Amending Tax Returns – How to, and Why?

As every individual and business owner knows, filing federal tax returns in the US can be a complicated matter. People can make mistakes which is why amending tax returns is a viable option when a correction is needed.

The IRS allows you to file an amended tax return not only to correct mistakes that otherwise cost you more money, but they also allow for amending tax returns that take advantage of potential savings. This means that if you discover a deduction or other legal means of lowering your taxable income even after you file your return, you can file an amended return and receive the refund that is due.

But what are amended tax returns? 1040X, 1120X, 1065X?
What limitations are present?
And who benefits from amending tax returns and how is that accomplished?

What Is an Amended Tax Return 1040X, 1120X, 1065X?

Put simply, amending tax returns is a common practice that happens thousands of times each year. It can be considered a correction or addition to the original tax return you filed for the year.

Everyone makes mistakes or overlooks a potential benefit when filing tax returns. Amending tax returns means that you can correct such issues or take advantage of credits or deductions that otherwise would be missed.

Think of an amended tax return as a second chance. A chance for you to spot and make a correction to your original tax return. Or as a way of including new credits or deductions to get back a more favorable return.

But is it worth going back through your old tax returns? For most people, it’s worth a second look.

Call us today at 1-877-78-TAXES [1-877-788-2937]. We are a local Los Angeles, California firm but serve taxpayers nationwide.

Why Amending Tax Returns Happens?

Although amending tax returns can be performed for a variety of reasons, there are still limitations to who can file. For the most part, the IRS allows you to file an amended tax return for the following reasons.

Filing Status: If your filing status changed, but you did not account for that in your original filing, you can make the correction by amending your tax return. For example, if you filed an individual tax return, but you are married and want to file a joint tax return instead, you can make the correction by amending tax return status.

Gross Income: Another common reason for amending tax returns is the accuracy of the gross income. It is one of the common reasons that people file for corrections when they mistakenly put in the wrong income figure. This often happens when reports of income arrive after you have filed your original return.

Dependents: You can also amend the tax return if you increased or decreased the number of dependents originally claimed. Many people forget to declare themselves as a dependent, so this is a common correction. From having a new baby to taking in a foster child or supporting a parent or grandparent, you can file a change in your tax return for this reason.

Credits & Deductions: This is when you either increase or decrease the number of credits and deductions that you originally filed on your tax return. If you catch that you included too many, an amended tax return can make the correction before the IRS acts. Or, if the IRS has notified you of credits or deductions that seem wrong, then you can amend the return 1040X, 1120X, 1065X.

However, the IRS is most likely not going to inform you of credits or deductions that you didn’t include. In such cases, you can file an amended return to take advantage of the situation.


You do not have an unlimited time for filing a new return. This means that amending tax returns must be done within three years of the original due date with one exception. To be clear, you must file an amendment for your tax return within the following time frame.

  • Three Years: From the original due date of the tax return
  • Three Years: From the date you filed if it was after the deadline
  • Two Years: Of paying taxes for the year in which you filed

So, if you filed your 2021 tax return on March 1st, 2022, you have until the posted deadline for filing your 2024 tax returns. That date will normally be in April 2025, but that might change as it did in 2020 due to the COVID pandemic.

The exception is when you have paid taxes for that year. So, in this case a 2021 tax return filed in 2022 that was paid means you only have until the deadline date of 2024 for amending tax returns.

There may be some cases when tax returns that are older than three years might need to be reviewed. A tax professional can help by answering your questions and seeing if an amended tax return is needed.

Why Taxpayers Need Amended Tax Returns 1040X, 1120X, 1065X?

In some cases, amending tax returns may not be necessary. This normally occurs when the potential benefits are outweighed by the cost. Or when the benefits are so small that they may not be worth filing a new return.

Our Mike Habib, EA professional Los Angeles tax firm can help you in this regard. It pays to have knowledgeable, experienced tax professionals inform you of what benefits you may or may not receive by amending your tax returns. Plus, they might spot other issues that were overlooked, so call your trusted tax professional today.

Call us today at 1-877-78-TAXES [1-877-788-2937]. We are a local Los Angeles, California firm but serve taxpayers nationwide.

Who Benefits From Having Their Tax Returns Amended?

Everyone who files taxes may benefit from going over older tax returns. From individuals to business owners, from those who file simple returns to those who have complicated ones, anyone who files may benefit.

Of course, just because you may benefit does not mean that you will. The tax returns must be examined first to see what can be gained.

There are four basic benefits for amending tax returns. While there are certain exceptions, for the most part those who benefit have the following four reasons to gain.

  • Credits
  • Refunds
  • Correcting Reports
  • Avoiding Criminal Charges

Credits and refunds speak for themselves. Spotting a potential credit or deduction that was not taken advantage of in the original return is a solid reason for amending tax returns. The refund for filing a new tax return may be small or large, but you should do it if the gain is worth the effort.

Correcting mistakes on the return benefits those who want to avoid a potential audit. Even if the IRS did not catch the mistake before, they may in the future go back and review older tax returns during the audit process. You can be proactive and make the corrections today, so you do not pay more tomorrow.

Criminal charges are rare but can happen if you are not diligent in following up with the IRS. In such cases, amending tax returns becomes a must. And you should obtain professional representation under such circumstances.

The truth is that everyone benefits from amending tax returns when there are gains to be made or mistakes to correct. It pays to go over your older tax returns to see if you may qualify for a credit or deduction. This is where our tax professional firm can help.

Why Seek Professional Help in Amending Your Tax Return?

If the IRS had informed you of an issue about your tax returns, then getting professional assistance is the best way to correct the situation. Contacting your trusted professional tax return specialist, Mike Habib, will provide you with the following benefits.

Proper Identification & Correction: Are you sure that you have spotted a potential credit or deduction in your tax return that was originally overlooked? You will want to be sure by consulting our professional tax return specialist. We have the knowledge, experience, and access to all the latest tax laws that would apply to your case.

This means that you will know for sure whether your amended return qualifies under the law. Before you file such a return, be sure that the right professionals see it first. Otherwise, you might be making a mistake that may cost you even more than what you originally returned.

Fast Solutions: Time is of the essence when amending tax returns. Even if you have up to three years in most cases to do so when taking advantage of credits or deductions, you’ll want your amended returns to be promptly addressed.

Our professional tax assistance can provide you with the speed and accuracy needed to ensure that the amended returns are filed on time. Plus, we can provide additional services that will help you in better understanding the process which may benefit future tax returns.

Vital Information: If you are under an IRS audit with penalties and perhaps criminal charges that may be filed, you will need professional tax assistance. Such assistance can guide you towards making the best-informed decisions about what steps to take next when amending tax returns.

The right information is what you need whether amending tax returns or filing standard returns every year. Be sure to consult with the right tax professionals so that your tax returns are ready for filing.

Call us today at 1-877-78-TAXES [1-877-788-2937]. We are a local Los Angeles, California firm but serve taxpayers nationwide.

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