US Accountant to Amend Prior Year American Tax Returns
There are several reasons to consider amending your American tax returns from a prior year. For example, if there is a change to your filing status, it may be appropriate to file an amended return. Under other circumstances, you may have overlooked a deduction that can earn you more money on your return. If you or a family member want to amend an American tax return from a previous year, you should consult with an experienced US certified public accountant.
At US Tax Help, we are dedicated to providing you with the tax preparation services that you deserve. U.S. tax law is a complex set of regulations that constantly shifts, but we are here to help guide you through intricate and complicated tax laws. We will work with you to evaluate your unique tax situation and determine the best tax planning strategies for you. To schedule a confidential consultation to discuss your tax situation, contact US Tax Help online.
Common Reasons to Amend Your Tax Return
As mentioned, there are multiple reasons why someone would want to file an amended tax return. Under certain circumstances, an amended return could prevent future tax issues. Alternatively, an amended tax return could be used to increase profits. The following is a list of reasons to amend your American tax return.
Correct an Error
One of the most common reasons to file an amended return is to correct income that may not have been included in your original tax return. For example, 1099s and W2s that are issued by employers, banks, investment partnerships, and other entities may not contain the full information necessary for the taxpayer to file an accurate return. When this happens, and it happens frequently, the issuer will send out a corrected form.
Depending on the corrections in the updated return, you may owe more money in taxes or may be entitled to a larger tax refund. If you end up owing more in taxes and you do not file an amended return, the Internal Revenue Service (IRS) will send you a notice and may fine you substantial penalties.
Change Your Filing Status
Changing your filing status can be advantageous under certain circumstances. For example, if you filed as “single” on a previous tax return, but you were eligible to file as the “head of household” this can mean a difference of thousands of dollars. It is not always possible to change your filing status, which is why it is important to speak with an experienced tax preparer to learn your options.
Alter Your Deductions
It is common to miss a possible deduction if you are not careful when filing your taxes. For example, if you made a charitable contribution that you neglected to mention on your taxes, it may be worth it to amend your tax return. Altering your deductions could also help you avoid an IRS audit or other tax-related issues.
Claiming a Credit
Claiming a credit is typically associated with having a dependent or multiple dependents. If you did not claim a dependent that you could have or you claimed the wrong dependent, you should amend your tax return to ensure you are receiving the maximum refund.
Receiving a Windfall
Sole proprietors, shareholders of S-corp, and members of a partnership can use windfalls from one year and apply them to previous years under certain circumstances. This can give you a larger deduction and give you an increased refund.
Changes to IRS Regulations
IRS regulations are constantly being altered either by the IRS or by court rulings. It is also important to be aware of possibly miscalculating your tax liability.
How to File a Form 1040X
To file an amended tax return, you must file an IRS Form 1040X. This form can only be filed if you filed an original return for that specific tax year. There are important lines of information that you must enter when filing a 1040X. In Column A, you must submit the information provided on your original tax return. Column C requires you to enter the edited version of the information. In Column B, you must enter the “net change,” which is the difference between the numbers entered in Column A and Column C.
Our US Tax Planning Accountant Can Assist You with Your Tax Returns
If you need assistance filing an amended tax return, you should contact an experienced US tax planning accountant today. Ted Kleinman, the founder of US Tax Help, has over 30 years of experience handling U.S. and international tax issues and he will use that experience to represent you. To schedule a confidential consultation to assess your tax returns, contact us online using our short submission form.