Question

Melvin timely filed his 2020 tax return on March 1, 2021. He was entitled to a $300 refund, which he received a few weeks later. Melvin later determined that he had failed to claim a refundable education credit for which he was eligible. The credit would have given him an even larger refund for that year.

Answer 1

Melvin can file an amended return to claim the refundable education credit for which he was eligible.

An amended return is a way to correct errors or omissions on a previously filed tax return. To file an amended return, Melvin would use Form 1040-X, Amended U.S. Individual Income Tax Return. On this form, he would make the necessary changes to his 2020 return to include the education credit, and recalculate his tax liability. If the credit results in a larger refund, Melvin will receive the difference in the form of a refund check.

It's important to note that Melvin only have a time limit to file an amended return, Typically, the limit is 3 years from the date the original return was filed, so in Melvin's case, it would be March 1, 2024. If he files an amended return after this deadline, he will not be able to claim the credit or any additional refund.

Also, it's recommended that Melvin double-check the information on the amended return before submitting it to the IRS. An amended return may trigger an audit and that means Melvin needs to be prepared to provide all the necessary documentation to support the changes he made to the original return.