Posted on: 30 April, 2003
Author: Wayne M. Davies
Tax Tidbits: ... by Wayne M. Davies of ... but sweet tax nuggets for the Small Biz Owner ... Person, each morsel serving up a specific ... strat Tax Tidbits: Presented by Wayne M. Davies of www.YouSaveOnTaxes.com.Short but sweet tax nuggets for the Small Biz Owner and/orSelf-Employed Person, each morsel serving up a specific taxreduction strategy guaranteed to tickle your monetary taste-buds.The U.S. Tax Code is so big, there's only one way to digest it: one little nibble at a time.Just like a piece of candy, one small bite of taxknowledge can give you one very delicious deduction!============================================================Tax Tidbit #2:How To Get A $1,000 Refund By Filing An Amended Tax Return-- by Wayne M. DaviesCopyright 2003 Wayne M. Davies Inc.============================================================Aren't you glad another Tax Season is over? Ah, yes -- another tax return filed, another tax return"in the books."Well, I've got a pleasant surprise for you.Did you know you can actually get a refund for a returnthat you already filed?Yep, it's true.If you think you forgot a deduction on a previously filedreturn, you have three years to tell the IRS about it andreceive a refund.Here's how it works: You can file an amended return up tothree years after the due date of the return in question.So, for Year 2002 returns due April 15, 2003 -- you haveuntil April 15, 2006 to file a correction.For Year 2001 returns due April 15, 2002 -- you have untilApril 15, 2005 to file a correction.And for Year 2000 returns due April 15, 2001 -- you haveuntil April 15, 2004 to file a correction.Now the question becomes: Is it worth it? I mean, do youreally want to spend the time and energy doing taxpaperwork -- and it's not even Tax Season!I know, I know -- you've got better things to do withyour time.So here's an incentive to make it worth your time: If I offered you a little part-time job that paid about $140per hour, would you be interested? I think so.Well, that's how you should look at the task of filingan amended tax return. Do the math:You discover $1,000 of unreported deductions on your returnfrom Year 2000, 2001 or 2002. So you do the research,prepare the proper forms (or have your accountant do it),and send them off to the IRS.If you are in the 35% tax bracket (say, 30% federal plus5% state), you will get a $350 refund for your efforts. Andeven if it took you 2.5 hours of paperwork drudgery, UncleSame just paid you a cool $140/hour. Not bad, eh?To file an amended federal income tax return, here are the links to the necessary forms:Form 1040X -- in pdf format:http://www.irs.gov/pub/irs-pdf/f1040x.pdfForm 1040X -- in "fill-in" pdf format:http://www.irs.gov/pub/irs-fill/f1040x.pdfIRS instructions for Form 1040X:http://www.irs.gov/pub/irs-pdf/i1040x.pdfYou should also file an amended state return (assuming yourstate has an income tax). For a link to a database of allstate income tax forms, check out:http:/ axes.yahoo.com/stateforms.htmlDon't forget: if you're able to find $1,000 worth of unreported deductions on one previously filed return(resulting in tax savings of $350), there's a good chancethe same situation exists for the other 2 "open" years.End result: $350 x 3 = $1,050 in total tax savings . . .. . .Hmm, mmm, good! Now that's a tasty little morsel! Article Tags: $1,000 Refund Source: Free Articles from ArticlesFactory.com