What to Do if You Made a Mistake on Your Tax Return

What to Do if You Made a Mistake on Your Tax Return

Uh oh! You already filed your tax return and just realized you made a mistake. Don’t panic – this happens to lots of people every year. The good news is there are ways to fix it.

The first thing to do is try to stay calm. Most small mistakes are pretty easy to correct. The IRS even catches and fixes some errors automatically. But if the mistake means you owe more taxes or were supposed to get a bigger refund, you may need to amend your return. Here’s what to do:

Check if the IRS Will Fix It

If you made a math error or forgot to include a form, the IRS may just fix it for you when they process your return. They’ll send you a bill if you owe more tax or another refund check if you should have gotten more money back. So it’s a good idea to wait and see if the IRS catches minor mistakes before you do anything.

Use IRS Tools to Decide If You Should Amend

The IRS website has a questionnaire that asks you questions about the mistake and tells you if you need to amend or not. TurboTax also walks you through deciding if you should amend if you used their software. These tools can help you figure out if it’s better to just let the IRS handle it or if you need to amend.

Gather Documents

To amend your return, you’ll need:

• A copy of your original return
• Any new or corrected documents like W-2s or 1099s
• Records that support any new deductions or credits you’re claiming

If you used tax software like TurboTax, you can usually access a copy of your return there. Otherwise you can get a transcript from the IRS.

Fill Out Form 1040-X

IRS Form 1040-X is the form you use to amend a return. It has columns to show:

• The amounts from your original return
• The changes you need to make
• The corrected amounts

You’ll also explain why you’re amending. If you used tax software, it can help complete the form.

Mail It In

You’ll print and mail in Form 1040-X along with any new documents. You can’t e-file amended returns. The IRS has special addresses to mail amended returns to for each tax year.

Amend State Taxes Too

If you amend your federal return, you’ll probably need to amend your state return too. Your tax software or tax preparer can help with state amendments.

Watch Out for Penalties

If you missed some taxable income on your original return, you may owe interest and penalties on the extra tax. File an amended return and pay any additional tax as soon as you can to reduce penalties.

Track Your Amended Return

You can check the status of your amended return online using the IRS “Where’s My Amended Return” tool. It takes up to 3 weeks after mailing it in to show up in the system.

Some Key Facts About Amending

• You typically have 3 years to amend a return.
• Each tax year amended must be done on a separate form.
• There’s no e-filing – you have to mail paper forms.
• You can’t amend returns electronically.

Even if you get an IRS notice about an error, you may be able to resolve it without amending if you respond to the notice. But amending yourself can help avoid higher interest and penalties.

If You Never Filed

What if you should have filed a return but never did? Here’s what to do:

• If the deadline hasn’t passed yet, just file your original return.
• If the deadline passed, you’ll need to mail in the correct return.
• If the IRS sends a notice saying you should have filed, respond explaining why not or file the missing return.

If you don’t respond to an IRS notice about not filing, they could file a return for you. This is called a “substitute for return” – you’ll need to file an audit reconsideration to correct it.

Just Need to Change Your Address?

If you just need to update your address with the IRS, you can do that online or by phone. The IRS website lists all the options for changing your address.