Tips about Filing an Amended Tax Return
+ Moving this Year?
+ Health Insurance
Company May Ask for Social Security Number
all make mistakes so don't panic if you made one on your tax return. You can
file an amended return if you need to fix an error.
You can also amend your tax return if you forgot to claim a tax credit or
deduction. Here are ten tips from the IRS if you need to amend your
federal tax return.
When to amend. You should amend your tax
return if you need to correct your filing status, the number of dependents
you claimed, or your total income. You should also amend your return to
claim tax deductions or tax credits that you did not claim when you filed
your original return. The instructions for Form 1040X, Amended U.S.
Individual Income Tax Return, list more reasons to amend a return.
Note: If, as allowed by recent legislation, you plan to amend your tax year
2014 return to retroactively claim the Health Coverage Tax Credit, see
IRS.Gov/HCTC first for more information.
When NOT to amend. In some cases, you
don't need to amend your tax return. The IRS usually corrects math errors
when processing your original return. If you didn't include a required form
or schedule, the IRS will send you a notice via U.S. mail about the missing
Form 1040X. Use Form 1040X to amend a
federal income tax return that you filed before. Make sure you check the box
at the top of the form that shows which year you are amending. Since you
can't e-file an amended return, you'll need to file your Form 1040X on paper
and mail it to the IRS.
Form 1040X has three columns. Column A shows amounts from the original
return. Column B shows the net increase or decrease for the amounts you are
changing. Column C shows the corrected amounts. You should explain what you
are changing and the reasons why on the back of the form.
More than one year. If you file an
amended return for more than one year, use a separate 1040X for each tax
year. Mail them in separate envelopes to the IRS. See "Where to File" in the
instructions for Form 1040X for the address you should use.
Other forms or schedules. If your
changes have to do with other tax forms or schedules, make sure you attach
them to Form 1040X when you file the form. If you don't, this will cause a
delay in processing.
Amending to claim an additional refund.
If you are waiting for a refund from your original tax return, don't file
your amended return until after you receive the refund. You may cash the
refund check from your original return. Amended returns take up to 16 weeks
to process. You will receive any additional refund you are owed.
Amending to pay additional tax. If
you're filing an amended tax return because you owe more tax, you should
file Form 1040X and pay the tax as soon as possible. This will limit
interest and penalty charges.
Corrected Forms 1095-A. If you or anyone
on your return enrolled in qualifying health care coverage through the
Health Insurance Marketplace, you should have received a Form 1095-A, Health
Insurance Marketplace Statement. You may have also received a corrected Form
1095-A. If you filed your tax return based on the original Form 1095-A, you
do not need to file an amended return based on a corrected Form 1095-A. This
is true even if you would owe additional taxes based on the new information.
However, you may choose to file an amended return.
In some cases, the information on the new Form 1095-A may lower the amount
of taxes you owe or increase your refund. You may also want to file an
amended return if:
- You filed and incorrectly claimed a premium tax credit, or
- You filed an income tax return and failed to file Form 8962, Premium Tax
Credit, to reconcile your advance payments of the premium tax credit.
Before amending your return, if you received a letter regarding your premium
tax credit or Form 8962 you should follow the instructions in the letter.
When to file. To claim a refund file
Form 1040X no more than three years from the date you filed your original
tax return. You can also file it no more than two years from the date you
paid the tax, if that date is later than the three-year rule.
Track your return. You can track the
status of your amended tax return three weeks after you file with "Where's
My Amended Return?" This tool is available on IRS.gov or by phone at
You can get Form 1040X on IRS.gov/forms at any time.
Each and every taxpayer has a set of fundamental rights they should be aware
of when dealing with the IRS. These are your Taxpayer Bill of Rights.
