Why File an Amendment?
Even tax professionals make mistakes. When dealing with so many forms and numbers, it is no surprise that thousands of people make mistakes on their income tax return year in and year out. The question is: what can you do about this after the fact? In other words, is there any way that you can fix your mistakes? The short answer is yes. You can file an amended return using form 1040X. This makes it easy to show changes between your original return and the one that is correct.
Before we go any further, you should be aware that you have three years from the original deadline to file form 1040X. For instance, if you made a mistake on your 2006 return, you have until April of 2010 to make the change.
Why would you need to file an amendment?
1. If you missed a credit or deduction.
2. Need to report additional income that you initially forgot.
3. Need to claim additional dependants.
4. Additional withholding from a 1099 or W2.
5. Any deductions that you may have forgotten such as charitable contributions, etc.
If you are unsure of how to file an amendment, make sure that you take your time. After all, you do not want to make a mistake on the form that is meant to correct mistakes! For those who are having a very difficult time understanding how to fill out and file form 1040X, take the time to speak with a tax professional. Since they have experience with this form, they should be able to walk you through the process.
All in all, you should not be afraid to file an amendment. Many people think that the IRS looks down on this, but nothing could be further from the truth. Remember, they want your return to be 100 percent accurate; even if it takes you a couple of tries.
