Filing an Amended Tax Return

Filing an Amended Tax Return | U.S. Expats in Colombia

Filing an amended tax return is a standard solution for correcting previous tax returns to receive a refund or pay additional taxes due.

If you realized you may have made a mistake on a previously filed federal or state tax return, don’t worry, it is possible (and required) to file an amended tax return by completing Form 1040X. At USATax.co we have filed many returned that helped our clients not only become totally compliant but also on many occasions save them money!

Until recently the IRS only accepted printed forms. However, since the 2019 tax year, they allowed U.S. taxpayers to submit the 1040X electronically if the originally filed return was also e-filed. This is great news if you are physically located in Colombia where the costs and time associated with mailing paper returns are high.

Filing an Amended Tax Return U.S. Expats in Colombia servide experts

Common Reasons Expats File an Amended Tax Return

Generally speaking, anyone should file an amended tax return when they realize a mistake in the previous filing. You may notice the error yourself, or the IRS will notify you if they discover an error, especially if you owe additional tax.

Some of the most common reasons for filing an amended tax return specifically for expats include:

Incorrectly reported income: If you need to change your income or expense totals because of a miscalculation, such as a miscalculation of the USD to COP exchange rate, you would be required to make an amendment.

Incorrect Filing Status: If you recently got married to a Colombian national that doesn’t have a SSN or ITIN, you may have mistakenly filed as single not knowing the IRS indeed recognizes your marriage. Learn more about how to apply for an ITIN for your Colombian spouse here. With an ITIN for your Colombian spouse, we can amend your return to be able to file as a married filing joint and reap the benefits of this filing status.

Missing tax credit: Perhaps you originally didn’t know about tax credits you could utilize as an expat such as the foreign earned income exclusion or the foreign tax credit. Amending and taking these credits could save you a lot of income tax that otherwise would have been paid.

Missing forms: Expat tax situations are complex and it’s possible to unknowingly miss a form. A major missing form for example could be a schedule C if your income is considered self-employment, or if you started an SAS and didn’t know you needed to include form 5471 this would be a critical reason to amend.

Missing or mistakenly claimed deductions: Deductions save you money when it comes time for your tax bill, and if you mistakenly took a deduction and paid less tax than you should have it is better to correct the error before the IRS identifies it. On the other hand, if you paid more tax than required because of a missing deduction, amending may save you on your tax bill.

For every tax year that you need to correct, you will need to complete a separate 1040X, along with any other forms or schedules that may also be affected by the corrections. If you’re hoping to receive a refund, you need to complete an amended tax return within three years of the original filing date or within two years of paying the tax (whichever is later).

Consult and File with Experienced Professionals at USATax.co

If you are realizing that there may have been an error in your previously filed returns, get in touch with the expat tax professionals at USATax.co. We will analyze your situation, walk through the returns in question, and help you file an amended tax return quickly and confidently if required.

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