Steps to Correct Tax Mistakes on Your 2023 Taxes

What to Do If You Made Errors on Your 2023 Taxes

Mistakes on your taxes can lead to serious financial headaches. Here's how you can clear up errors before they come back to bite you.

Why you can't just ignore a tax error

You might be tempted to do nothing about the error and hope the IRS doesn't notice it either. The chances of being audited are pretty low, but it's still not worth the risk. If the mistake caused you to underreport your income and the government catches wind of it, it could charge you additional taxes plus a penalty. And if it believes you were intentionally trying to hide some of your income, you could even face jail time.

If the mistake caused you to overreport your income or miss out on valuable tax breaks, doing nothing could cost you a part of your refund. This could be especially devastating if those tax breaks were worth thousands of dollars.

Filing an amended tax return

• You can correct your error by filing an amended tax return.
• On the Form 1040-X, you must enter the numbers as they appear on your 2023 tax return that you've already filed. Then, you must note the correct amounts and the differences between the two.
• You'll also need to write in an explanation of why you need to amend your return.

After you've submitted your amended return, the IRS will review it. This usually happens faster with e-filed returns than it does with paper returns. If the amended return is approved and results in a higher refund, the government will send you the additional amount you're owed.