Form 1040X Allows You to Correct Errors and Claim Additional Refunds on Your Overseas Tax Returns
What happens when you file your overseas tax return and later realize that you overlooked a source of income, made a slight miscalculation, or forgot to claim a tax credit? Thankfully, you don’t have to hide out and hope that you aren’t audited. Instead, the IRS offers a fairly easy way to amend your overseas tax return using Form 1040X.
Here are a few tips the IRS wants you to know about amending your federal income tax return:
- You can use Form 1040X to correct previously filed Forms 1040, 1040A, or 1040EZ.
- The form must be submitted by mailing in a paper copy. If you are amending overseas tax returns for more than one year, each correction should be submitted with its own form and sent in its own envelope.
- The IRS will automatically correct math errors, so do not file an amended return if you made a simple miscalculation.
- Form 1040X is also not required if you forgot to attach tax forms (such as W-2s or schedules) with your original overseas tax return. Instead, the IRS will send you a request to provide the document and will tell you how to submit it.
- Make sure that you write the year of the return that you are amending on the top of Form 1040X. In general, you must file your amended return within three years from the date you filed your original return or two years from the date you paid the tax, whichever is later.
- If the changes involve another schedule or form, you must attach that schedule or form to the amended return.
- If you are claiming an additional refund, wait until you receive your original refund before filing Form 1040X. You can cash the check prior to receiving your additional refund check.
- If you owe additional tax on your overseas tax return, file your amended return and pay the tax before the due date to limit interest and penalty charges that could accrue on your account. Interest is charged on any tax not paid by the due date of the original return, without regard to extensions.
- Normal processing time for Forms 1040X is 8 to 12 weeks from the IRS receipt date.
Please Note: Your state tax liability may be affected by a change made on your federal return. For information on how to correct your state tax return, contact your state tax agency.
How Greenback Can Help
If you prepared your overseas tax return yourself or are not sure whether your accountant prepared your return correctly, we can review your current year return for you and tell you whether it is correct. For a flat fee, our expat tax experts will walk you through the available exclusions and credits for Americans living abroad (such as the Foreign Earned Income Exclusion, the Foreign Housing Allowance, and the Foreign Tax Credit) to ensure that you have not overlooked any opportunities to limit your US expat tax liabilities. Contact us or visit our website at www.greenbacktaxservices.com to learn more.