My wife use to do our taxes ( I helped some but she's the mathematician in the family ) , but now she's got serious health issues and last year was the first year I did ours solo . So of course there was an error .......LOL
She filed for disability almost 3 years ago and by the time the SSA got done dragging there feet and she was approved they ended up back paying her for 13 months that it took to get approved . That plus what they paid her for the rest of last year killed us on our taxes . So I had to claim almost two year of untaxed income that amounted to 36K . Needless to say her lump sum plus what she got paid for the rest of last year killed us on our federal taxes and I ended up paying an additional $4700 on top of the considerable amount of taxes that I paid from working my job .
A couple of weeks after I sent the federal in I was talking to a friend about it , and mention having to pay taxes on her lump sum . That is when I found out that I had made an error on our taxes and had overpaid $1300 .
I was about to go thru the process of re-filing when I got a letter from the IRS telling me that they had caught the error , and they were going to send me the $1300 . They even paid me an additional $8 in interest , which I had to claim this year as income....LOL
I still paid out the butt , but not as bad as I thought it was going to be .
I always figured that with the amount of 1040's they get ever year they just glance at them , but evidently they look at them a little closer than I thought .
Edited by Jlaws, April 15, 2015 - 12:30 AM.