Troubleshooting Taxes: How to File Extensions and Amended Returns

Troubleshooting Taxes: How to File Extensions and Amended Returns

by | Apr 6, 2022 | Articles, blog, For Individuals, Latest News, Newsletter Article, Personal

2 minute read

Tax issues can be stressful. No matter the circumstances—a family or health emergency, an unexpected work trip, an unorganized filing method—sometimes you just need more time to file your taxes. And sometimes, even if you managed to file your taxes on time, you realize you’ve made a mistake and need to file an amended return. Read on to learn how to deal with both of these common tax hurdles.

What Does a Tax Extension Cover?

With an extension, you have until Oct. 17, 2022 to file a tax return. Keep in mind that an extension does not give you more time to pay if you owe the IRS—it just gives you more time to file your return. If you do owe money, you will need to make a payment by the filing deadline in order to avoid penalties and interest. The tax filing deadline for 2022 is April 18. If you are unable to pay the full balance due, you can apply for a monthly installment agreement with the IRS online or by completing Form 9465. Any interest and penalties owed on the outstanding balance are reduced when you have an approved payment plan with the IRS.

How to File a Tax Extension

File a tax extension by completing Form 4868 via the IRS e-file. You can also print the form, fill it out, and send it via snail mail (just get proof that you mailed it). Whichever method you choose, the process is free. Be sure to request an extension on or before the April 18 deadline to avoid a late-filing penalty from the IRS. Of course, if you fail to file by the Oct. 17 deadline, the penalties could get even worse.

Fix Mistakes with an Amended Tax Return

Mistakes on federal tax returns—like forgetting to include a tax deduction or tax credit, or realizing you miscalculated income—aren’t uncommon. If you realize that you made a mistake on your initial return, you’ll need to correct it with the IRS using Form 1040-X, Amended U.S. Individual Income Tax Return. Some important points to remember:

  • If you’re amending more than one year of returns, the IRS requires a separate Form 1040-X for each year.
  • You will need a copy of the original return you are fixing or updating, any notices you received from the IRS regarding issues with your original return, and any supporting documentation you need that pertain to the changes you’re making (i.e., a 1099 or W-2).
  • If you’re filing Form 1040-X to get money returned, you typically need to do so within three years of filing your original return or within two years of paying the tax, whichever is later.

How to File an Amended Return

You can complete Form 1040-X online if you’re amending your tax return from 2019 or 2020 and you originally filed your taxes online. Otherwise, you’ll need to fill out a paper copy and mail it to the IRS. You can access Form 1040-X as well as instructions on the IRS website. The online form lets you enter your information and download it for submission to the IRS. You can check the status of amended returns three weeks after it’s filed by going to the Where’s My Amended Return? page on the IRS website.

About the Author

Rob is a CPA and has been in public accounting since 1993 after graduating from Ball State University with a Bachelor of Science degree in accounting. Rob became co-owner of the firm in 2003. Rob provides services to many types of industries; including, manufacturing, trucking, construction, service, and retail.

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