Amended Tax Returns

(Form 1040X) |
Over 163 million individual income tax returns are filed each year. The vast majority of those
returns are filed correctly. However, on occasion, the information on an already-filed tax i
return is determined to be incorrect.
There are hundreds of reasons why a previously filed return might be incorrect: a math
error, a change of filing status, an additional or corrected informational tax form received, |
the basis or sales price on the sale of a capital asset initially reported incorrectly, a permitted t
itemized deduction omitted, and so on. There might be one error or multiple errors, and the
changes might cause total tax liability to increase or decrease.
If a previously filed tax return is determined to be in error, the taxpayer must file an ;
amended tax return on Form 1040X. On the amended return, the taxpayer provides numerical '
information concerning the tax return item(s) that is (are) being corrected plus a reconciliation
between the original data and the correct data. The form also has a section where the taxpayer
‘ i ) must explain the change.
Let us look at an example:

+ Exhibit A-1 is the Form 1040 originally filed by Kim Watkins for tax year 2023. She had
wage income and interest income, and she took the standard deduction. She originally
received a refund of $398. After she had filed her return, she received a corrected Form
1099-INT from State Savings Bank. The corrected Form 1099-INT showed interest income
in box 1 that was $250 more than originally reported.
As a result of receiving this corrected Form 1099-INT, Kim must file an amended tax
return. The completed Form 1040X amended tax return is shown in Exhibit A-2.
« Column A of the 1040X amended return provides tax information as it was originally filed.
The information in column A comes from the data on the original Form 1040 in Exhibit A-1.
Column B is used to indicate the numerical items that have changed. In this case, line 1,
Adjusted Gross Income, must increase by $250 to properly report the information from the
corrected Form 1099-INT received by Kim. Column C represents the corrected totals. The
explanation for the change is provided in Part III on page 2.
* Note that we are preparing an amended return for tax year 2023. Thus, the amount of tax on
line 6 of Form 1040X is determined using the 2023 tax tables. These tables can be found in
the Form 1040 instructions for tax year 2023, available on the IRS website at [Link].
+ Because Kim’s income increased by $250, she will owe additional tax of $30. That amount
is reflected on line 20. When Kim files her amended Form 1040X, she must include a
check for $30. Kim is in the 12% tax bracket. The additional tax represents the 12% income
tax that is due on the additional $250 of income ($250 X 12% = $30).

‘ Only one item needed to be corrected in our example. If multiple changes are required, the tax-
payer should clearly explain each item and provide a detailed summation and reconciliation.

o ¥l A1
A-2 Appendix A Amended Tax Returns (Form 1040X)

Use the information from our previous example. Assume that Kim received two corrected
1099-INT forms, one from State Savings Bank that increased her interest income by $250 and
another from State Bank and Trust that decreased her interest income by $100. In this case, the
amount on line 1, column B, of Form 1040X would be $150, the net difference. The explana-
tion in Part III on page 2 needs to clearly explain the change. Here is how Part I1I, Explanation
of Changes, might appear in this case:

Taxpayer received two corrected Forms 1099-INT. One was from State Savings Bank. It showed
corrected interest income $250 more than originally reported. The other was from State Bank
and Trust. It showed corrected interest income $100 less than originally reported. The amount of
Adjusted Gross Income on line 1 is increased by $150, determined as follows:

Change from corrected Form 1099-INT from State Savings Bank $ 250
Change from corrected Form 1099-INT from State Bank and Trust (100)
Net change to Adjusted Gross Income $ 150

It is extremely important to note that the amended return must be prepared using the tax rules
in effect for the year of the original return. For example, if we were preparing an amended
return for Kim Watkins for tax year 2022, the standard deduction on line 2 of Form 1040X
would be $12,950 because that was the correct amount for tax year 2022. We would also use
the tax tables or tax rate schedules for 2022.
Generally, an amended return must be filed within three years after the date the original
return was filed or within two years after the date the taxpayer paid the tax due on the original
return, whichever is later.
 Appendix A Amended Tax Returns (Form 1040X) A-3

EXHIBIT A-1

| £1040 iniviaual U incoms Tax Retum | 2028 oo cons IRS Use

.20
Only—Do not write or staple

See separate
in this

instructions.
space.
For the year Jan. 1-Dec. 31, 2023, or other tax year beginning , 2023, ending

Your first name and middle initial Last name Your social security number
Kim Watkins 41,2398 546 7 0
If joint return, spouse's first name and middle initial Last name Spouse’s social security number

Home address (number and street). If you have a P.O. box, see instructions. Apt. no.
123 Main Street
City, town, or post office. If you have a foreign address, also complete spaces below. State ZIP code
Bryan X 77845
Foreign country name Foreign province/state/county Foreign postal code

Filing Status
Check only
one box.

