Kiplinger Personal Finance: When Retirees Need to Amend a Tax Return | Economic news
You filed your tax return months ago, but then sometimes you glance at a copy and notice an error. What should you do
“There is no reason to panic,” said Ebony J. Howard, chartered accountant and financial examiner for RetireGuide.com, “as the IRS allows corrections to previously submitted tax returns.”
In many cases, repairing an old tax return requires filing an amended return. This is fairly easy to do, although there are time limits and special forms – usually Form 1040-X – that you will need to use.
Some errors do not need an amended declaration. Instead, the IRS could correct your return automatically or ask you to do something else, a request that will come in writing.
If you missed a deduction or tax credit to which you were entitled, you must file an amended return to correct the omission.
For example, suppose you itemized the deductions on your original return but did not claim the medical expense deduction because you thought you did not meet the threshold of 7.5% of adjusted gross income. Later, you realize that you do this through your health insurance premiums, which are considered medical expenses.
“In that case,” Howard says, “it would be wise to complete a Form 1040-X, which would increase the total itemized deduction amount,” resulting in a refund.