So just because you're entitled to a tax break now doesn't mean you were entitled to it on your pre return. If there are any retroactive tax laws enacted that include new or expanded tax breaks, you'll want to check your previous tax returns to see if you can take advantage of the new law.
For example, a "tax extenders" law was passed in December that will trigger a lot of amended returns. The term "tax extenders" refers to a collection of tax breaks that keep expiring but are then retroactively extended by Congress for another year or two.
The law temporarily revived a number of tax breaks that had expired at the end of , including the mortgage insurance premiums deduction, income exclusion for forgiven mortgage debt, college tuition and fees deduction, and credit for energy-efficient home improvements. If you can claim any of these tax breaks for , go ahead and file an amended return to get a refund.
You'll need to file an amended return if you receive information after filing your original return that significantly changes your taxable income. For example, you might receive an amended W-2 form or a form showing previously unreported income enough to make a difference on your return.
If the new information affects the deductions or credits that you claimed on your original return—for example, by upping your income to a point where the tax break is reduced or no longer available to you—you'll need to file an amended return for that, too.
You won't receive a refund for these types of changes, but you still need to file an amended return to avoid penalties and additional interest. Changes you make on an amended return affecting your income, deductions or tax liability may also affect the amount of or cause you to owe the alternative minimum tax. So be sure to check that, too.
If you're the victim of a hurricane, wildfire or other natural disaster, you might be able to file an amended return to claim a casualty loss deduction for the tax year before the disaster. Alternatively, you can claim the loss in the year of the disaster: Pick whichever year is more favorable to you. Otherwise, this special rule doesn't apply.
If you decide to claim the loss for the year before the disaster, you must file your amended return no later than six months after the due date for filing your original return without extensions for the year in which the loss took place.
So, for example, if the disaster occurred in and you want to claim your loss on your return, you must file an amended return by October 15, If you prepare your own tax returns, it's best to fill out both your federal and state returns before actually submitting either one.
But sometimes that's just not possible. You might be too busy to do them both at once, so you send in your federal return which has to be done first one day and put off your state return for another day. Then, when you're finally working on your state return, you realize that something you did on your federal return is going to cost you more in state taxes than what it saves you in federal taxes.
If that's the case, it might make sense to amend your federal return—and pay a little more in federal taxes—so you can cash in on a larger state tax break.
A week after filing their federal return, Andrew and Becky started working on their state return. They soon realized that 1 their state standard deduction is much lower than the federal standard deduction, and 2 they cannot itemize on their state return unless they itemized on their federal return which is a common restriction.
And while we're talking about state tax returns, remember that a change made to your federal return may very well affect your state tax liability, too. So, if you've already filed your state return, check to see whether filing an amended federal return means you'll have to file an amended state return as well. The Best T. Rowe Price Funds for k Retirement Savers. Skip to header Skip to main content Skip to footer.
Home taxes tax returns. Tax Breaks. If your income isn't too high, contributing to a retirement account could help you lower your tax bill now.
November 11, The IRS released the standard deduction amounts for In addition to saving you money, the standard deduction amount can also tell you if you even…. As the estate tax exemption amount increases, fewer estates are subject to the federal tax. November 10, Although the tax rates didn't change, the tax bracket income ranges for the tax year are adjusted to account for inflation.
Most Popular. Can you be claimed as a qualifying child or relative if you are 24 years old and live with your parents who primarily support you? Get tax answers fro. This link is to make the transition more convenient for you. You should know that we do not endorse or guarantee any products or services you may view on other sites. Tax information center : Filing : Personal tax planning. Simply put, an amended return is usually filed because something was incomplete, incorrect or omitted from the original tax return.
It should be filed if you forgot to claim credits and deductions, or need to correct filing status and income — whether the result is a tax refund or a tax bill. If you are claiming a refund, the deadline for filing an amended return is generally three years after the date filed or the original deadline, or two years after taxes were paid for that year — whichever is later.
Depending on the size of the tax bill, you could reduce or avoid penalties. If you wait for the IRS or state to find the error or omission, the interest and penalties will continue to grow. If you e-filed your original return, give it time to be processed before you amend.
Also, if you are expecting a tax refund, wait to receive it before you submit your amended return. There is a special form: you will use Form X to correct any previously filed
0コメント