Many taxpayers think that once they file their tax returns, there’s nothing they can do to fix or update them. Thankfully, that’s not the case.
If you’ve made any errors or forgotten to include pertinent information on a recent Maryland or federal tax return, there’s likely still time to set it right by filing an amended tax return.
Keep reading to learn the essentials of filing an amended tax return in Maryland, including relevant deadlines, how to check the status of an amended return, and how to file one in the first place.
The most common reasons to file an amended tax return include income errors, incorrect filing statuses, and unclaimed deductions.
Even though a mistake likely will prompt you to re-file, the silver lining is that many taxpayers also have an opportunity to uncover significant benefits like missed deductions, unclaimed tax credits, and unreported additional income and withholdings. Correcting these simple errors actually could reduce your tax liability — or even result in a refund. So, when amending your federal and state tax returns (yes, you are required to amend both in Maryland), be sure to review the entire return in case you find additional errors that could work in your favor.
Of course, the opposite is also true, and you might wind up owing more in taxes than you originally thought. But it’s better to be honest and accurate now rather than potentially face a stressful and expensive audit in the future.
The deadline to file an amended tax return and receive a refund — federal or Maryland — is three years from the original filing date. This figure includes any extensions you might have filed and is subject to certain exceptions, so you should reach out to a skilled tax attorney for help. Once this deadline has passed, any refund you might have been owed becomes property of the government, so it’s in your best interest to take advantage of any resource at your disposal.
If you owe taxes, of course, the deadline is longer. The statute of limitations for federal tax debts is 10 years, so you could be on the hook for an amended return for as long as a decade following the tax return year in question. In Maryland, there is no statute of limitations, which means the comptroller’s office could potentially request an amended return whenever they discover a mistake they deem worth their while. In addition, amended tax returns are subject to federal and Maryland fees and penalties, so you’ll want to resolve any inaccuracies on previous returns as soon as possible.
If the IRS has notified you of the need to change an error on your return or if you’ve discovered a mistake and are taking proactive measures to fix the issue, you will need to amend both your federal and Maryland tax returns. As long as you originally filed your federal income taxes using a Form 1040 or Form 1040-SR, you are eligible to amend your taxes using a Form 1040X. Regarding your Maryland taxes, you’ll need to complete one or two of these three forms, depending on your resident status:
Unfortunately, if you owe additional federal taxes, you can pay that amount when you submit your Form 1040X to the IRS. If you owe more in Maryland taxes, you should mail your form(s), along with a check to satisfy the debt, to the Comptroller’s office. Also include your completed Form 1040X and all relevant W-2s, 1099s, and documentation to the State of Maryland and IRS.
The IRS and the Comptroller of Maryland’s Office are busy government entities, so you might be in for a bit of a wait if there is an adjustment to your outstanding debt or if you’re now expecting a refund. In fact, according to the IRS website, an amended federal return can take three weeks after the post date to even appear in their crowded system. From there, processing an amended return can take as long as 16 weeks.
Thankfully, you can check the status of your identity online with your social security number or tax ID and the exact amount of your refund. For your Maryland refund, click here. For a federal refund, click here.
Whether you’ve made a simple error or a grievous mistake on your tax returns, S.H. Block Tax Services has the skilled and experienced tax professionals you need to fix the problem and get square with the IRS. We have decades of experience identifying these problems, amending the filing for the best possible return, and minimizing or eliminating any related fees or penalties.
To learn more about our firm and receive a free consultation, please call (410) 872-8376 or complete this brief form today.
The content provided here is for informational purposes only and should not be construed as legal advice on any subject.
