New amended return process for tax years 2017 and beyond January 2018 Tax News

Includes e-file!

Beginning in January 2018, individual filers will no longer use Form 540X, Amended Individual Income Tax Return, to amend Forms 540, 540NR Long, 540NR Short, or 540 2EZ for tax years 2017 or later.

Instead, we replaced Form 540X with the new Schedule X, California Explanation of Amended Return Changes, which reconciles the differences between the original and amended return to determine any additional amount owed or refund due. The Schedule X also provides a simplified approach for taxpayers to report the reason(s) for amending.

To amend, the taxpayer files Schedule X along with a 540 series form (540, 540NR Long, 540NR Short, or 540 2EZ) adapted with a checkbox to indicate the return is amended.

Also, starting with tax year 2017, taxpayers and tax practitioners are now able to e-file individual amended returns if the tax software used to prepare the return supports this. Contact your software provider to determine if they are supporting e-file for amended individual tax returns.

Amended return e-file is not supported for tax years 2016 and prior. Amended individual returns will continue to be paper-filed using Form 540X for these tax years.