Amended returns, filed on Form 1040-X, are used to make corrections to a previously submitted and accepted tax return. An amended return can be completed for any tax year, however, if a change to a taxpayer’s return requires the IRS to issue a refund, the changes must be made using Form 1040-X within 3 years of the original return’s due date, or 2 years from the date the return was paid, whichever is later. If the taxpayer owes money to the IRS, the tax return can be amended for any year using Form 1040-X. While most filing statuses can be changed with an amended return, changing from Married Filing Joint to Married Filing Separate is not permitted after the original due date of the return.
To file an amended return in the Keystone Tax Solutions Pro Program, begin with the original tax return as it was sent to the IRS. If you did not file the original tax return, you can choose to either recreate the original tax return in order to pull the information to the amended return, or you can complete the corrected return and manually enter the original column information on Form 1040-X.
The IRS does not accept amended returns electronically. The amended return and any supporting schedules and forms should be mailed to the appropriate address found in the Where to File section of the Instructions for Form 1040-X.
To create an amended return in Keystone Tax Solutions Pro, from the Main Menu of the Tax Return (Form 1040) select:
- Miscellaneous Forms
- Amended Return
- Edit Form 1040X
- Select the Tax Year to amend
- Select Original Column – the current information from the return will be pulled to the original column of the 1040-X
- Exit back to the Form 1040 Menu
If a state return is also being amended, select State Return and select the state that is being amended.
NOTE: Amended returns vary by state. Some states have a separate amended form and other states have a check box on the main form indicating an amended return.
- Locate the Amended Return for the state. To locate the amended return in a state program, click on the Form Finder Icon at the top of the screen. Generally, if the state has an amended return check box on the main form, the option to mark the box will be found in Personal Information > Other Categories. If the state has a separate amended return form it can generally be accessed from the main menu of the state program or in the Miscellaneous Forms Menu.
For states with an amended form:
- Select the Tax Year to amend if prompted
- Select Original Column – the original information on the state return will be pulled to the Original Column of the state’s amended return
- Exit back to Client’s Federal 1040 Menu
- Make any necessary changes/corrections to update the tax return (add a W-2, etc.)
- Return to the Federal 1040X Menu
- Edit Form 1040X, select the tax year for the amended return
- Select Corrected Column – the corrected information from the return will be pulled to the corrected column of the 1040X
- Select Questions & Explanation
- Explanation – Once you have typed in an explanation, select the OK button and return to the Form 1040-X Edit Menu.
- Return to the state
NOTE: You should manually verify that any overpayment made with the original return or refund from the original return is correct. You should also verify that any changes made to dependent information have been updated. If you did not have a state return to amend, you may now print the Form 1040-X. If you amended the state return now you will need to pull the new data into the State Return.
Open the state return and navigate to the Amended Return Menu.
- Select the Tax Year to amend
- Select Corrected Column – the corrected information on the return will be pulled to the Corrected column of the amended return.
- Select Explanation of Changes – You will be asked if you would like to pull the federal explanation to the state return. The state amended return is now complete and ready to print.
If your state requires the three columns, from the Main Menu of the Tax Return (Form 1040) select:
- State Return
- Select the state you will be amending from the list
- The Amended Return will be located in Miscellaneous Forms for most states.
- Select the Amended Return
- Edit the State Amended Return
- Select the Tax Year to Edit
- Select the Original Column
- Exit to the Form 1040 Menu
If you are not amending a state return you will need to make the necessary changes to the federal return. From the Main Menu of the Tax Return (Form 1040) select:
- Miscellaneous Forms
- Amended Return (1040X)
- Edit 1040X Menu
- Select the Amended Return to Edit
- The changes made to the return will appear on the 1040-X Menu
- You can enter an Explanation of the Changes and print the 1040X Form from this screen.
NOTE: You should manually verify that any overpayment made with the original return or refund from the original return is correct. You should also verify that any changes made to dependent information have been updated. If you did not have a state return to amend, you may now print the Form 1040-X. If you amended the state return now you will need to pull the new data into the State Return.
Open the state return and navigate to the Amended Return Menu.
- State Return
- Select the state you will be amending from the list
- Select Miscellaneous Forms (for most states)
- Select the Amended Return
- Edit the State Amended Return
- Select the Tax Year to Edit
- Select the Corrected Column
- Select Explanation of Changes – You will be asked if you would like to pull the federal explanation to the state return. The state amended return is now complete and ready to print.
NOTE: This is a guide to creating a federal amended return in Keystone Tax Solutions Pro. This is not intended as tax advice.
Additional Information:
Instructions for Form 1040X – Amended U.S. Individual Income Tax Return