1040X Line by Line Guide
Don't Send Flowers, Send Form 1040X:
While you can't send flowers to the U.S. Internal Revenue Service as an apology for filing your taxes incorrectly, luckily, the I.R.S. is more forgiving than your significant other after a forgotten anniversary. So forget the flowers, say hello to Form 1040X. Form 1040X is the IRS document used to amend previous tax filing errors on Form 1040. The Form 1040X is 2 sided and reiterates important lines in Form 1040 into summary lines. Think of it as an apology card from Hallmark, except with numbers instead of words. The Form is divided into three sections on page 1, and three parts on page 2. These sections compartmentalize individual financial categories with their respective changes to clearly define how the Form 1040 is to be amended. The form itself is surprisingly easy to use. For example, the first section of the Form 1040X includes identification information such as name, address, and filing status.
The next section of the Form 1040X addresses the most important financial details of Form 1040 and consists of 24 lines. In this section, only totaled amounts from Form 1040, such as adjusted gross income, deduction amount, exemptions and credits are re-entered, along with their respective changes.
Three columns on the right side of page 1, labeled "A", "B", and "C" clarify mistakes made in the Form 1040 under the key summary lines. These columns list the original amount, net change and correct amount, thereby informing the IRS what errors were made and how they were corrected. To illustrate, if tax filer Y made an error in itemizing deductions and overstated a cost, that numerical mistake can be amended on line 2 of Form 1040X.
At the end of page 1 is the statement of accuracy and completeness in so far as the tax filer or preparer knows, and is confirmed via signature and date. This is the tax filers assertion and agreement that the Form has accurately changed previous errors in tax filing that were originally believed to be correct. If filing the amendment jointly with a married partner, both signatures with date are required.
Tax Revelations Don’t Count After the 1040 is Sent:
Sometimes tax realizations don’t come until after the send button is clicked on an e-file application or just as the hand is removed from the mail drop box. Doh! This is what part II of page 2 of IRS Form 1040X is for. Specifically, page 2 of the 1040X consists of three parts: exemptions, explanation of changes and Presidential election campaign contributions (Notice how if you “forgot” to approve of the $3 campaign election contribution you have another chance: “Sorry for my tax blunder Uncle Sam, how about a three dollar apology?).
About 2/3 of the page is devoted to specifying details of the upward or downward change to exemptions. These details include who the exemptions are for, how many exemptions there are, and how much the exemptions account for. The remainder of page 2 of 1040X includes numbered explanations for each change by line. If more spaces is needed for the explanations, the Internal Revenue Service allows additional pages to be attached to the 1040X.
It’s Not Your Fault You Filed Your Own Taxes:
If the errors on the Form 1040 are due to an individual misunderstanding of tax code or regulation, relax!. There is no inquisition, jail sentence or whip lashings for making an honest error on IRS Form 1040, especially when an amendment is filed acknowledging and changing the error. The following tips serve as a useful checklist to review before sending in a Form 1040X to the IRS or your tax preparer.
- Tax returns can be amended for up to three years of the years filing deadline
- The 1040X is used to amend tax returns
- Include correct IRS schedules and Forms in addition to appropriate documentation
- Review the 1040X to make sure it has no errors
- Pay any added taxes due as a result of the change
- Consult the IRS Form 1040X instructions to locate the correct IRS service center
- Don’t forget any resulting tax consequences 1040X has on State tax filings
- In the instance of inconsequential omitted forms, do not file a Form 1040X
Only one original Form 1040 is usually required by the Internal Revenue Service for a given tax year, so there is no need to send a new 1040 along with the 1040X. Additionally, the 1040X can be filed online with some e-file providers. Don’t you wish your significant other was as forgiving as the IRS? For any additional tax concerns, please visit TaxBox.org.
