How to Correct the Mistakes in Your Tax Return

A double edged weapon

In fact it's a double edged weapon. If you file an amended return, it will raise eyebrows and IRS may take your return for audit. But at the same time, if you do it correctly, your chances of getting audited are reduced considerably!

Sometimes you make mistakes inadvertently. Your math is fine, your supporting papers are appropriately inserted, your tax strategies are correct, but then some things slip off your mind.

Don't worry. This is not something incurable. If you find a mistake in your tax return, the best way is to correct it quickly. It may be a modified W-2 in favour of IRS or an unclaimed deduction in your favor, just proceed to correct it.

There is a specific form for such corrections - Form 1040X

This form is very easy to fill in. It has three parts - one for what you filled in originally, then one for what changes you wish to make and the last one for final numbers. You can explain the changes at the back of the form.

Take this opportunity to show your sincerity to IRS. If you are claiming a deduction which was originally missed, then attach relevant receipt. If you want to correct any third party document, attach a copy. This will support your changes.

This will minimize your chances of making it in the audit list. Just because you have filed an amended return, it will NOT initiate the audit process. There are some extra...

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