Explore your rights and our obligations to protect them on IRS.gov.
month in USA Today I was quoted in 2 articles on tax
topics & if you missed it you can download the articles
9 Commonly Overlooked
Tax Breaks by Jeff Reeves - Special to USA Today (click
here to download)
9 Tax Tips For The Self
Employed by Jeff Reeves - Special to USA Today (click
here to download)
You Receive the Premium Tax Credit, Report this Life Event
If you moved recently, you've probably notified several
organizations – like the U.S. Postal Service and utility
companies – about your new address.
You may have even notified the IRS about your address change.
If you get health insurance coverage through a Health
Insurance Marketplace, you should add
one more important notification to your list: the Marketplace.
If you are receiving advance payments of the premium
tax credit, it is particularly important that you report
changes in circumstances, including moving, to the
Marketplace. There's a simple reason. Reporting your move lets
the Marketplace update the information used to determine your
eligibility for a Marketplace plan, which may affect the
appropriate amount of advance payments of the premium tax
credit that the government sends to your health insurer on
Reporting the changes will help you avoid having too
much or not enough premium assistance paid to reduce your
monthly health insurance premiums. Getting too much premium
assistance means you may owe additional money or get a smaller
refund when you file your taxes. On the other hand, getting
too little could mean missing out on monthly premium
assistance that you deserve.
Changes in circumstances
that you should report to the Marketplace include:
- an increase or decrease in your income, including
lump sum payments like a lump sum payment of Social Security
- marriage or divorce
- the birth or adoption of a child
- starting a job with health insurance
- gaining or losing your eligibility for other health
Many of these changes in circumstances – including
moving out of the area served by your current Marketplace plan
– qualify you for a special enrollment period to change or get
insurance through the Marketplace. In most cases, if you
qualify for the special enrollment period, you will have sixty
days to enroll following the change in circumstances. You can
find information about special enrollment periods at
The Premium Tax Credit Change Estimator can help you
estimate how your premium tax credit will change if you
experience a change in circumstance during the year.
Your Health Insurance Company May Be Asking for Your Social
health insurance company may request that you provide them
with the social security numbers for you, your spouse and your
children covered by your policy.
This is because the Affordable Care Act requires every
provider of minimum essential coverage to report that coverage
by filing an information return with the IRS and furnishing a
statement to covered individuals. The information is used by
the IRS to administer – and individuals to show compliance
with – the health care law.
Health coverage providers will file an information return,
Form 1095-B, Health Coverage, with the IRS and will furnish
statements to you in 2016, to report coverage information from
calendar year 2015.
The law requires coverage providers to list social security
numbers on this form. If you don't provide your SSN and the
SSNs of all covered individuals to the sponsor of the
coverage, the IRS may not be able to match the Form 1095-B
with the individuals to determine that they have complied with
the individual shared responsibility provision.
Your health insurance company may send a letter that
discusses these new rules and requests social security numbers
for all family members covered under your policy. The IRS has
not designated a specific form for your health insurance
company to request this information. The Form 1095-B will
provide information for your income tax return that shows you,
your spouse, and individuals you claim as dependents had
qualifying health coverage for some or all months during the
year. You do not have to attach Form 1095-B to your tax
return. Keep it with your other important tax documents.
Anyone on your return who does not have minimum essential
coverage, and who does not qualify for an exemption, may be
liable for the individual shared responsibility payment.
The information received by the IRS will be used to verify
information on your individual income tax return. If you
refuse to provide this information to your health insurance
company, the IRS cannot verify the
information you provide on your tax return and you may receive
an inquiry from the IRS. You also may receive a
notice from the IRS indicating that you are liable for a
shared responsibility payment.
For more information, see our Questions and Answers about
Reporting Social Security Numbers to Your Health Insurance
Company on IRS.gov/aca.
If you have comments or questions on the information in these
articles, as usual feel free to call our offices.
To read this & my other articles online go to
and click on the Newsletter section.
always you can call me at 714-619-0667 if you have any
questions about investing, retirement or any other tax &
accounting related issues.
Regards, Monica Rebella, CPA/IAR
President, Rebella Accountancy