Tax season can be a whirlwind, and sometimes, despite our best efforts, mistakes happen. You might have forgotten a crucial deduction, received a corrected tax form, or realized an error in your income reporting. Whatever the reason, if you need to make changes to a tax return you've already filed, you'll likely be looking at filing an amended return. And if you used TurboTax, a common question arises: How much does TurboTax charge to amend a return?
Let's break down the costs and the step-by-step process so you can navigate this with confidence.
The Big Question: Does TurboTax Charge to Amend?
Alright, let's get straight to it. If you originally prepared and filed your tax return using TurboTax, the good news is that there's typically no additional fee from TurboTax specifically for filing an amended federal return (Form 1040-X) for the same tax year and the same product version you initially used.
However, there's a crucial caveat: you might incur a charge if amending your return requires you to upgrade to a higher-tier TurboTax product.
Understanding the "Upgrade" Scenario
Imagine you initially used TurboTax Free Edition for a simple return (W-2 income, standard deduction). Later, you realize you had some stock sales that require Schedule D, which is only available in TurboTax Premier. In this case, when you go to amend your return, TurboTax will prompt you to upgrade to the Premier version, and you'll pay the difference in price between the Free Edition and the Premier edition.
This principle applies across all TurboTax products. If your amendment introduces new tax situations (e.g., self-employment income, rental property, complex investments) that weren't covered by your original TurboTax product, an upgrade fee will likely apply.
State Amended Returns
For state amended returns, the situation can be a bit more varied. While the federal amendment itself might not incur an additional TurboTax fee (unless an upgrade is needed), you might encounter a separate fee for amending your state return, depending on your state and the TurboTax product you used. Some states may allow e-filing of amended returns, while others still require paper filing.
Step 1: Did You File Your Original Return with TurboTax? (Engage the user!)
Before we dive into the nitty-gritty, let me ask you: Did you originally use TurboTax to prepare and file the return you now need to amend?
If Yes: Great! The process will be much smoother as TurboTax retains your original data. Proceed to Step 2.
If No: It's still possible to amend with TurboTax, but it will be a more involved process. You'll essentially have to input all your original tax data into the current year's TurboTax software before you can make the necessary changes for the amendment. This is often more complex and less recommended than using the software or service you originally filed with. If a paid preparer made a mistake, they should typically amend it for you at no charge.
Step 2: Wait for Your Original Return to Fully Process
This is a critical step that many people overlook. Do NOT amend your tax return until your original return has been fully processed by the IRS and your state tax agency.
Why is this important?
IRS Processing Time: The IRS needs time to process your initial return and any refund or payment associated with it. Filing an amended return before this can confuse their systems and significantly delay the processing of both your original and amended returns.
Avoid Complications: Waiting ensures that the IRS has a clear record of your first filing before you introduce changes.
You can usually track the status of your federal refund using the IRS "Where's My Refund?" tool. For state refunds, check your state's tax agency website.
Step 3: Accessing Your Return in TurboTax
Once your original return has been processed, it's time to get back into TurboTax.
Sub-heading: TurboTax Online Users
Sign In: Go to TurboTax.com and sign in to your account.
Navigate to Tax Home: From your Tax Home, scroll down to "Your tax returns & documents."
Select the Year: Choose the tax year for which you need to amend your return.
Find the Amend Option: Look for a link or button that says "Amend (change) your return" or "Amend a return that was filed and accepted." The exact wording might vary slightly depending on the year.
Start the Amendment: Click on the option to begin the amendment process. TurboTax will guide you through the steps.
Sub-heading: TurboTax Desktop (CD/Download) Users
Open the Software: You'll need the exact same version of the TurboTax Desktop software you used to file the original return for that specific tax year. For example, if you filed your 2023 return with TurboTax Deluxe Desktop 2023, you need that software.
Open Your Return: Open the tax file (.tax file) for the return you wish to amend.
Initiate Amendment: Within the software, usually under the "Tools" menu or a similar section, you'll find an option like "Amend a filed return" or "Start an amended return."
Step 4: Making the Necessary Changes
This is where you'll correct the information that was initially wrong or missing.
Sub-heading: Guided Corrections
TurboTax is designed to walk you through this process. It will typically ask you:
What do you need to change?
Why are you amending? (e.g., received a corrected W-2, forgot a deduction, changed filing status).
You'll then be directed to the specific sections of your return where you need to make adjustments.
Sub-heading: Be Meticulous!
Double-check all entries: Even if you're only changing one specific item, review other related sections to ensure consistency.
Keep records: Have all supporting documents for your original return and any new information readily available.
