Amended Tax Return (1040X)
You need to file or apply for amendment of your tax return when a correction or alteration is required to do which may affect your tax calculation and deduction but you have to be sure about the deadline to amend tax return. You can amend your tax return if you receive any additional income after the filing of your tax or adding or removing any dependents for claiming or any tax credits.
Variation of deadline to amend tax return:
Three years from the original date of tax return is the deadline to amend tax return. But this may change for various reasons as less worthy securities or bad debt which may extend up to seven years after the deadline to amend tax return. Any mental trauma or physical illness which may affect to calculate the tax or manage documents may get an extension after the due date of amended tax return. Another reason can be identified as unused credit taken for the business which may be calculated after three years and may get the extended time for amendment. In every cases you have to use the 1040X form usually but 1045 also used for some special case for an amendment of tax return.
Reasons for amendment of tax return:
Generally various reasons can be identified for amendment of tax return among them one of the reasons is filling tax return early. You may file your tax return early to get the refund quickly. But at the end of the day you found that your income is much higher or you had a loss of income, but until you will inform that to the Government your tax return will be high and you may not get any refund and pay extra. Therefore you need to amend that return before it reaches the deadline to amend tax return. Some natural calamity may wipe out your records or some technological disorder like hard disk crash or viral attack may remove all your income records and may take lots of time to recover that. You may assume or estimate the income abruptly and file the tax return. But later when you get back all your records you may find that your income is higher than you returned. Some other reasons as losses due to any robbery or theft, protective filings etc. can be identified as the amended tax return.
Any sort of mathematical error or mistake is not required for amendment on tax return because that will be checked by the government tax departmental computer system. But you have to be aware about the deadline to amend tax return which is mentioned in the 1040X form along with other instructions.