5 Reasons To Amend A Tax Return
Posted on: 28 April 2020
When you try to handle your own tax affairs and filing, it's easy to make mistakes because you're not an accountant or tax professional. If you think that you might have made a big mistake on your previous year's taxes, it's a good idea to consider making an amendment. You can amend a tax return within 3 years of the original filing date. It's best to hire a certified public accountant to help guide you through the process. Here are some reasons to amend a tax return.
You Forgot to Report 1099-MISC or W-2 Income
If you realize that you have another W-2 or 1099-MISC to add to your return, you'll want to amend your previous return. You want to make sure that you report all of your income and if you choose to ignore the need to amend, it could create a big problem for you later on, if you were to get audited.
You Didn't Take Advantage of a Deduction or Credit
You want to take advantage of as many deductions and credits as possible. This can help you trim your tax bill and keep more money in your pocket. If you've realized that you missed out on a big credit or deduction, it can be worthwhile to make an amendment. Your accountant can help you understand how much money this might save you.
You Received a Corrected W-2
Sometimes mistakes happen that are out of your control. If your employer made a mistake on your original W-2 form, and you have received a corrected document, you'll want to plan to amend.
IRS Rule Changes
Tax laws and rules are complex and ever-changing. If the IRS has since made a rule change that impacts your tax situation, you'll want to talk to an accountant about amending your return.
You Incorrectly Claimed Your Child
If you and your ex both claimed your child on a tax return, that will be a problem. A child can only be claimed as a dependent on one return. You'll need to talk to your ex and work out a deal to see who will need to file an amendment.
These are just some of the reasons why you might need to amend a tax return. If you think that you might have made mistakes, it's worth talking to an accountant about it. They can help you through the amendment process and can help to make sure that you make smart tax and tax return decisions from here on out. Contact a certified public accountant firm if you have questions.
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