Understand the Impact: As you make changes, TurboTax will recalculate your tax liability. Pay close attention to whether you now owe more tax or are due a larger refund.
Step 5: Review and File Your Amended Return (Form 1040-X)
Once you've made all your corrections, TurboTax will generate Form 1040-X, the Amended U.S. Individual Income Tax Return.
Sub-heading: Federal Form 1040-X
This form summarizes the changes from your original return to your amended return.
It will show your original figures, the adjustments, and the new, corrected figures.
You'll also need to provide a brief explanation for why you are amending your return. TurboTax will prompt you for this.
Sub-heading: State Amended Returns
If your federal amendment impacts your state tax liability, you'll also likely need to amend your state return. TurboTax will guide you through preparing the necessary state forms (e.g., Form 1040-X equivalent for your state).
Sub-heading: E-filing vs. Paper Filing
E-filing (Federal 1040-X): The IRS now allows e-filing of Form 1040-X for the current tax year and the two prior tax years, provided your original return was also e-filed. TurboTax supports this. This is generally the fastest method.
Paper Filing (Federal and State): If your original return was paper-filed, or if you're amending a return older than the e-file eligibility, you'll need to print and mail your amended federal return. Many states still require paper-filed amended returns.
Important Tip: If mailing, send your amended return by certified mail with return receipt requested. This provides proof that you sent it and that the IRS (or state) received it.
Step 6: What Happens After Filing?
Patience is key after filing an amended return.
Processing Time: Amended returns generally take significantly longer to process than original returns. The IRS typically states it can take up to 16 weeks or more to process Form 1040-X. State amended returns can also take several weeks or months.
Refund/Payment:
If you are due a refund: The IRS will mail you a check once your amended return is processed. Direct deposit is not available for amended return refunds.
If you owe more tax: You should pay any additional tax due as soon as possible to avoid penalties and interest, even if you are waiting for the amended return to be processed. TurboTax will provide payment options.
Key Considerations and Reminders:
Do You Need to Amend? Not every minor error requires an amended return. The IRS may correct small math errors on your original return. However, if there are changes to your filing status, income, deductions, credits, or dependents that affect your tax liability, an amendment is likely necessary.
Statute of Limitations: Generally, you have three years from the date you filed your original return, or two years from the date you paid the tax, whichever is later, to file an amended return to claim a refund. If you owe additional tax, you should amend as soon as you discover the error.
Keep Copies: Always keep a copy of your original return, your amended return (Form 1040-X), and any supporting documentation for at least three years from the filing date of the amended return.
10 Related FAQ Questions
Here are 10 frequently asked questions about amending tax returns with TurboTax, with quick answers:
How to know if I need to amend my tax return?
You need to amend if there's a significant error or omission that affects your tax liability, such as changes in income, deductions, credits, or filing status. Minor math errors are usually corrected by the IRS.
How to find the amended return option in TurboTax Online?
Log in to your TurboTax account, go to "Tax Home," scroll down to "Your tax returns & documents," select the relevant tax year, and look for an option like "Amend (change) your return."
How to amend a state tax return after amending federal?
After amending your federal return in TurboTax, the software will usually prompt you to amend your state return if it's affected. Follow the on-screen instructions to prepare and file the state amended form.
How to pay if I owe more tax after amending my return?
TurboTax will provide instructions on how to pay the additional tax due. You can typically pay online directly to the IRS or your state tax agency, or by mail with a check.
How to track the status of my amended return?
For federal amended returns, you can use the IRS "Where's My Amended Return?" tool. For state returns, check your specific state's tax agency website.
How to amend a prior year's tax return with TurboTax?
You can amend prior years' returns with TurboTax. For online versions, access the specific tax year. For desktop versions, you'll need the software for that particular year. E-filing may be limited for older years, requiring paper filing.
How to get a refund from an amended return faster?
Unfortunately, amended return refunds are typically sent by mail as a paper check and cannot be direct deposited. The processing time can be lengthy (up to 16 weeks or more).
How to know if my TurboTax product requires an upgrade for an amendment?
TurboTax will automatically inform you if the changes you are making during the amendment process require you to upgrade to a higher-tier product. You'll see the associated upgrade fee before proceeding.
How to avoid common mistakes when amending a return?
Double-check all your figures, ensure you have all supporting documentation for the changes, and carefully review the generated Form 1040-X before filing. Explain the reason for the amendment clearly.
How to get help from TurboTax if I'm stuck while amending?
TurboTax offers various support options, including their online community, FAQs, and the ability to connect with a tax expert through their TurboTax Live services (which may incur additional fees).