Make a mistake on your tax return? You can amend it
WAUSAU, Wis. (WSAW) - We’re all human and we make mistakes – sometimes that happens to be on your tax return. Have you ever missed claiming a credit or deduction that you found out about later? Or totally forgot to report some income items, gave an incorrect filing status, or simply realized some other mistake Well, that’s okay. There is a new Lookback rule, which was part of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, that allows you to amend previously filed tax returns. The process is simple and won’t risk additional IRS audit interest when done correctly.
The Lookback rule allows taxpayers to “look back” to their 2019 earned income amount to calculate their Earned Income Tax Credits (EITC) and Additional Child Tax Credits (ACTC). The rule allows taxpayers to use the best year (2019 or 2020) for the credits – as long as the taxpayer’s 2020 earned income is less than their 2019 earned income. This could result in larger EITC and ACTC to those who need it most during this financially challenging time.
Taxpayers who may have left their unemployment income off their 2020 tax return can file an amended return, along with taxpayers who were owed more stimulus money, but didn’t complete the Recovery Rebate Credit (RRC) on their tax return, are eligible to file an amended return.
While the IRS will likely not extend the tax deadline for filing 2020 returns, taxpayers are advised to file as soon as possible to get their tax refund faster and avoid any mistakes while rushing to meet the April 15th tax deadline.
On Friday, Mark Steber, Chief Tax Information Officer at Jackson Hewitt, joined NewsChannel 7 at 4 to reveal the top six things you need to know about amending tax returns and why you may need to make amendments before April 15.
Learn more at jacksonhewitt.com
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