Most of us are inclined to file our tax returns, put away the
papers, and forget about them.
But sometimes, reviewing your old tax forms can be profitable.
It’s easy to have missed one or two deductions during the tax
season rush, especially with the many recent changes in the
law.
Most of us are inclined to file our tax returns, put away the papers, and forget about them.
But sometimes, reviewing your old tax forms can be profitable. It’s easy to have missed one or two deductions during the tax season rush, especially with the many recent changes in the law.
Fortunately, you can amend your returns and get your money back when you’ve overpaid.
Generally, you can amend a return any time up to three years after the filing date. For example, a return for the year 2000 that was due April 15, 2001, can be amended up until April 15, 2004.
If reviewing your taxes for the past three years turns up even one unclaimed deduction, it can be well worth the effort to file an amended return. A review should include both a second look at the usual deductions and a cross-check of the recent rule changes. For example, here are a few of the newer refund opportunities:
– Some weight-loss expenses are now deductible. Fees to join a weight-loss group and attend meetings on your doctor’s advice may qualify as medical expenses if you’re diagnosed with a specific disease. (Note: Obesity is considered a disease.)
– Fees for stop-smoking programs also may qualify as deductible medical expenses even without a prescription.
– A 2002 law allows an additional 30 percent depreciation deduction for new business equipment (including automobiles) put into service after September 10, 2001.
– Business operating losses for 2001 or 2002 may be carried back five years to offset earlier profits.
Kerry Lorincz is a CPA and a partner with the accounting and business consulting firm of Bianchi, Lorincz & Company located in downtown Hollister.
