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Amending an Old Tax Return: How to Edit Form 8995


Content provided for general information. Talk to your advisor to learn about recent updates or other rules that may apply to your situation.

Amending a tax return can be a daunting and confusing process, especially if you have never done it before. It is important to make sure that all of your tax documents and forms are accurate and up-to-date to avoid any potential issues with the IRS. One common question that arises when amending a tax return is how to edit Form 8995. In this blog post, we will discuss the steps you can take to edit this form and ensure that your amended return is accurate and complete.

What is Form 8995?

Before we dive into the process of editing Form 8995, it is important to understand what this form is and why it may be included in your tax return. Form 8995, also known as the Qualified Business Income Deduction Simplified Computation, is used to calculate the deduction for qualified business income (QBI) for certain businesses. This form was introduced as part of the Tax Cuts and Jobs Act in 2017 to provide tax relief for small business owners and self-employed individuals.

If you received this form from an employer, it means that you are eligible for the qualified business income deduction and need to report it on your tax return. However, if you have discovered an error in the amount reported on Form 8995, you will need to amend your return to make the necessary corrections.

Step 1: Gather Your Documents

The first step in the process of amending your tax return is to gather all of the necessary documents. This includes your original tax return, any supporting documentation for the changes you are making, and any additional forms or schedules that may be affected by the changes. It is also important to have a copy of Form 8995 that was included in your original return.

Step 2: Consult with a Tax Advisor

Before making any changes to your tax return, it is always best to consult with a tax advisor. They can review your specific situation and provide guidance on the best course of action. They may also be able to provide additional information or resources for completing the amendment process.

It is important to note that the information provided in this blog post is general in nature and may not apply to your specific tax situation. A tax advisor will be able to provide personalized advice and ensure that your amended return is accurate and complete.

Step 3: Use the Correct Amended Return Form

When amending a tax return, it is crucial to use the correct form for the tax year you are amending. In this case, since you are amending your 2020 return, you will need to use Form 1040X for that year. You can find this form on the IRS website or by using tax preparation software, such as TurboTax.

Step 4: Make Changes to Form 8995

Once you have the correct amended return form, you can begin making changes to Form 8995. On Form 1040X, you will need to fill out the section for Schedule 1, line 9, which is where the qualified business income deduction is reported. You will also need to fill out Schedule 1, line 27, which is where you will report any changes to Form 8995.

To edit Form 8995, you will need to enter the corrected amount in the appropriate box and provide a brief explanation of the changes in the designated space. If you are using tax preparation software, it should guide you through this process and calculate the changes for you.

Step 5: File Your Amended Return and Wait for a Response

Once you have completed all of the necessary steps and made the appropriate changes to Form 8995, you can file your amended return. It is important to note that it may take some time for the IRS to process your amended return, so be patient. You can check the status of your amended return using the IRS's Where's My Amended Return tool.

In Conclusion

Amending a tax return can be a complicated process, but it is essential to ensure that your tax documents are accurate and complete. If you have received Form 8995 and need to make changes to it, follow the steps outlined in this blog post. Remember to consult with a tax advisor for personalized advice and always use the correct amended return form for the tax year you are amending.

It is also important to keep in mind that the deadline for amending a tax return is three years from the original due date or two years from the date you paid the tax, whichever is later. If you have any questions or concerns about amending your tax return, do not hesitate to reach out to a tax advisor for assistance. They will be able to guide you through the process and help you avoid any potential issues with the IRS.