2nd Quarter 2019

Retiree Corner: Amending a Tax Return

Tax returnWhen you filed your income taxes this year, did you discover any deductions or credits you may have overlooked in the past? It’s not too late to retroactively take advantage of those breaks. You have three years after the tax-filing deadline to amend your return and receive a refund. To do so, file Form 1040X for each year you need to amend and attach any tax forms that are affected by the change (available at www.irs.gov). You might also want to amend your state income-tax return, too.

Review your returns to see if you qualify for frequently overlooked tax breaks, such as the following:

If you contributed to a 457 plan, IRA, or other retirement-savings account, you may be eligible for the Saver’s Credit credit, which is worth 10%, 20%, or 50% of up to $2,000 in contributions per person, depending on your income. To qualify in 2019, your adjusted gross income must be less than $32,000 for single filers, $48,000 for head of household, or $64,000 for married filing jointly (the cut-offs are slightly lower in the previous years). Learn more at www.icmarc.org/saverscredit.

If you had any freelance income, you may be able to deduct the cost of equipment, supplies, a computer and phone line for the business, and other expenses. For more information, see the IRS Small Business and Self-Employed Tax Center at www.irs.gov.

Return to top