An Amended Tax Return – Did you claim every tax?

Did you claim every tax break that you were entitled to in 2009? There were a lot of tax breaks. It was easy to miss a few according to Mary Beth Franklin in this month’s issue of Kiplinger. Here is the list.

Making Work Pay credit.

This is a 6.2% payroll tax worth up to $400 for individuals and $800 for married couples. There are phase out rules for those with high income. You must file Schedule M to claim the credit and have your tax adjusted. Check your 2009 tax return and if you didn’t claim the credit but are eligible for it, amend your return.

Breaks for Non-itemizers.

You needed to file a new form - Schedule L. Taxpayers who did not itemize their deductions could claim an enhanced standard deduction for net disaster relief, sales or excise tax paid on the purchase of a new car purchased after February 16, 2009 and a property-tax deduction of up to $500 ($1,000 for married couples filing jointly). If you missed these tax breaks, file an amended return.

Home Buyer’s credit.

If you bought a house this year and qualify for either the $8,000 first-time home buyer credit or the $6,800 credit for longtime owners who bought another principal residence, you don’t have to wait to file your 2010 tax return as long as you signed a binding contract before July 1. You will need to file Form 5405 and include a copy of your settlement sheet when you file your amended return.

Education Breaks.

If you paid college education tuition and related expenses in 2009, did you pick the best tax break for your situation? For most people the American Opportunity Credit, worth $2,500 per student was the logical choice. But if you had a freshman or sophomore who attended school in one of seven midwestern states that were declared federal disaster areas, you might be eligible for an enhanced Hope Credit up to $3,000.

How to file an amended return.

You have up to 3 years from the date of your return to file an amended return, which means April 15, 2012. Do it now and get your money as soon as possible. Go to irs.gov and download Form 1040X. Explain why you need to amend your return. You don’t have to redo your entire return. Just make the necessary changes and adjust your tax liability accordingly.