How to Amend a Tax Return (Form 1040X)
The amend process is used to apply corrections or provide additional income, credits, deductions, etc; to a Tax Return already acknowledged by the IRS. In many cases, mathematical errors are caught and corrected by IRS so the partner should determine if an amendment is needed based on the clients situation.
Steps required to prepare an amended return:
1. Print original federal and state returns before applying corrections/additions. It is highly recommended to keep a copy of the original 1040 Form for your records.
2. Click Add Form. In the "Enter Schedule/Form Number" box, enter 1040X. Double-click the 1040x from the menu to add the form to the Tax return.
Important Note: State amended forms should be added at this time also, where required.
3. Return to the Tax return and make corrections/additions (adding forms, etc.), as needed. Adjustments will calculate on the 1040x based on entries applied after adding this form.
4. Once all necessary adjustments are completed, fill out the "Explanation of Changes" on Part III of Form 1040X.
5. Print Form 1040X and any other tax forms or schedules that have changed to show how the changes were calculated.
a. Select Next through any verify errors not related to 1040X.
6. Sign the 1040X
7. For steps on how to e-file the 1040X, follow KB 804
Important Note: If submitting a Form 1040X in response to a notice received by the IRS, please follow the instructions indicated in the letter.
The following IRS article advises where to mail your 1040x.
Amending a tax return that was previously amended
1. Open the appropriate tax return and print a copy of the previous amendment for your records.
2. On the 1040X form, use the Amend button. Note the Amendment # you are filing. (MAX 3) Using this button will move Column C into Column A before making changes on the federal return.
3. Make corrections/additions as necessary.
4. Queue and Transmit when ready to send.
Helpful IRS Links:
Form 1040X
1040X IRS PDF Instructions