3 Easy Steps to Amend Your Tax Return if You Made an Error in California

Steps to Amend Your Tax Return

Step 1: Determine If You Need to File an Amended Tax Return

a. Common Reasons to Amend

You might need to file an amended tax return in California for various reasons. Here are some common scenarios:

• You discovered additional income, deductions, or credits not reported on your original return.
• You need to change your filing status.
• You made an error in calculating your tax liability.
• You received an updated tax form (e.g., a corrected W-2 or 1099).

b. When Not to Amend

You don’t need to file an amended return for every small error or omission. For example, if you make a math error, the California Franchise Tax Board (FTB) will generally correct it for you.

Step 2: Prepare Your Amended Tax Return

a. Gather Necessary Documents

Before you begin the process of amending your tax return, gather all relevant documents, including:

• A copy of your original tax return (Form 540 or Form 540 2EZ).
• Any new or corrected tax documents, such as W-2s, 1099s, or K-1s.
• Supporting documentation for changes in income, deductions, or credits.

b. Complete Form 540X

To amend your California tax return, complete Form 540X – Amended Individual Income Tax Return. This form lets you report changes to your original return and calculate your new tax liability. Be sure to fill out all necessary sections explaining any changes made.

c. Calculate New Tax Liability

Using the information provided on Form 540X, calculate your new tax liability. If you are owed a refund or have additional tax due, this will be reflected in the “Amount You Owe” or “Overpaid” sections on the form.

Step 3: Submit Your Amended Tax Return

a. Mail Submission

Once you’ve completed Form 540X and gathered all necessary documents, you can submit your amended tax return by mail. Send your package to the appropriate address listed in the Form 540X instructions. Be sure to include any required attachments, such as updated tax forms or supporting documents.

b. Electronic Submission

The FTB does not allow the electronic filing of amended tax returns. If this changes in the future, follow the updated guidelines provided by the FTB for electronic submission.