Amending a Tax Return

It happens to everyone from time to time. You file your tax return and a W-2 shows up in the mail or you realize you forgot to deduct your property taxes. All you need to do to fix the problem is amend the return.

There are times when you make no mistake, but still need to file an amended return. Foreign tax credits and deductions, net operating losses, bad debt, and worthless securities may require an amended tax return.

You have a limited time in which to file an amended return. In most cases, an amended return must be filed:

1. Within three years of the due date, including extensions, of the original return, or
2. Within two years of paying the tax.

You use form 1040-X to file an amended return. More details are available here.