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Tax
Tidbit #2
How To Get A $1,000 Refund By Filing An Amended Return
OR
How
To Get Uncle Same To Pay You $180/Hour
by
Wayne Davies, EA
Every April,
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 return that you already filed?
Yep, it's
true.
If you think
you forgot a deduction on a previously filed return, you have
three years to tell the IRS about it and receive a refund.
Here's how it
works: You can file an amended return up to three years after the
due date of the return in question.
So, for Year
2008 returns originally due April 15, 2009 -- you have until April 15,
2012
to file a correction.
For Year 2009
returns originally due April 15, 2010 -- you have until April 15,
2013 to
file a correction.
And for Year
2010 returns originally due April 15, 2011 -- you have until April 15,
2014
to file a correction.
Now the
question becomes: Is it worth it? I mean, do you really want to
spend the time and energy doing tax paperwork -- and it's not even
Tax Season!
I know, I
know -- you've got better things to do with your time.
So here's an
incentive to make it worth your time: If I offered you a little
part-time job that paid about $180 per hour, would you be
interested? I think
so.
Well, that's
how you should look at the task of filing an amended tax return. Do the math:
You discover
$1,200 of unreported deductions on your return from a prior year. 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 30% tax bracket (say, 25% federal plus 5% state), you will get
a $360 refund for your efforts. And even if it took you 2.0 hours
of paperwork drudgery, Uncle Sam just paid you a cool $180/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.pdf
IRS
instructions for Form 1040X:
http://www.irs.gov/pub/irs-pdf/i1040x.pdf
You should
also file an amended state return (assuming your state has an
income tax). For a link to a database of all state income tax
forms, check out:
http://www.taxsites.com/State-Links.html
Don't forget:
if you're able to find $1,200 worth of unreported deductions on
one previously filed return (resulting in tax savings of $360),
there's a good chance
the same
situation exists for the other 2 "open" years.
End result:
$360 x 3 = $1,080 in total tax savings . . .
. . .Hmm, mmm,
good! Now that's a tasty little morsel!
Hungry for
another Tax Tidbit? This article is part of a 5-article
series:
Tax
Tidbit #1: http://www.YouSaveOnTaxes.com/tax-tidbit-1.html
Tax
Tidbit #2: http://www.YouSaveOnTaxes.com/tax-tidbit-2.html
Tax
Tidbit #3: http://www.YouSaveOnTaxes.com/tax-tidbit-3.html
Tax
Tidbit #4: http://www.YouSaveOnTaxes.com/tax-tidbit-4.html
Tax
Tidbit #5: http://www.YouSaveOnTaxes.com/tax-tidbit-5.html
Have
you heard about the recent tax law change that turned a small
business loophole into a crater?
http://www.YouSaveOnTaxes.com/tax-crater.html
Want
to know the biggest tax mistake you can ever make? (And how
to avoid it?)
http://www.YouSaveOnTaxes.com/tax-mistake.html
Do
you know why the most important business decision you
probably never made is the key to paying thousands less in taxes?
http://www.YouSaveOnTaxes.com/tax-decision.html
About The
Author:
Wayne
M. Davies is author of three tax-slashing eBooks for small
business owners and the
self-employed:
** The Tax Reduction Toolkit **
29 little-known but perfectly legal strategies
to reduce your taxes, postpone your taxes, and even avoid taxes altogether
-- for small biz owners & self-employed people only!
http://www.TaxReductionToolkit.com
**
Incorporation Tax Secrets Revealed **
How to save thousands in taxes by
forming a corporation or LLC for your small business or
self-employment activity. Discover the #1 Tax Secret of the Rich!
http://www.IncorporationTaxSecrets.com
**
How To Incorporate Yourself For Free **
How to
avoid paying $500, $1000, $1500 or more in lawyer fees by
incorporating your small business all by yourself...for FREE!
http://www.HowToIncorporateForFree.com
Wayne's eBooks are available separately, or
at a discount as a 3-volume set:
**
The Ultimate Small Business Tax Reduction Guide **
Find out just how easy (and legal) it is to reduce your
taxes by $2,000...$3,000...$4,000 or more!
http://www.SmallBusinessTaxReductionGuide.com
To
receive a free copy of Wayne's 25-page Special Report,
"How
To Instantly Double Your Deductions"
click
here:
http://www.YouSaveOnTaxes.com
www.YouSaveOnTaxes.com
A
Division of Wayne M. Davies Inc.
4660
W. Jefferson Blvd., Suite 220
Fort
Wayne, IN 46804
(260) 459-3858
Wayne@YouSaveOnTaxes.com
http://www.YouSaveOnTaxes.com
http://www.MagneticMarketing.biz
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