How To File an Amendment After Claiming MCTR As Taxable Income

Last year, California issued the Middle-Class Tax Refund (MCTR) to millions of taxpayers. However, the IRS didn’t declare the MCTR as non-taxable until after tax filing opened. This led to people claiming the MCTR as taxable income and overpaying the IRS.

If you claimed the MCTR as taxable income on your return, you may have overpaid tax to the IRS. Filing an amended return will help you claim this overpayment to increase your refund, or reduce the amount owed. 

How Do I Know if I Claimed the MCTR as Taxable Income?

If you’re unsure if you claimed the MCTR as taxable income, check your 2022 Form 1040 and/or Schedule 1. The MCTR was reported via a 1099-Misc, which is entered on line 8 of form 1040. If line 8 is blank, then the MCTR was not claimed as taxable income. 

If there is a value in line 8, then it’s possible you claimed the MCTR as taxable income. Check Schedule 1, line 8z. If you claimed the MCTR as taxable, then the amount you claimed will be on this line.

How Do I Amend my Tax Return?

The Basics:

Returns are amended using form 1040-X to submit changes to the IRS. Form 1040-X reports the original values submitted, in addition to the changes made to the return. This makes it easy for the IRS to compare values between the original and amended returns. 

Click here for an example of a completed 1040-X

Continue reading below for tips on amending a tax return.

What you’ll need:

1. Your original tax return
2. All tax documents

Options to Amend a Tax Return:

It is easiest to amend a return using the same method used to originally file.

Option 1: If You Filed with a Free Tax Prep Site

If you filed at a VITA site, it is recommended to amend at the same site. If that site is unavailable, it is possible to amend at a different site, but they will need a little extra time to enter the original return details.

Option 2: If You Self Filed Online

If you self-filed online, the software you used will likely have a method to amend your return. Consult the instructions on your filing software to see if it’s capable of filing your amendment.

If you used TaxSlayer through MyFreeTaxes.org, you can e-file your amendment by selecting E-file in the main navigation menu. Then, select the Amended Return menu item that appears below it in the navigation menu.

Option 3: Amending using a different method than the one you used to file

If you are eligible for MyFreeTaxes software, you can prepare an amendment with us for free! 

To use MyFreeTaxes to amend a return that you originally filed using a different platform follow the instructions below:

1. 1. Re-create the original return in the software, but do not submit it. Once done, move to step 2.
   2. Edit the return to include the changes necessary for the amendment. Print out this amended return and write “Amendment” at the top of each page.
   3. Manually complete IRS Form 1040-X, completing the information in Column A from your original return and Column C from your amended return.
      • Use a calculator to determine the figures to input in Column B, subtracting Column C from Column A.
   4. For Part III, explain changes made to return values by line number. For example, if there is a change in line 1, write “Line 1: Write the reason for change here”
   5. Print Form 1040-X, and follow the IRS instructions for assembling the amendment documentation. (CLICK HERE FOR INSTRUCTIONS)
   6. Mail your amendment to the correct IRS address. The address for amended returns from California is: 

Department of the Treasury Internal Revenue Service
Ogden, UT 84201-0052