How to File an Amended Tax Return

What Is an Amended Tax Return?

An amended tax return corrects errors in a tax return you've already filed. If you accidentally chose the wrong filing status or claimed a deduction you weren't eligible to claim, an amended return sets the record straight with the IRS.

The information submitted in your amended return replaces the information in your original return. If you overpaid when you originally filed, you'll receive a refund when your amended return is filed and processed. Conversely, if your amended return shows you owe additional tax, you'll need to pay it. The IRS will apply any penalties or interest that may have accrued.

Should I File an Amended Tax Return?

You should file an amended return if you made a significant error, omission or oversight in your original tax return. The IRS recommends filing an amended return to make any of the following changes:

• Adjusting the filing status on your tax return
• Claiming a different income amount
• Correcting deductions you claimed (or failed to claim)
• Correcting tax credits you claimed (or failed to claim)
• Changing the status of your dependents
• Changing the amount of your tax liability

When Can I Skip an Amended Return?

Some tax mistakes are caught and corrected by the IRS when it reviews your return. If the IRS contacts you about a mathematical error, for example, you should respond promptly. With simple errors like this, you don't need to file an amended return.

The IRS will contact you by mail if you need to submit missing forms or schedules. If the IRS accepts your return as is, without additional forms, you don't need to send an amended return.

How Do You File an Amended Tax Return?

Before filing an amended return, you may want to check the status of your original return and refund. The IRS recommends waiting to file an amended return until your original return is processed and your refund (if applicable) has been issued. You can claim any additional refund amount on your amended return.

Here's how to file an amended tax return.

1. Collect All Supporting Documents

Start by gathering all the supporting documents you need. These include:

• Your original tax return
• All forms, schedules and worksheets you submitted with your original return
• A new Form 1040, 1040-SR or 1040-NR for the amended return (if applicable)
• New schedules and worksheets to support your amended claims
• Any IRS notices you've received related to your return
• Instructions for the return you're amending: Prior-year instructions are available at IRS.gov/Forms

2. Download and Complete the 1040-X Form

Download IRS Form 1040-X. To amend multiple years, you'll need a separate 1040-X for each tax year. Instructions for form 1040-X tell you exactly how to complete your forms and where to send them, so read through them carefully.

If you're amending a return for the current tax year or one of two prior years, you can use tax preparation software to complete Form 1040-X and e-file your amended return.

3. Review Your Amended Return and Submit Forms

If you're using tax software, you can choose to e-file your return and have any refund you're due directly deposited to your bank account.

If you're using paper forms, don't forget to sign your return. Attach copies of any supporting documents to your return in the order shown in the IRS instructions to avoid your amendment being sent back to you for additional paperwork. If you owe additional tax, you can submit your payment electronically to the IRS website or include (but don't attach) a paper check with your amended return.

Learn more: How to Keep Your Tax Refund Safe From Fraudsters

4. Check Your Amended Return Status

About three weeks after submitting your return, you can start tracking your amended return online. The IRS Where's My Amended Return tool shows return status for the current tax year and up to three prior years. Expect processing to take eight to 12 weeks, and up to 16 weeks if the IRS is busy.

You have three years after the original date of filing, or two years following the date you paid your taxes, whichever is later, to file an amended return.

Do Taxes Impact My Credit Report?

Unpaid taxes won't damage your credit on their own. Paid and unpaid tax liens no longer appear on your credit report at all three credit reporting agencies (Experian, TransUnion and Equifax), which means your tax bill doesn't directly affect your credit scores.

That said, owing money to the IRS can indirectly affect your credit if it causes you to incur additional debt or fall behind on your debt payments. Even one 30-day late payment can lower your credit score and may stay on your credit report for up to seven years. To maintain your good credit, make sure your tax bill doesn't wreak havoc with your overall finances.

Tip: Paying your tax bill on time helps you avoid IRS penalties and interest. Knowing what to expect if you can't pay your tax bill is critical when you need to make a plan.

How to Use Your Tax Refund to Impact Your Credit Score

Though your tax bill doesn't directly affect your credit score, getting a tax refund can help you take action to build and maintain good credit. Here are three ways to put your tax refund to good use:

• Pay bills. Payment history affects your credit score more than any other credit scoring factor. Using your refund to make sure credit card and loan payments are on time and up to date is a great way to ensure your credit stays on track.
• Pay off credit card debt. Reducing credit card debt helps you lower your credit utilization ratio, another key factor used to determine your credit score. Generally speaking, low credit card balances are better for credit scores.
• Build up your emergency fund. Emergency savings are your hedge against unexpected expenses, including surprise tax bills. By keeping more money in savings, you may be less likely to rely on credit cards when you're in a financial pinch.

Frequently Asked Questions

The Bottom Line

One final word of advice: If you amend your federal tax return, the changes you make may affect your state taxes as well. Check with your state taxing authority to see whether you need to file an amended state tax return.

And if putting your taxes in order is part of a larger effort to get your finances on track, remember that you can always check your credit scores and Experian credit report on Experian for free.