Home | Work & Business | Finances & Banking | Business Deductions | How to Take Business Deductions for Previous Years

How to Take Business Deductions for Previous Years

by Bradley James Bryant
  • Overview

    Finding additional deductions is the best way to reduce your adjusted gross income, which helps to lower your tax bill. Finding the right deductions can be a difficult task, especially in a year with a changing political administration. It is not uncommon for new deductions to be introduced. The good news is that if you don't catch all your deductions this year, you have a few years to file back taxes with an amended return.
 
  • Step 1

    Discuss possible deductions with your accountant and read over "Publication 535, Business Expenses" in the IRS tax code for the most recent updates, which are usually listed first.
  • Step 2

    Gather your paperwork. You will need all receipts in order to verify business. You will also need your original paper work, including the tax return.
  • Step 3

    Download Form 1040X. This form has three columns. Input the numbers you filed on your original return in column 1. Show changes to the return in column 2, and write the corrected amount in column 3. It can take up to 12 weeks for the IRS to process amended returns.
  • 3

References & Resources