that the IRS has accepted the return and taken the appropriate action. You may receive an additional refund, a bill for a balance due, or no change at all. Thereafter, the amended return is marked complete.
If more than 20 weeks pass and your amended return still shows as processing, it likely means there was another error. The IRS cites examples like a missing signature or further errors. If more information is needed, the IRS will contact you by mail.
While a mistake on your federal return does not necessarily mean there was a mistake on your state or city return, it is possible that you may also need to amend those taxes as well. In that case, the process is largely similar, but it differs depending on where you live. If you notice a mistake in your state or local taxes, you’ll need to contact the appropriate tax agency to learn what will need to be done.
One way to ensure that your taxes are smooth and error-free is to put them in the hands of a certified tax professional. This is especially helpful if you have unique tax situations or want extra protection against audits.