I think I've made a huge mistake! (taxes)

**tbs727** · 04-04-2008, 03:53 PM

I've used the same tax program for the last several years it was free. Well this year I've used turbo tax (you can use the deluxe edition free if you are a State Farm customer) and I learned on there that all my husbands billed expenses (tuition and fees) are supposed to be deducted from our taxes. This includes the amounts paid by student loans. I always thought only the part we paid out of pocket would be deductable. I never even looked at the billed section (which is ultimately how much we will pay them plus interest). With this new information we went from owing what I thought would be $1700 to getting a refund for $130. He's been in college for several years and I didn't know this, the tax program I was using never mentioned it! I guess I'll be spending my weekend filing amended returns. Thankfully I can do that with turbo tax, too.

What a relief to not owe an additional $1700!

**larabelle** · 04-04-2008, 04:09 PM

How wonderful!! Also do not forgot to take off the cost of books (which cost an arm and a leg), computer system and software etc.

**staciah** · 04-04-2008, 04:43 PM

My DH has learned over the years from doing our taxes all the deductables. When we first did our taxes (right after we got married and bought a house and moved to another state) we had no idea all the deductable out there. I think back now about all the money we have lost to the IRS because of not knowing.
It's great that you found out before you paid the IRS more of YOUR hard earned money. I hope you can get some more back. Good Luck.

**FrugalMomof3** · 04-04-2008, 05:03 PM

That's great and yes, get those amended returns going, I think you have 3 years back in PA but not sure for your state.

**FrugalMomof3** · 04-04-2008, 05:03 PM

Sorry about that, I mean not State but federal, dummy me... long day

**tbs727** · 04-04-2008, 06:28 PM

I think you're right, Tracy, that we get 3 years to refile. I can't believed just that one thing saved me nearly $2000!

**FrugalMomof3** · 04-04-2008, 07:34 PM

I think that's awesome, I know what a burden it is to have to owe the IRS, thank goodness for you that you caught it this time. WOO HOO!

**PrairieRose** · 04-04-2008, 09:11 PM

Glad you switched programs Tiff, that's a huge difference. Hope you get the ammended returns done quick and painlessly too.

**mombottoo** · 04-06-2008, 05:10 PM

You can go back 3 years for amending returns I believe. At least you caught it this year and ended up with a refund, rather than a large bill!!!

**HandyMom** · 04-07-2008, 01:58 AM

I have a friend at H&R block who did my taxes for free this year. She found that my old tax preparer (an accountant my mom uses also) had been doing my taxes wrong for more than 10 years. I lost out on over $10,000! over the past years. I can only go back for 3 years to correct the mistakes and I'm just sick about it.

Nothing more I can do but tell my tale. Perhaps someone else will double check to see if there are mistakes on their taxes.

**tbs727** · 04-07-2008, 10:40 AM

Originally Posted by HandyMom

I have a friend at H&R block who did my taxes for free this year. She found that my old tax preparer (an accountant my mom uses also) had been doing my taxes wrong for more than 10 years. I lost out on over $10,000! over the past years. I can only go back for 3 years to correct the mistakes and I'm just sick about it.

Nothing more I can do but tell my tale. Perhaps someone else will double check to see if there are mistakes on their taxes.

Oh my gosh! It was very kind of your friend to do your taxes, but I bet you are really disappointed about losing that money, particularly to the IRS!

At least you will recoup some from the last 3 years.

**Jenna** · 04-18-2008, 12:22 AM

Originally Posted by HandyMom

I have a friend at H&R block who did my taxes for free this year. She found that my old tax preparer (an accountant my mom uses also) had been doing my taxes wrong for more than 10 years. I lost out on over $10,000! over the past years. I can only go back for 3 years to correct the mistakes and I'm just sick about it.

Nothing more I can do but tell my tale. Perhaps someone else will double check to see if there are mistakes on their taxes.

what items were left off of your returns? - if I may ask.

Mine are fairly simple - no house, no dependents, not enough deductions to itemize

**HandyMom** · 04-18-2008, 03:17 AM

Originally Posted by Jenna

what items were left off of your returns? - if I may ask.

Mine are fairly simple - no house, no dependents, not enough deductions to itemize

The accountant failed to claim the Earned Income Credit for my child. She mistakenly thought my income was not considered eligible because it was for a disability. Turns out there is a special rule for early retirement disability income and I was/am eligible for the credit after all. I looked up the specific IRS rule that was quoted to me by my friend from H&R block just to be certain there was no mistake. I've fired the accountant and warned others.