An amended return allows correction of errors on a prior year’s tax return and claim of a more beneficial tax status, such as a refund. It can be used to correct misreported income or claim missed tax credits. However, mathematical errors don’t require amendments as the IRS automatically corrects them.
When to File an Amended Return?
An amended return should be filed when there are errors or changes on a previously filed tax return that would affect the taxpayers tax liability. Some common reasons for filing an amended return include:
- Reporting additional income that was not included on the original return
- Claiming additional deductions or tax credits that were not claimed on the original return
- Correcting errors on the original return such as incorrect social security numbers or filing status
- Filing a return for a prior year that was not filed
- Changing from one filing status to another
It’s important to note that an amended return must be filed within three years from the date the original return was filed, or within two years from the date the taxes were paid, whichever is later.