by Alexandra Pauline – April 18, 2012
1040x to the Rescue!
Phew! Tax season is officially over…or is it? If you’ve just realized you made a mistake on your taxes, you’re not alone. One of the most common errors? Forgetting to sign the form! If it turns out that you have to revise what you filed, you’re in luck: Fab & Fru has teamed up with tax guru Nick Rizzi – the CEO of Smart Tax – to find out what mistakes are most common, and how a handy little form called the 1040x can help fix them!
A common tax mistake people make is forgetting to account for certain deductions. The great thing about deductions is that they reduce your tax liability – which leaves you with more money in YOUR pocket. So, if you’ve forgotten to account for a charitable donation you made or a hefty medical expense that is eligible – no need to worry. All you have to do is fill out a 1040x and you can amend any return from the past three years – and make a case to get your money back!
Cash in on Your Credits
Too often people forget about the tax credits owed to them when they make big purchases. According to Rizzi, “The IRS says Americans have overpaid almost a billion dollars in taxes due to missed deductions and credits.” For example, if you bought a house for the first time in the last three years and didn’t know you were entitled to a first time home buyers credit of up to $8000, you can also get your money back by filing for it on your 1040x.
If you have multiple jobs and forgot to submit the info for one, you can also use the 1040x and add it to your income as soon as you realize the error. The longer you wait, more interest will accrue on what you owe the IRS. Don’t wait for the IRS to call you – fix your mistake ASAP!
If You Get Audited…
The IRS is looking for mistakes. So if you’re claiming to have donated $50,000 to charity when you only make $60,000 a year, you better have record of your trust fund on hand! You will save yourself a lot of hassle and heartache if you have all your documents in order. Remember – the proof is in the paperwork!
Many thanks to Nick Rizzi for making this season a little less taxing for all of us!| Print