For additional Form 1040-X Tutorials:
Form 1040-X for Child Tax Credit:    • IRS Form 1040-X  |  How to File Amend...  
Form 1040-X for IRA Contributions:    • IRS Form 1040-X  |  How to File Amend...  
Form 1040-X for Foreign Tax Credits:    • IRS Form 1040-X  |  How to File Amend...  
Form 1040-X for Passive Activity Loss:    • IRS Form 1040-X  |  How to File Amend...  
Form 1040-X for Change of Filing Status:    • IRS Form 1040-X  |  How to File an Am...  

Form 1040 income tax returns can be amended by filing IRS Form 1040-X. Amended tax returns are filed to correct mistakes made on an original return, and they can be filed for certain carryback claims.

In this example, we look at a taxpayer who needs to file an amended tax return to correct the stock basis reported on the sale of publicly traded securities. The Taxpayer sold shares in a company and reported a basis of $0, which was incorrect. The taxpayer files the amended return to correct the basis and net long-term capital gains. By correcting the mistake, his taxable income decreased, and he was entitled to a larger tax refund.

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DISCLAIMER: The information provided in this video may contain information about tax, financial, and legal topics. Such materials are for informational purposes only and may not reflect the most current developments. These informational materials are not intended and should not be taken as tax, financial, or legal advice. You should contact an advisor to discuss your specific facts and circumstances. Self-help services may not be permitted in all states or jurisdictions. The use of these materials does not create an attorney-client or confidential relationship. This video does not include information about every topic or issue related to these informational materials.

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