Amended Return

DEFINITION of 'Amended Return'

A return filed in order to make corrections to a tax return from a previous year. An amended return can be used to correct errors and claim a more advantageous tax filing. For example, one might choose to file an amended return in instances of misreported earnings, tax credits or dependents. Mathematical errors, however, would not require amendments, as the IRS would automatically correct for such errors.

BREAKING DOWN 'Amended Return'

The applicable tax form required to file an amended return is Form 1040X, which can be found on the IRS website. There is, however, a three-year statute of limitations on the filing of amended returns for the purpose of increasing a tax refund. An amended return filed to account for a return that resulted in underpaid taxes does not fall under any such statute.

RELATED TERMS
  1. Amendment

    1. A change to one of the terms of a contract. Any type of contract ...
  2. Form 1040X

    A form used by taxpayers who have to amend their tax returns ...
  3. Sixteenth Amendment

    The amendment within the Constitution that gives Congress the ...
  4. IRS Publication 501

    A document published by the Internal Revenue Service that covers ...
  5. SEC Form AW

    A filing with the Securities and Exchange Commission (SEC) that ...
  6. IRS Publication 17

    A document published by the Internal Revenue Service that outlines ...
Related Articles
  1. Taxes

    Made A Mistake On Your Tax Return? Don't Panic

    You can always file an amended return. But the sooner you do it, the better.
  2. Savings

    Explaining Tax Returns

    A tax return is the form or forms used to file income taxes with the IRS.
  3. Taxes

    How To File A Canadian Tax Return

    The process for filing a Canadian tax return is easy and streamlined. Here is the information you need to know before filing.
  4. Taxes

    3 Common Tax Questions Answered

    We clarify some rules that often puzzle taxpayers.
  5. Taxes

    Missed the Tax Return Deadline? Here's What to Do

    Most important: Do it now.
  6. Taxes

    6 Sources For Free Tax Help

    From community-based services to free software, there are many free resources to help with your taxes.
  7. Taxes

    Next Season, File Taxes On Your Own

    Master these fundamentals and you'll be doing your own taxes with minimal stress.
  8. Taxes

    Late with Your Taxes? Grab IRS Form 4868

    Fill out this form to get a few more months to file your tax return. But remember, April 15 is still the payment due date if you owe taxes.
  9. Taxes

    Should Married Taxpayers File Together?

    Married couples that file a joint tax return can enjoy several credits and benefits that aren’t available when filing separately.
  10. Taxes

    Always Keep These Tax Documents

    It's tempting to ditch them. But make a practice of this very specific group of tax papers. It can save headaches and pay off in tax savings.
RELATED FAQS
  1. I already filed my income tax return, but my employer sent me another W2 form(1099 ...

  2. I deducted my IRA contribution on my tax return but failed to transfer the funds. ...

    If an IRA contribution was deducted on a tax return, but the contribution was never made to the IRA by the taxpayer's tax ... Read Answer >>
  3. Do I need to file an income tax return every year?

    Understand if a person needs to file a tax return every year. Learn the benefits of filing a yearly income tax return even ... Read Answer >>
  4. Does everyone have to file a federal tax return?

    This may come as a surprise to many individuals, but not everyone needs to file a federal tax return. According to the IRS, ... Read Answer >>
  5. When would I need to use IRS Form 1040X when filing my tax return?

    If you've made a mistake on your tax return, you'll need to file a Form 1040X. Learn the details of what you need to do. Read Answer >>
  6. What is the difference between federal and state withholding tax?

    Discover whether you can file your taxes by yourself. The three main options for tax preparation are a tax professional, ... Read Answer >>
Hot Definitions
  1. Reverse Mortgage

    A type of mortgage in which a homeowner can borrow money against the value of his or her home. No repayment of the mortgage ...
  2. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  3. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  4. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  5. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  6. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
Trading Center