The IRS Refunded Me $800….I Am So Embarrassed
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Below is a guest post from Super Frugalette. She blogs about being elegant in a fiscally contentious way. She shares with us that the IRS caught a faux pas on her tax return. It netted her $800 but wounded her pride.
In the past my last job, before I accepted the position of full time family COO (otherwise known as a stay at home mom), I worked as an accountant. I have done countless 1040s…I have done my own taxes for years. Many of the years had more complicated returns with Schedule E (rental real estate) and one year painstakingly tracking $22K worth of medical expenses for Schedule A.
Thus you can understand how horrified and humbled I was when I received a letter from the IRS stating that I had made an error. The letter told me that I did not include Schedule M and that I would be receiving $800. Schedule M is the “Making Work Pay Credit”. It is refundable tax credit. Most workers have received the benefit of this credit in their paychecks. Thus, their paychecks were larger.
How could I forget Schedule M?
Everyone gets M!
(Well not everyone, but if you make less than $95,000 as a single person or $190,000 as a married couple and you have income, you qualify for the making work pay credit…I am starting to get way too excited about talking about taxes so I will stop…)
I knew everyone got M in 2009. I had forgotten that it continued into 2010 as well.
If I had paid for tax software, Schedule M would have been listed as a form for me to fill out…but no, I *do* taxes…I know it is snobby but it feels so beneath me to pay for tax software and I am a huge fan of freefillableforms. I mean it is FREE. What is better than FREE.?
$800 is better than free.
I wish I could say that I “learned my lesson” and that I will not use freefillableforms again. I will. However, I have new faith in the IRS. They are not just interested in auditing your return but ensuring that you receive your credits too.
So, the lesson learned from this story is do not be afraid to use free tax software. I still got my $800.
FYI – One month after I submitted my return, I received the letter that I had failed to file Schedule M. The IRS said it may take weeks for me to receive a check. The check was next piece of mail that I opened that day. It was right behind the IRS letter in the mailbox. I am thrilled I got a tax refund!
What are some of your oops financial moments? Ever had your money pride wounded?