Nobody likes to make mistakes, especially when it comes to taxes. But accidents happen. If you didn’t get your return right the first time, you can fix it using Form 1040-x, Amended U.S. Individual Income Tax Return. You must file an amended return within three years of your original filing deadline to claim a refund. If you need to change a return you’ve already filed, ezTaxReturn can help you with your current-year amended return. Here are some mistakes you can fix.
Mistake #1: You received another W-2 or 1099 after you filed
Once the tax season begins, many people rush to file and get their refund. If you’re going to file early, you should make sure you have all your income statements. Employers are required to send your W-2 or 1099 by January 31st. If you receive an additional or a corrected W-2 after you’ve filed, you’ll need to amend your return to reflect the new information. As a result, you may owe additional taxes. Pay your debt as soon as possible to minimize interest and penalties.
Mistake #2: You missed a valuable credit or deduction
If you’re eligible for a credit or deduction and don’t claim it, you’re letting money slip through your fingers. For example, the Earned Income Tax Credit (EITC) is worth up to $6,660 for workers who earn a low to moderate income. Unfortunately, one in five eligible workers fail to take advantage of the credit. ezTaxReturn can help you claim any tax break you rightfully deserve. It’s the fastest and easiest way to get the biggest possible refund.
Mistake #3: You used the wrong filing status
Choosing the right filing status is important because it affects your standard deduction, the credits you’re eligible to receive and the amount of taxes you’ll owe. Let’s say you were single most of the year but got married on December 31st. Don’t assume that you need to file as single. As far as the IRS is concerned, you’re considered married for the entire year. So, go ahead and file a joint return with your new spouse. Keep in mind, there are also situations where you may qualify for more than one filing status. In that case, choose the status that will save you the most money.
You do NOT need to amend your return to claim the new unemployment tax break
Usually, unemployment compensation is considered fully taxable income. However, the new American Rescue Plan allows you to exclude up to $10,200 of benefits. To qualify, your adjusted gross income must be less than $150,000. This mid-season change has led to a lot of confusion, especially for those who already filed and paid taxes on their benefits. The good news is you do not need to amend your return to claim the exclusion. The IRS plans to automatically issue refunds to those affected by the changes.