In case you want to file an amended tax return but do not know if it is advisable to submit it electronically as this could take less processing time, then your answer is yes. Filing electronically can help save you some time when compared to the old-fashioned paper way of doing things. Here’s how and what to expect in the process.
Faster Processing, But Not Instant
Amending returns filed electronically can be processed quickly in about one to two weeks than their paper counterparts. This is because there is no use of postal services and manual data entry, especially where such returns must be submitted electronically. Nevertheless, an amended tax return always takes around eight to twelve weeks before being finalized. It may take up to sixteen weeks for extra scrutiny or for errors to be identified.
Tracking Your Return
The IRS introduces “Where’s My Amended Return?” in a similar vein to say that its online tool can track your return. You can also call their toll-free number at 866-464-2050 for updates. You can put your mind at ease with these methods since they provide the status three weeks after sending returns.
Common Reasons for Delays
Nevertheless, sometimes faster e-filing is not the best option because there are reasons why your amended return might take longer than twelve weeks to process. For example, delays may occur:
- Due to errors in your return or incomplete return forms
- IRS requests for extra information
- Identity verification issues
- Fraud issues.
In this situation, it may require routing of our return through a specialized department or may call for approvals by other IRS offices, thus prolonging the processing period.
How to File Electronically
When you are prepared to submit your electronic amended return, starting is simple. Through the tax software vendors, you can adjust your Form 1040, 1040-SR, 1040-NR, or 1040-SS/PR for both the current and previous two tax years. Make sure to check whether the application you have chosen supports e-filing for adjusted returns and follow its unique commands.
Remember that up to three amended returns can be filed electronically in a single taxation year. Any more withdrawals than this will be outright discarded by the computer.
Direct Deposit for Refunds
There’s also another advantage of filing digitally, which is adding your request for a direct deposit refund. This applies only to amended returns filed for tax year 2021 onwards, so make sure you input details about your bank account when submitting an online Form 1040-X.
Hot Take: Electronic Filing for Amended Returns Isn’t the Miracle Fix You Think It Is
The process of filing your amended return could save you a week or two, but that isn’t exactly what many people anticipated. Although the IRS usually takes about 8-12 weeks or sometimes even longer, online submission still has its conveniences, and it is not overly quick.
However, on this aspect, electronic filing wins; preventing postal delays and allowing tracking of the return takes precedence. So, in case one needs to receive their refund fast, they will not experience a difference between going online and mailing.
