Friday's Here! I'm ready for the weekend, how about you? It's time to wrap up work at the office, but I don't want to leave without imparting some wisdom to my readers. Many people have e-mailed me with concerns about their Tax Returns. They don't want to mess up and miss out on their money. So here it is, the 5 Common Tax Return Errors you need to avoid if you don't want to miss out on your deserved green.
1. Be Patient. Only file one 2007 Tax Return. It takes up to 12 weeks for the IRS to process paper returns and issue your stimulus payment. Some people get tired of waiting and try to file another Tax Return to speed up the process. Don't do it. It will do the opposite and cause your check to be delayed.
2. List Annual income, not your monthly income. If you don't list your annual income, you won't be eligible for the the minimum amount of $300. The income required by law is $3,000. This can be earned income, social security, or retirement pay.
3. Review your Tax Liability. Tax Liability is the net amount of Federal income taxes paid after deductions and credits. People who have small or no Tax Liability are getting smaller stimulus payments than they expected or none at all. The law provides for a maximum of $600 ($1,200 married filing jointly) or an amount equal to a taxpayer's tax liability, whichever is less.
4. Amended Returns: Generally, you can't file an amended return just to get a stimulus payment. The few exceptions: if you're a retiree, veteran, or have other "qualifying income."
5. Check the Address- I know I'm stating the obvious. But lots of people fail to use their current address or write their address incorrectly. You can't receive your payment on time if the address on your Tax Return is wrong. If you change addresses after filing, complete Form 8822 ("Change of Address") and a change of address card with the U.S Postal Service.
Income Too Low? Do you usually not file your taxes because your income is too low or nontaxable? You may still qualify for a return. Fill out form 1040a "Individual Income Tax Return".
Now You Have the Smoking Gun...Use it!
Labels: Amend Tax