With How do I Efile my 1040X TaxAct? To file Form 1040X using TaxAct, sign into your account, open your return, and click Amend Federal Tax Return under the Filing tab. Once you hit the amendment steps, follow the prompts, and revise your return as needed.
And before you finish, don’t forget your state return. A change to your federal income tax return could affect your state income tax return. If you live in a state with income tax, you must amend both returns.
Where to file your amended return
Sadly, the IRS does not permit e-filing amended returns. You must print and mail the return. You can find the mailing address on the IRS website.
You can also track the status of your IRS amended return through the IRS’ Where’s My Amended Return tool.
But wait…. what if I owe money? Will I have to pay a penalty?
If it’s after the tax deadline, and you discover you underpaid your taxes, you may owe a penalty plus interest. Pay the tax due immediately to minimize interest and penalties.
However, if you have a good cause, such as erroneous information sent to you, be sure to attach a statement with your amended return and ask for an abatement of the penalty.
The IRS often grants abatements when taxpayers attempt to correct problems on their own and as soon as possible. In fact, the IRS can be quite reasonable.
Note: Amending your tax return does not increase the risk of being audited.
How you can avoid mistakes in the future
You can avoid most tax return mistakes by organizing your information before filing your taxes. It also helps to not wait until the last minute to start your return. Tax software takes care of the math for you and checks your return for errors, missing information, and potential tax savings.
It is also very important to read your tax return before you file it. Comparing it to last year’s return can help jog your memory about potential deductions and other items you should report.