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. Adjusted Gross Income - AGI

    A measure of income calculated from your gross income and used ...
  2. Income Tax

    A tax that governments impose on financial income generated by ...
  3. Section 1341 Credit

    A tax credit available for taxpayers who are repaid in a later ...
  4. Personal Income

    Total compensation received by an individual. Personal income ...
  5. 1040 Form

    The standard Internal Revenue Service (IRS) form that individuals ...
  6. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
Related Articles
  1. Taxes

    10 Money-Saving Year-End Tax Tips

    Getting organized well before the deadline will curb your frustration and your tax liability.
  2. Retirement

    Tax Tips For The Individual Investor

    We give you seven guidelines to help you keep more of your money in your pocket.
  3. Term

    What Is Corporate Inversion?

    Corporate inversion occurs when a U.S. company buys or combines with a foreign company in a country with a lower corporate tax rate.
  4. Economics

    The Origins of the Puerto Rican Debt Crisis

    Learn why heavy bond issuance, economic decline, oppressive social spending and a declining population combined to bring about Puerto Rico's debt crisis.
  5. Retirement

    When a 401(k) Hardship Withdrawal Makes Sense

    If you've exhausted all other avenues, there are ways to withdraw funds before age 59½ – sometimes without the 10% penalty that's usually due.
  6. Your Clients

    Here's the Best Way to Skirt Capital Gains Taxes

    Taxpayers who know the rules for netting gains/losses can generate additional losses to net against the taxable gains in their portfolios. Here's how.
  7. Taxes

    What All the Candidates’ Tax Plans Are Missing

    The presidential candidates have starkly different tax-reform proposals – but none of them gets to the real problem of America's tax system.
  8. Economics

    3 Ways Tax Haven Governments Make Money

    If the governments of tax haven countries impose little, or no, income taxes, how exactly do these nations generate revenue?
  9. Taxes

    How Are Collectibles Taxed?

    If you plan to sell collectibles, it's imperative that you know the tax implications.
  10. Your Clients

    Panama Papers: What Advisors Need to Know

    Here is how clients may be impacted by some of the issues brought to light by the Panama Papers.
RELATED FAQS
  1. Are credit card rewards considered taxable income by the IRS?

    Learn about when the Internal Revenue Service considers the financial value of gifts received from credit card reward programs ... Read Answer >>
  2. What are the Best Ways to Lower My Taxable Income?

    Paying taxes is an unavoidable obligation each year, but individuals and business owners can take advantage of various strategies ... Read Answer >>
  3. Why Is Panama Considered a Tax Haven?

    Learn about the offshore tax haven of Panama, and discover the legal and tax structures that make Panama a premier Caribbean ... Read Answer >>
  4. Are 401(k) loans taxed?

    Generally, any money you borrow from a 401(k) account is tax exempt. This feature is one of the reasons that - for critical ... Read Answer >>
  5. Is dividend income taxable?

    Understand the laws and regulations regarding taxation of dividends, and know the rates at which dividend income is usually ... Read Answer >>
  6. Can a Limited Liability Company (LLC) issue stock?

    Learn about a limited liability company, or LLC, and if it is able to issue stock. Understand the benefits of an LLC, both ... Read Answer >>
Hot Definitions
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  2. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  3. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  4. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  5. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  6. Economies Of Scale

    Economies of scale is the cost advantage that arises with increased output of a product. Economies of scale arise because ...
Trading Center