If you end up needing to pay more, you can simply agree with the notice and pay in response to the notice rather than amending. Keep in mind that if you need to correct mistakes going back multiple years, you'll have to use separate amended returns for each year.
Each year should be done on a separate form and mailed in a separate envelope. If you forgot to report income, such as that from a side hustle , Kazenoff says you'll likely need to file an amended return, and pay.
You should plan to pay the taxes on that unreported income before the April 15 due date. If you don't, you're going to owe interest on the outstanding balance. You may also face a late filing penalty. You can file an extension, but keep in mind that doesn't extend the time to pay, Kazenoff says. You'll need to estimate what you owe and send it into the IRS before your filing deadline.
And it's important that your estimate be as accurate as possible, she adds. This year, the IRS says you need to pay 80 percent of what you owe for the tax year to avoid a penalty. Once you file an amended return, you can track its progress. Three weeks after mailing in your return, you can use the "Where's My Amended Return? Processing can take up to 16 weeks. Don't miss: Here's who is more likely to get a lower refund this tax season, according to experts.
Like this story? Skip Navigation. Jennifer Liu. Things can get unclear for people filing their taxes on paper. Being alerted to or fixing those errors can take longer, delaying the delivery of an eventual refund. Penalties typically fall to people who make an error that causes them to underpay on their taxes, Coombes says.
For example, if a person claims a head of household status incorrectly, they may receive more tax benefits and end up paying less than they owe on their taxes.
A person who fails to pay will face a penalty of 0. People can also face a penalty if they fail to file their taxes at all and owe money to the IRS, Coombes says. If you fail to file but are owed a refund, the penalty would not apply. Errors that call for filing an amended tax return through the X include filing the original return under the wrong status, failing to report some income and claiming the wrong deduction, according to Coombes.
The drawback with filing form X, which involves going over your tax return to figure out what went wrong, is that it cannot be done electronically; rather, it must be mailed in.
For other mistakes, like math errors or missing forms, the IRS will alert the filer or fix the problem for them, Coombes says. The deadline to file an amended return is about three years from the date you filed the original return.
A simple oversight, like putting your deductions on the wrong line, might prompt a deeper investigation. If you have to pay out, and a mistake on the wrong line ends up changing it to a refund, it could be misinterpreted as tax fraud.
Still, it's good practice to double check every figure before committing it to a tax return. Adding instead of subtracting might be a simple blunder to make, but it could drastically change your actual liability.
And you definitely don't want to miscalculate your total income. This is where tax software really helps you out by pointing out inconsistencies.
Returns themselves often have redundancies built in as well, so it reduces the chances of you making the same mistake twice. Auditors know that calculations can get mixed up, and they're trained to know what to look for. You might have been in a rush to grab that from your local post office, but double check before you send it off. A EZ form is an easy thing to mix up, and it could mean a substantial difference in what you're actually claiming. If you have a straightforward return -- no IRA deductions, student loan write-offs, business expenses, etc.
However, if you know you need to account for these things, and your return doesn't ask you about it, you probably picked up the wrong one. Deduction rules vary by type, but they can easily be misunderstood.
If you're an entrepreneur, then you know how valuable deductions can be.
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