Table of contents:
What is an amended tax return?
An amended tax return is a corrected version of a previously filed tax return. It is used to fix errors or omissions, such as unreported income, incorrect filing status, or overlooked deductions and credits, on your original return. Occasionally, the IRS also introduces new tax deductions or rules after the tax season has ended. In such cases, taxpayers may file an amended return to take advantage of those changes retroactively.
To file an amended return, you must use Form 1040-X (Amended U.S. Individual Income Tax Return). This form allows you to revise your original Form 1040 and bring your tax filing into compliance with IRS requirements.
You may file an amended return within three years of the original return’s due date or within two years of the date you paid the tax—whichever is later. You can amend any of your tax returns from the last three years, and if necessary, file multiple amendments for the same tax year to address different issues.
❗ Important note: Filing an amended return does not automatically trigger an audit or raise a red flag with the IRS. According to IRS data, less than 0.5% of individual returns are selected for audit, and filing a 1040-X for legitimate reasons is considered a normal part of tax compliance.
When should you file an amended return?
You may need to amend your return in the following situations:
You need to report additional income not originally included.
You want to claim missed credits or deductions.
You need to remove credits for which you were not eligible.
You want to change your filing status (e.g., from Single to Married Filing Jointly).
You need to change the number of dependents claimed.
You received an IRS letter rejecting or questioning your original return.
How to request an amendment if TFX prepared your original return
If TFX prepared your original return and you need an amendment, you can submit a Previous return issue report through your TFX account. To begin the process:
Log into your TFX account and go to the Previous return issues section.
Click Create new report and fill in this form:
Specify the tax year of the incorrect return.
Select the name of the tax preparer who worked on your return.
Upload relevant documents, such as a copy of IRS or state tax authority letters, forms you prepared yourself, etc. Click Choose files > Upload more... > Submit.
If you prepared any tax forms yourself, specify them.
Describe the issue and click Submit.
Pay the $250 bill.
⚠ Note: A $250 prepayment is required only if you self-prepared any tax forms. If an amendment is warranted, $250 will be applied toward the amendment fees.
After 1-3 business days, our tax team will review your report and contact you via email with the next steps.
If an amendment is warranted, you will receive an Engagement Letter (EL) outlining the exact amendment cost.
Amendment costs (TFX-prepared returns)
If TFX has prepared your return and an amendment is later required, we offer a flat-rate amendment service of $175 per Form 1040-X (Amended U.S. Individual Income Tax Return) for straightforward cases, including:
Typos or minor adjustments.
Unreported U.S. bank interest or dividend income if gross income remains below $100K.
The IRS disallows the moving expenses deduction due to lack of documentation, and an adjustment to Form 1116 is required because the increased earned income affects tax, but the IRS did not adjust the foreign tax credit.
A different pricing structure will apply in the following situations:
TFX errors:
If the issue was caused by TFX, regardless of the type (e.g., data entry error, miscalculation, or omission of a treaty exemption), the amendment is free of charge.
Incorrect SSN provided:
If the IRS disallowed the personal exemption due to an invalid SSN and assessed tax, an amendment is not required. Instead, send a copy of the Social Security card along with an explanation letter to the IRS, requesting that they allow the personal exemption based on the corrected SSN.
Omitted brokerage transactions:
If you omitted 5 out of 10 transactions, while the original return included 5, the amendment cost is $200 ($175 for Form 1040-X + $25 for 5 new brokerage transactions)
⚠ Note: Since this is an amended return, additional transactions are not free even if they fall within the 10-transaction limit. Only new transactions are charged; previously reported ones are not billed again.Unreported retirement income (gross income increases to >$100K):
If unreported retirement income increased your gross income from $90K to $120K, the amendment cost is $275 ($175 for Form 1040-X + $100 surcharge for income over $100K).
Unreported foreign corporation (no distribution):
If interest income from a foreign corporation was unreported, with no distributions, and only Form 5471 is required (no change to Form 1040), the amendment cost is $800 ($625 for Form 5471 + $175 for Form 1040-X).
Unreported foreign corporation and dividend distribution:
If dividends are now reported from the foreign corporation, increasing gross income above $100K and triggering FATCA reporting thresholds, the amendment cost is $1,000 ($625 for Form 5471 + $175 for Form 1040-X + $100 surcharge for income over $100K + $100 for Form 8938 (FATCA)).
⚠ Note: If gross income remains below $100K, the total cost is $900.
How to request an amendment if TFX did not prepare your original return
If your tax return was prepared by another firm or self-prepared, you can request our Prior return review service. Our tax professionals will review your return and determine whether an amendment is necessary.
To request an amendment:
Navigate to the Services section and select Review prior return.
Click Order service.
Check the box next to "I have read and agree to the TFX Terms of service" and click Continue.
Prepay $250 per tax year. For alternative payment options, please contact our Customer Success team.
⚠ Note: A $250 prepayment is required only if the original return was self-prepared or prepared by another tax firm. If an amendment is warranted, this amount will be applied toward the amendment fee.
Upload the following in the Documents section of your TFX account:
A copy of your original tax return that needs to be amended.
Any related IRS or state tax authority letters (if applicable).
If you already have an assigned tax preparer, email them to notify that you are requesting a review and possible amendment of a prior return.
What happens next:
The review process typically takes 10 business days.
Your tax preparer will create a bill and a PDF document (please settle a bill with available credits to unlock it) and:
Explain any potential consequences of errors found.
Advise whether an amended return is recommended.
Clarify whether any refund justifies the amendment cost.
Ask you to fill in a new Tax Questionnaire (TQ) if an amendment is warranted.
Issue an Engagement Letter (EL) outlining the exact cost of the amendment.
Notes:
If you need to amend a return prepared elsewhere, we will need to recreate your return from scratch. Even small corrections can impact your tax bracket, deductions, and overall tax liability.
If you've submitted an IRS letter or a Prior return review request and haven't heard from our tax team within 10 days, please contact our Customer Success team. They will try to speed up the review process.
Amendment costs (self-prepared returns)
If your original return was not prepared by TFX, the cost of an amendment includes:
The standard fee for preparing a new tax return (based on complexity), plus
$175 for filing Form 1040-X (Amended U.S. Individual Income Tax Return)
IRS processing times for amended tax returns and important notes
State tax amendments may be required if your federal return is amended. Please consult your TFX tax preparer to confirm whether a state amendment is necessary.
Electronically filed amended returns are typically processed within 12 weeks.
Paper-filed amended returns can take 16 weeks or longer to process, depending on IRS workload and any backlogs.
Once your amended return is filed, the IRS generally issues refunds within 12–16 weeks, but delays can occur, especially during peak tax season or if additional documentation is requested.
To check the status of your amended return, use the IRS Where’s My Amended Return? tool. Updates are available three weeks after submission and are refreshed daily. You will need:
Your Social Security Number (SSN)
Date of birth
ZIP code from your original return
Notes:
If it has been over 16 weeks without an update, contact the IRS directly about your amended return status. You can use the following phone numbers:
800-829-1040 for individuals (Form 1040 filers)
800-829-4933 for business callers
267-941-1000 (not toll-free number) for international callers or overseas taxpayers
Overseas taxpayers may also fax a tax question to 681-247-3101 or use the IRS international contact address page.
For situations where IRS delays or issues arise with your amended return, TFX offers Representation services. These services include direct communication and negotiation with the IRS on your behalf. The cost starts at $200 per hour with a two-hour minimum. This service requires completing a Power of Attorney form to assign TFX as your representative.
Do not file a second amended return for the same issue unless directed to by the IRS or your tax preparer.