Make A Mistake On Your Taxes?

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!

Forgetting Deductions

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.

Double Trouble

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! 

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3 Responses to “Make A Mistake On Your Taxes?”

  1. Liz says:

    Great advice!

  2. Shannon says:

    This was so helpful! Definitely have to spend more time considering my deductions this year… or reporting them to my father, who is the only one of the two of us that’s looked at my taxes.

  3. Amy says:

    Dammit, I still have to submit my tax declaration!! I had totally forgot about it…
    There’s some good tips on there, thanks… thanks especially for reminding me!!! Do I still have time or what happens when I run late? Do I have to pay a fine or something???

Any Thoughts?