How to recover money lost from filing an incorrect tax return?

Thanks for the info! Do you know how long it typically takes to process an amended return? And will they just deposit the additional refund to my bank account automatically?

Processing time for amended returns is significantly longer than regular returns. Currently, the IRS is taking approximately 16-20 weeks (4-5 months) to process amended returns. This is much longer than the typical 21 days for regular returns, so definitely be prepared to wait. For the refund, if you received your original refund via direct deposit, they'll typically send the additional refund from the amendment as a paper check in the mail rather than direct deposit. Make sure your current address is updated with the IRS so you receive it properly.

How does it work with the actual forms though? Does it fill them out for you or just tell you what to put where? I've got a similar situation with missing childcare credits.

I'm skeptical about these tax tools. How does it handle state tax amendments? My issue spans both federal and state returns.

It doesn't completely fill out the forms automatically, but it gives you a detailed walkthrough of exactly what to enter on each line of Form 1040-X and Schedule A. It shows side-by-side comparisons of what you originally filed versus what the corrected values should be, which makes it super clear what needs to change. Regarding state returns, it definitely handles those too! I had to amend both my federal and state returns, and it guided me through both processes. The state amendment process varies depending on where you live, but it provides state-specific instructions once you tell it your location.

Wait, how exactly does this work? Sounds kinda sketchy tbh. Why can't they just improve the official IRS system instead of making us use third party services?

No way this actually works. I've been trying to talk to someone at the IRS for MONTHS about my amended return from last year. If it was this easy, everyone would be doing it.

It's not sketchy at all - they don't ask for any personal tax information. It's literally just a service that navigates the IRS phone system for you. They call the IRS, wait through all the holds and transfers, and then when they finally get a human on the line, they conference you in. The reason it works is they have a system that can stay on hold indefinitely while knowing which options to select in the phone tree. I totally agree that the IRS should improve their own system, but until that happens, this is a workaround. Think of it like paying someone to stand in line for you at the DMV - it's just saving you time on something tedious.

That's a great point! I completely forgot about my charitable donations last year. I gave about $2,200 to various organizations and I have all the receipts. Would that be worth including in my amendment too? Also, do I need to send in copies of my mortgage interest statement and donation receipts with the amendment?

Absolutely include those charitable donations in your amendment! $2,200 is definitely significant and will increase your refund further. Combined with your mortgage interest, you're well over the standard deduction threshold. You don't necessarily need to send in the documentation with your amendment, but you should absolutely keep all those receipts, donation acknowledgments, and your Form 1098 mortgage interest statement with your tax records. The IRS can request substantiation later, especially for amended returns which tend to be reviewed more carefully.

Yes, you actually can e-file Form 1040-X now! The IRS started allowing this in 2020. Most major tax software (TurboTax, H&R Block, TaxAct, etc.) supports e-filing amendments. It's wayyy faster than paper filing and you get confirmation that they received it.