1. You don’t need to file an amended return if you made a simple mathematical error. The IRS tends to fix this and sends out a letter notifying you of these changes. If you are missing a paper, the IRS usually sends out a request for the missing information, so you won’t need to file the Form 1040X.

2. You cannot e-file an amended tax form. Regardless if you’re amending a 1040, 1040A, 1040NR, 1040EZ or 1040NR-EZ, you need to file your form 1040X through a paper submission that needs to be mailed into the IRS.

3. If you have to file multiple amended tax returns, file and send each one separately. Never combine your amended tax returns for multiple years because the IRS will send it back and request you fill it out separately for their records.

4. If you’re changing the tax forms or adding in more forms and documents, make sure to attach them to the Form 1040X to help expedite your amended returns.

5. If you are expecting more money, wait until your original tax has been refunded to you before filing the amended tax file. You can cash in the original amount on the check and the IRS will send out the remaining balance after receiving your Form 1040X.

Expect processing times to take around 8 to 12 weeks to receive your refund for your amended tax form.

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2 Years

You can discard your tax returns two years after a tax liability is paid. You can also toss your tax records after two years if you received a refund. Businesses should keep their records, at least in the form of a copy of a filed return.

3 Years

If you have filed your tax return and all of the liabilities or monies owed to you are taken care of, you can discard the return after three years. This only applies to individuals. Businesses are advised to keep records for the entirety of the business.

7 Years

If you have filed any type of claim that shows a loss, such as a capital loss on an investment, you should keep your records for 7 years. This is also the case if you have losses from worthless securities. Bad debt deductions, when documented, also require that you keep your records for 7 years.

Final Thoughts

It is a good idea for businesses to keep record of all of their taxes from the date of origin. Delayed tax issues and scandals can come about, meaning that a look further into your tax history may be required. If you do not file a paper return, maintain access to your electronically filed returns and print physical copies to keep on file.

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Form 1040X

Form 1040X is two pages long. It cannot be filed electronically. Use pencil first, and when you are sure that your figures are correct, go over the return in pen. Make sure that you have the right address for the IRS branch that the form needs to be mailed to and send it with delivery confirmation.

Be Prepared to Pay Back Interest

Almost every amended tax return is going to be subject to some kind of back interest. Even amended returns in a current tax filing year can be subjected to interest payments. Set aside enough to be prepared for the interest, or make arrangements to pay the balance within a specific amount of time.

Amend the Right Return

It is a common mistake to amend the wrong year’s return. Make sure that you are amending the right year as you file for earnings of the previous year. If a document shows 2012 earnings, you will amend your 2013 return.

Conclusion

As with any tax return, when you are re-filing an old return, it is important to double and triple check your numbers. It is also important to know that you may be subjected to an audit simply for the amendment, especially if it is one of a substantial amount.

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W-2s

Most people who work will receive either a W-2 or a 1099 form. A W-2 form is used for most workers who are considered employees. If you are a W-2 worker, chances are you were having taxes taken out of your check while you were working. With one form of income and a W-2, you can fill out a 1040EZ form to complete your taxes.

1099s

If you are a 1099 worker, or an independent contractor, you will be considered self-employed. You will need to declare all of your income from each 1099 form, along with your business expenses and losses. Business loses can be money that you were not paid; business expenses include travel and the materials required to perform your job. If you work from home, you may also deduct your home office space on taxes.  You can choose to itemize your deductions or select the standard deduction. Be aware that self-employed persons are charged a much higher tax rate than employees, so you need to keep track of your taxes and make estimated tax payments throughout the year to avoid being penalized.

Conclusion

Taxes for the average person will be rather straightforward. If you find yourself with too much information – i.e. investment accounts, real estate, and other forms – you may want to obtain the services an accountant.

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