Sunday, April 09, 2006

Check that Tax Return!

Today I got my tax assessment letter from the IRS. Now I know why the refund they paid me was $1250.00 less than I expected. I forgot to fill in line 23 of my Schedule A! Line 23 asks you to add together lines 20 through 22. I did, but forgot to fill in the box. I used the number I calculated in computing line 26 which is where you deduct line 25 from line 23. As my line 23 had zero on it their computer told them my line 26 should have zero too. Instead I had $4981.04. As a result they raised my taxable income by that amount and taxed me $1250.00 more. I will phone the IRS and explain it to them. So, those of you out there who haven't yet filed - check all the relevant boxes are filled in and if the IRS changes your refund, don't assume they are right! I will recognize the extra $1250.00 in my net worth immediately.

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