Amending Tax Returns

Today TaxMama hears from Amy in the TaxQuips Forum with a common type of question. “My sister is amending her tax return to claim the homebuyers credit. But the original tax return had a ream of ages. Does she need to include them all with the Form 1040X amended tax return?”

Dear Amy,

Your sister does not need to include all the schedules on the old tax return.  If the only change she is making is to add a Form 5405 for the Homebuyers Credit, just include the first two pages of the old Form 1040.

 Include the first two pages of the new Form 1040 + the Form 5405. Nothing else should change.

 Naturally, Include the Form 1040X and all the documents to prove

1) That she owned the house for 5 years out of the last 8, and

2) That she lived in the house for 5 years out of the last 8.

 Simple.

 If anything needs to be explained, include a cover letter or disclosure statement with her contact information. It’s always wise to anticipate the kinds of questions IRS examiners would ask when looking at the information presented – and answer them. That will speed up processing and reduce correspondence.

 And remember, you can find answers to all kinds of questions about Form 1040X, and other tax issues, free. Where? Where else? At www.TaxMama.com.

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