by admin on 07/09/09 at 11:49 am
Extra federal income tax refund money is possible for some people this year if you have not been using an online tax preparation service in the past. With our economy in the dumpster, right now is a very good time to go to an online tax preparation site and make use of their programs to determine if the IRS owes you any more money on the last three years of taxes that were filed through offline tax preparation.
What has happened is that the online tax preparation sites have software programs that were made by a group of tax experts. The programs are programmed to ask taxpayers a series of questions that are designed to cover all allowable tax credits that are available under the laws so that each taxpayer can get the largest federal income tax refund possible. If a credit has been missed, the IRS will send the taxpayer all money owing.
The IRS will allow taxpayers up to three years to amend their taxes to get more federal income tax refund money if it can be found. The online tax preparation programs are finding some taxpayers literally thousands of dollars in missed credits from tax papers that were prepared offline. As an example, the government claims that up to 25% of taxpayers who can take the EITC credit missed it.
Credits like the EITC (Earned Income Tax Credit) are worth thousands of dollars per year to some tax payers. It is possible to get over $10,000 dollars on a new federal income tax refund for this credit alone if it has been missed for 3 years; other credits might apply as well. It is easy to use the online programs, simply tell the machine what year it is that you want to prepare a tax form for and then answer the questions that show on the screen.
Start with the year of taxes that is the furthest away from today when using an online system to check for extra federal income tax refund money. Let the machine figure out your taxes on the long form if an EZ form was originally filed. When done, print the information for mailing and move on to the next year. After all three years are done, examine your increased refund amounts against what was originally paid.
The IRS prefers that amended tax requests get mailed-in instead of using e-file systems. They prefer mailing because an employee must hand process the changes to ensure that you really are owed extra money from prior tax years and that the years you are applying for meet the 3-year time requirement for amendments. Online tax preparation sites really are a fantastic way to get some extra money with past federal income tax refund requests.