Thursday, April 21

Use 1040X to fix your just filed-tax returns


You were in a hurry to file your taxes and you just got them filled out and ran to the post office to beat that line and after you send them you go home realizing you forgot a piece of important income information and keyed in a wrong income ..... now the question is "what do i do now?". File a 1040x the right way, and you 'll avoid both penalties and,
potentially, an audit.

if you miss something, you can file a 1040X to fix it with an honest "Oops" statement to the IRS. Fox Business explains when it's necessary:


  •     If it's a simple addition or subtraction mistake, there's no need to amend the return. The IRS says its computers will detect the error, notify you and adjust your return automatically.

  •     But if it's something bigger — you overlooked a Form 1099 for $1,500 you got from a freelance house-painting job — and you catch and correct it first, it could save you from paying even more to the IRS.

  •     The IRS may not penalize you for this honest mistake, but it sure will collect some interest on the proper amount you didn't pay on time in the first place. The sooner you correct the error, the less interest you'll pay.

Made a Mistake? Form 1040X To the Rescue HERE.

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