How to file 1040x with turbotax
Amending Tax Returns - Presented By TheStreet + TurboTax
Timecodes:
(dramatic upbeat music)
- [Tracy] So you did the right thing.
You got your return in early.
You're all excited, only to realize you forgot something,
or maybe you made a mistake.
It's okay, don't panic.
Thankfully, the IRS knows that stuff happens,
so you can amend your return and file a new one.
There's things you need to know, though,
and thankfully, Lisa Greene-Lewis, CPA and TurboTax Expert,
is here with us right now.
So the first thing is people shouldn't panic.
But to your point, you might not even have to amend
even if you made a mistake.
- Right, yeah, there are cases
where you don't need to amend, so if you,
you know, there's a small amount of income
or something left out, the IRS will make an adjustment
on your return, so say you left out
a form that reports your interest income
and it's a small amount or you transposed a number.
They will make an adjustment and send you
an adjustment letter letting you know what they,
what adjustment they made.
And then, secondly, you wanna make sure
that the IRS has processed your first return
before you try to amend, because, especially now
that you can eFile your amended return,
you may get a rejection on your amended return.
- Yeah, so you wanna give the IRS enough time,
so don't panic.
In theory, you actually have three years
to get this done, even though, if you're gonna amend
and get money back, people are gonna want it fairly quickly,
but yeah, you're gonna have to be patient on this.
The last thing you want is it to get crossed
in the processing, you know, web that they weave.
And you mentioned the eFile.
That's great news, 'cause in the past,
you couldn't file an amended return electronically.
But now you can.
- Yes, you can as of tax year 2019.
That was something that they implemented
and that is a good point you brought up
that you have three years from the filing deadline
to do an amended return so especially if you wanna amend
to claim, you know, a tax credit that you didn't get
and claim a tax refund, you wanna still amend your return
so you can get that refund.
- [Tracy] Right, and don't be afraid to do it.
It's not a red flag.
I think people are always scared.
So the form they need is the 1040-X.
Actually sounds like a scary form.
But the 1040-X is available, right?
They could go download it or fill it in, quite frankly,
using TurboTax, using any online service, quite frankly.
- [Lisa] Right, yes, if you're, if you amend
and you already used TurboTax for your original tax return,
that form is automatically filled out
by the information you enter in
when you go through the amended process.
- [Tracy] And more importantly for this year,
a lotta people are gonna think they're gonna go have to
amend for the, for unemployment.
Because something came out basically after the fact, right,
that $10,200
is not taxable now,
so maybe if you could explain that a little.
- Yes, so under the American Rescue Plan,
there's a provision that allows your first $10,200
of unemployment income to be tax-free.
If you're married filing jointly, that's $20,400,
and so people are wondering what they should do
if they filed before the American Rescue Plan was passed.
The IRS just recently announced
that there's nothing you need to do.
They are going to make adjustments,
and give you that money back.
You know, if you already filed and you paid taxes
on that unemployment income
since this is now tax-free.
- [Tracy] So that's good, so don't feel like
you have to amend, don't panic, take your time.
The IRS is gonna be so overloaded to begin with this year
so give them a minute before you file your amended return.
Lisa Greene-Lewis, CPA, TurboTax Expert,
thank you for all that. - Thank you.
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