How to Fix Your Previous Years’ Taxes
Mistakes made on taxes due to the following. If you have a second side-job that doesn’t quite fit into any of the available categories. Investment complications that took extra time to figure out. Questions about health insurance not answered before the April deadline. Errors can happen. While the IRS will likely let you know if you didn’t pay enough. It’s less likely that they’ll look into if you have overpaid or didn’t get a deduction you were eligible for. If you find out over the course of the next couple of years that you’ve overpaid, you can get that money back.
How can you correct previous tax mistakes?
The Internal Revenue Service allows for tax amendments for up to two or three years following either the filing or the payment, respectively. This amendment is done using Form 1040X it is usually used for overlooked credits and deductions. Most of this form just asks for a summation of your identifying information and the totals in the previous filing, the latter half of the form asks for a breakdown of the expected credits and deductions, as well as an explanation of any changes. If you have any backup documentation, such as a tuition bill or deed paperwork, be sure to include copies.
Mail this form do not send electronically. Have a tax professional look over the document for any errors or discrepancies, make a copy of the complete document(s), and send it by certified mail so you can keep track of its progress. There will be a bit of a delay due to the paper requirement. This amendment should be processed in less than twelve weeks.