Taxpayers who previously filed Form 1040-X with the IRS had to wait for a paper check for any refund, which added time to the amended return process. Anyone who electronically files Form 1040-X can now select direct deposit and enter their banking or financial institution information for faster refund delivery.
The current processing time for both paper and electronically filed amended returns is more than 20 weeks. Filing electronically eliminates the need for mail and offers a secure and convenient way to receive refunds faster.
According to IRS statistics, taxpayers file approximately 3 million amended returns annually. Although the IRS began electronically accepting Form 1040-X in 2020, it didn’t provide direct deposit as a refund option until now.
No matter how taxpayers file an amended return, they can still use the Where’s My Amended Return? online tool to check the status.
Adhering to the IRS system updates, those filing amended returns currently have access to the same speed and security as those filing an original Form 1040 tax return. If the software manufacturer offers it, taxpayers who file an original tax return through tax preparation software can file an electronic Form 1040-X.
Taxpayers can still submit a paper Form 1040-X and receive a paper check. They must follow the instructions for completing and submitting the paper form. Direct deposit is not available for amended paper returns.
Hiring a tax professional will reduce your chances of having to file an amended tax return even further. At a time when inflation is on the rise, any refund-related snag could be disastrous.
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