If you discover receipts or paper work that provide a paper trail for legitimate tax deductions you still have time to go back and amend your tax return.
Under the current tax law, returns filed in 2009, 2010 and 2011 are still eligible for amended returns and in theory, a better refund.
Todd Baldwin a long time certified public accountant says “it depends on what you forgot.”
“If it’s a big item," says Baldwin, ”it could be thousands of dollars.”
The IRS allows three years from the date of the original tax filing.
There is an exception. If you filed for a three month extension for your 2008 return, you still have until October 15th to get it right.
The IRS regional office in Tampa projects 469,000 Florida taxpayers will file amended returns this year.
Winter Park Accountant, Martin Prague, says not every deduction is worth the trouble.
“Our policy is we check it out and if it isn’t worth it, we suggest they not file an amended return.”
Still checking your files for missed deductions can be a valuable exercise in the tax refund circuit.
Baldwin says the most misunderstood deduction item is “cancelled debt.”
Tax experts say homeowners using short sales to unload homes they can’t afford any more usually receive a notice of cancelled debt.
Many tax payers list that figure as income.Baldwin says that kind of mistake is the perfect reason to file an amended return.
“We just did an amended return for a client and saved him about $5,000 in taxes…” it could be bigger than that because this cancelled debt is in the 100's of thousands of dollars,” Baldwin said.
To file an amended return you will need form 1040-X.
For more information on tax amended returns go to : http://www.irs.gov/uac/Nine-Facts-on-filing-an-Amended-Return