A Guide to Amending Tax Returns

What does it mean to amend a tax return?

Amending a tax return is exactly what it sounds like: it’s correcting any tax errors on a previously filed return.

Not every taxpayer needs to consider amending their tax returns, but it might be a good idea for those who:

• Might be due more money from “left-off” benefits
• Owe the IRS money because they did not report all that they should

This can happen when they:

• Forgot to include income (like from crypto or side hustles)
• Claimed the wrong tax filing status (like claiming a Single tax status when really, they are Head of Household)
• Need to make a change in dependents (they have left off someone, claimed someone not theirs, or someone else wrongly claimed or them)
• Missed a tax deduction or credit
• Need to correct a general error (such as missed side hustle deductions or used the wrong mileage rate)
• Can be claimed as a dependent on someone else’s return
• Are impacted by tax law changes on their return (like a new green energy credit or other new late law change item)

It happens more often than you think and for many reasons and can lead to more money for you or you might even owe.

The list of reasons of when and why you should consider voluntarily amending your previously filed tax return can be endless and is unique to each taxpayer. Most of these reasons boil down to either getting a bigger refund or having to correct your return with the IRS and end up paying some taxes. Why do that? To be sure your tax return is correct and to minimize any penalties and interest owed.

There are also times that you might receive a notice from the IRS that will result in you needing to amend your tax return. This often comes from something not matching in their system and records, especially related to income that might have been left off.

How do you amend your tax return?

First, the IRS allows taxpayers to amend their tax returns for any open year. An open year is typically three years after the due date of that tax return year, or two years after taxes are paid in full, whichever is later. So, think of it like this: in 2024, you can amend tax returns for tax years 2021, 2022, and 2023. Do you think you missed claiming that third stimulus check in 2021? Or did you forget to report money you earned while driving for a rideshare company? You should consider amending your tax return! The IRS won’t do it for you, especially to get you more money – because that is up to you. But if you owe, the IRS might do it for, or to, you.

Similarly, the IRS also has that same timeframe of open tax years to look at your tax return and figure out that you made a mistake and can ask questions or audit you.

It’s not too difficult to amend a tax return, and it’s even easier if you work with a Tax Pro to avoid any additional mistakes on the return.

You’ll need to use the current form 1040X, which can be done electronically or on paper. On this form, you’ll need to:

• Enter the amount on the original return
• Enter the new, correct amount
• Show the difference between the two amounts
• Explain each change by line

While it looks simple, it can get more complicated, especially if you have more than one item, or that one item impacts other items in your tax return.

When you amend your federal tax return and send it to the IRS, you’ll also need to include copies of all other schedules or forms that have changes, any new forms created, and any other income-related documents (like W-2s and 1099s) that came after the original tax return was filed. But do not include a new form 1040 with the return. Be sure to write or have “amended” at the top of the changed forms. Make sure any new income-related documents are included, but do not include any that are unchanged and were already submitted the first time you filed your tax return.

Is there a penalty for amending a return?

No, not in most cases. But, if the reason you’re amending your tax return is because you made a mistake that means you underpaid the IRS, you CAN owe the IRS money and could face other penalties and interest. But, in general, there isn’t a fine or penalty from the IRS to file an amended return. And if you work with a tax professional, they’ll likely charge you a nominal fee to file the paperwork.

Common mistakes people make when filing an amended return:

• Guessing or estimating the total income that was originally left off the tax return
• Forgetting to also amend their state return
• Claiming credits and deductions they aren’t actually eligible for but try to claim, anyway.

The best way to avoid making mistakes when amending your tax returns is to work with a Tax Pro who has experience in this area.

Is it a good idea to amend a tax return?

Absolutely, especially if you’re owed more money. That’s your money, and the IRS isn’t going to just send you money you missed because you failed to claim a credit or deduction you were eligible for. Or give you more money because you could have filed with a different filing status.

Frequently asked questions about amending a tax return

Can I amend my tax return if I already filed?
Yes, as long as you wait to amend the return after the IRS originally processed the return. In other words, if you just filed your 2023 tax return and immediately realized you made a mistake, you need to wait until the IRS has reviewed and processed the initially filed return.

What happens after I amend my return?

If you’re owed more money from the IRS after filing an amended return, you’ll receive a refund. We recommend having this money directly deposited into your bank account, rather than having a paper check mailed to you.

How long does it take to get a refund from an amended tax return?

It can take up to four months for the IRS to process an amended return. It’s not a quick process, so just be patient. You can check the status using the IRS Where's My Amended Return? online tool, or call 866-464-2050 three weeks after filing your amended tax return.

Can I amend a tax return from five years ago?

Unfortunately, no. The IRS only allows taxpayers to amend "open" tax years. Which are generally returns from the past three tax years.

Where do I mail amended tax return?

That depends on the state you live in. Confirm that you and your Tax Pro are sending the 1040-X to the correct address by looking on IRS.gov Find an office near you and work with a Jackson Hewitt Tax Pro today to learn more. But it will be mailed to the Department of the Treasury in either Kansas City Missouri, Austin Texas, or Ogden Utah. We recommend electronically filing your amended tax return instead of mailing it.

About the Author

Mark Steber is Senior Vice President and Chief Tax Information Officer for Jackson Hewitt. With over 30 years of experience, he oversees tax service delivery, quality assurance and tax law adherence. Mark is Jackson Hewitt’s national spokesperson and liaison to the Internal Revenue Service and other government authorities. He is a Certified Public Accountant (CPA), holds registrations in Alabama and Georgia, and is an expert on consumer income taxes including electronic tax and tax data protection.

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