Digital

than four
dependents,
see instructions
| and check
‘ here 71 [
45,491
| Income 12
)
Attach Form(s)
[Link] ©
attach Forms d
W-2G and
1099-R if tax =
was withheld. f adoption benefits from
Employor-pmvuded
If you did not g
Wages from Form 8919, line 6 .
peiatan h Other earned income (see instructions) L
instructions. i Nontaxable combat pay election (see mstmchons) e (e Ifi:l
'z Addlines 1athrough 1h R T S e L | 45,491
Attach Sch. B~ 2a Tax-exemptinterest . . . 2a b Taxableinterest ' . . .. . . 2b 1,173
if required. 3a Qualified dividends . . . | 3a b Ordinary dividends . |
3b
Nl - I
e g 4a |RAdistributions . . . . | 4a b Taxable amount . 4b
Deduction for— | 9@ Pensions and annuities . . | 5a b Taxable amount . s ] B
*Single or 6a Social security benefits . . 6a b lTaxableamount. . . . . . 6b
{ m“fi"f‘g ¢ If you elect to use the lump-sum election method, check here (see instructions) . . . . . i -
's:r}gfi“ 7 Capital gain o (loss). Attach Schedule D if required. If not required, check here il 7
lmyor |& Additional income from Schedule 1, fine 10 .. . . et
g ouse,| 9 Add lines 12, 2b, 3b, 4b, 5b, 6b, 7, msTmsisyourbmimom el g 46,664
mg 10 Adjustments to income from Schedule 1,line26 . . . . Gl e 10
i e 46,664
household, | 11 SubtmctlmveromkneQThissyouud}uwgmmme
LS00 e 12 Standard deduction or itemized deductions (fom Schedule A) . . . . . . . . . . |12 13,850
grgntz;t;mder 13 QmfifiedmmmmmdodmonfimFommmFom%A. G 13
S e G 14 13,850
Deduction, 14 Add lines 12and 13 . . :
L?‘i‘__fi‘;'fi;w Subtract line 14 from line 11. xfzeroorl&s_s -O-Thlsmyourhxablomoomo T 32,814
mmmmmwmmmmmm Cat. No. 113208 Form 1040 (2023)

Source: U.S. Department of the Treasury, Internal Revenue Service, Form 1040. Washington, DC: 2023.
A-4 Appendix A Amended Tax Returns (Form 1040X)

EXHIBIT A1 (concluded)

qualifyingchild,
attach Sch. EIC.

4117
Refund 398

Direct deposit?
See instructions.

Amount
You Owe

Third Party |
Designee

Sign
Here ~ j
Your signature you an Identity
Protection PIN, enter it here
Joint return? (seeinst)
See instructions. Spouse’s signature. If a joint retur, both must sign. | Date Spouse's occupation Ifthe IRS sent your spouse an
Keep a copy for Identity Protection PIN, enter it here
your records.
(see inst.)
Phone no. Email address
¢ Preparer’s name Preparer’s signature Date PTIN Check if:
Paid
[] self-empioyed
Preparer e |
Use Only —Lrsname Phone no.
Firm’s address Firm's EIN !
Go to [Link]/Form1040 for instructions and the latest infor i A
 Appendix A Amended Tax Returns (Form 1040X)

EXHIBIT A-2

3 1 o 40 x Department of the Treasury—Internal Revenue Service

S
o
- .
Amended U.S. Individual Income Tax Return OMB No. 1545-0074
Go to [Link]/Form1040X for instructions and the latest information.
(Rev. February 2024)
This return is for calendar year (enter year) 2023 or fiscal year (enter month and year ended)
Your social security number
Your first name and middle initial Last name
Watkins 4.4 213 4|58 70
Kim Spouse’s social security number
Last name
If joint return, spouse’s first name and middle initial
|i |i

Home address (number and street). If you have a P.O. box, see instructions. Apt. no. Presidential Election Campaign

