Today’s tax tip: Get a jump on your taxes

Heck, mine have already been filed, and got my refund.

 

Our CPA filed ours electronically a couple of weeks ago. I procrastinated, and picked up our file copy today. Yikes! I failed to report some interest income. It was my fault. One of our 1099s was filed at home rather than making it to our CPA interview. Comparing this year's info with last year's return, our CPA asked me about a certain bank. Looking at my notes, I replied with interest on savings and checking, but forgot interest on CDs.

I assume our CPA will advise us to cash the refund check that is probably in the mail. Then, file an amended return and send a check for the small amount owed due to the mistake. Of course, I will owe the CPA an additional fee to straighten this out. It was another senior moment.

 

You have some choices here.

A corrected return can be filed and the difference in the tax paid by April 15.

After April 15 an amended return will be required.

Both of the above will cost you with the CPA.

Final choice.
Leave well enough alone if not a large some of money. IRS matching program will catch the 1099 and send a notice to you concerning the difference assessing additional tax. If you agree, you pay.

No cost for the CPA.

 

I have used tax Cut for years, But Now I have over the road expencse and was wandering if it covers the Standard Daily Deductions and such on that program

 

Most of them do.

It is on Form 2106. Follow the instructions on the form.

 

Thanks, Maybe I'll start my Taxes tomorrow. Groan

 

If you have problems, I will be home most of the day.

I had 1 corp and 3 personals delivered this week while I was out. I have to get them done and mailed Monday morning.

Plus, entertain myself with the forum.

 

Our CPA advises to wait until our refunds arrive. Then, call him for an appointment. He will prepare an amended return which someone else described as using a different form. I will ask about the difference between a corrected return and an amended return. We should have no problem mailing by April 15. The CPA also mentioned that it takes months for the IRS to process the 1099s.

I would rather pay the tax and the CPA fee than wait for the IRS to catch up with me or not.

The larger mistake I made in 2008 involved a transfer of shares from my dad to me as he attempted to repay a loan. There was no written loan agreement and no interest collected. It looked like a gift. We did not meet the 5-year look-back. I should have transferred the shares back and let him cash them during his Medicaid spend-down. By cashing the shares myself, I had to pay the capital gains.

 

I would not see a need of the written loan agreement. Not unusual for family members. Even a gift, I would have to research, but FMV comes into play somewhere.

Messing with Medicaid, it is advisable to have ducks in the row. Peace of mind as well.

Now, the good news.

You will not hear from the IRS before the amended return.