125 djain
City,
et
town, or post office. If you have a foreign address, also complete spaces below. | State ZIP code
1 g ity kY
want $3 to go to this fund, but now
reviculy
Bryan X 77845 do. Checking a box below will not
Foreign province/state/county Foreign postal code | change your tax or refund.
Foreign country name
[]You [] Spouse
box even you are not changing your filing status. Caution: In general, you can’t
Amended return filing status. You must check one if
change your filing status from married filing jointly to married filing separately after the return due date.
(HOH) [] Qualifying surviving spouse (QSS)
[7] Single [] Married filing jointly [] Married filing separately (MFS) [] Head of household
you checked the HOH or QSS box,
If you checked the MFS box, enter the name of your spouse unless you are amending a Form 1040-NR. If
enter the child’s name if the qualifying person is a child but not your dependent:
nt| B. Ne't ; NPT
Enter on lines 1 through 23, columns A through C, the amounts for the return A Origi";
year entered above. : pr;m'y a?i; b S a";?‘(‘gec"re'ar';';’f“ s
(see instructions) | explain in Part Il
Use Part Il on page 2 to explain any changes.
Income and Deductions
1Adjusted gross income. If a net operatlng loss (NOL) carryback is
included, check here . Al e U R | 46,664 250 46,914
2 13,850 13,850
2 ltemized deductions or standard deductnon
3 32,814 250 33,064
3 Subtract line 2 from line 1
4a Reserved for future use ; 4a
b Qualified business income deductlon i 4b
5 Taxable income. Subtract line 4b from line 3. If the result for column C
250 33,064
is zero or less, enter -0-incoumnC . . . . . . . . . . . . 5 32,814
Tax Liability
6 Tax. Enter method(s) used to figure tax (see instructions):
6 3,719 30 3,749
From Tax Tables
7 Nonrefundable credits. If a general business credit carryback is included,
check here S S 7
8 3,719 30 3,749
8 Subtract line 7 from Ilne 6 If the result is zero or Iess, enter-0- . . .
doRItUPaHISe’ i o i T R e T e _T___
g i Recamed
10 Othertaxes . . R e a8 et 1 ]
11 3,719 30, 3,749
11 Total tax. Add lines 8 and 10
Payments
12 Federal income tax withheld and excess social security and tier 1 RRTA
12 4,117 4117
tax withheld. (If changing, see instructions.) . . .
Estimated tax payments, including amount applied from prlor year s return 13
13
14 Earned income credit (EIC) . . . . 14
15 Refundable credits from: []Schedule 881 2 Fonn(s) |:] 2439 D 41 36
18863 [8885 [18962or [Jother (specify): 15
16 Total amount paid with request for extension of time to file, tax paid with original return, and additional
tax paid after return was filed . . . L B R R O S SR 16
e e e 17 4117
17 Total payments. Add lines 12 through 15 column C and Ime 16 S e
Refund or Amount You Owe 398
. 18
18 Overpayment, if any, as shown on original return or as previously adjusted by theIRS . . . .
. . . . . . . . 19 3,719
19 Subtract line 18 from line 17. (If less than zero, see instructions.) . . . .
20 30
20 Amount you owe. If line 11, column C, is more than line 19, enter the difference . . .
retum 21
21 Ifline 11, column C, is less than line 19, enter the difference. This is the amount overpaid on thlS
e AP 22
22 Amount of line 21 you want refunded toyou . . .
23 Amount of line 21 you want applied to your (enter year) estimated tax I 23 |
Complete and sign this form on page 2.
11360L Form 1040-X (Rev. 2-2024)
For Paperwork Reduction Act Notice, see separate instructions. Cat. No.

Internal Revenue Service, Form 1040X. Washington, DC: 2024.

Source: U.S. Department of the Treasury,
A-6 Appendix A Amended Tax Returns (Form 1040X)

EXHIBIT A-2 (concluded)

|

Form 1040-X (Rev. 2-2024)

Page 2 l
AN Dependents
Complete this part to change any information relating to your dependents.
This would include a change in the number of dependents. Correct
[Link]
amount of increase
Enter the information for the return year entered at the top of page 1.
Reserved for future use e el
Your dependent children who lived with you
Reserved for future use
Other dependents .
Reserved for future use
Reserved for future use o e st b R SRR
EBBIJH/N
List ALL dependents (children and others) claimed on this amended return.
Dependents (see instructions): (d) Check the box if qualifies for
(b) Social ity ) Relationshi (see instructions):
If more cial secur (c) Relationship ; | Gradit for oth
(a) First name Last name number to you Child tax credit depen(ge?\ tser
than four
dependents,
see
instructions
and check
here []
I (|
I Explanation of Changes. In the space provided below, tell us why you are filing Form T040°X.
Attach any supporting documents and new or changed forms and schedules.

Taxpayer received a corrected form 1099-INT from State Savings Bank. The interest income shown
in box 1 of the corrected Form 1099-
INT was $250 greater than originally reported to the taxpayer. The $250 increase is reported on page 1 above, on line 1, Box B.

Remember to keep a copy of this form for your records.

Under penalties of perjury, | declare that | have filed an original return, and that | have examined this amended return, including
and statements, and to the best of my knowledge and belief, this amended return is true, correct, and complete. Declaration of accompanying schedules
preparer (other than
taxpayer) is based on all information about which the preparer has any knowledge.
Sign Your signature Date Your occupation Ifthe IRS sent you an Identity
Protection PIN, enter it here
Here eeinst) [ T T [ [ [ |
Spouse’s signature. If a joint return, both must sign. Date Spouse’s occupation If the IRS sent your spouse an

Identity Protection PIN, enter it here

(see inst.)
Phone no. Email address
o Preparer's name Preparer’s signature
Paid Date PTIN Check if:

Preparer — D Self-employed
Use Onl Firm's name Phone no.
y Firm’'s address Firm'’s EIN
For forms and publications, visit [Link]/Forms.
Form 1040-X (Rev. 2-2024)