Can I refile my taxes from a years back?

Question

I believe I was wronged by my tax consultant.I had over $9,500 in out of pocket medical expenses on a $40,000 annual salary

Answer 1

AreJoker is correct.  You can also amend your state return, as a reduction in your federal taxable income will also reduce your state tax.  Check the website for your state department of revenue to get the form.  Its usually called whatever the regular individual form is called with the letter X after it.

Answer 2

Perhaps your tax preparer use standard deductions rather than itemized deductions.  If the standard deductions were greater than the itemized deductions including the medical expenses that would have been the proper approach.  Some folks are confused about standard deduction and the fact that you can not add on individual items (although you will be able to in some cases for 2008) such as your medical expenses.

Answer 3

What year?  How did you file?

Medical; $9500.

Less 7.5% 3000.

Leaves $6500 itemized deduction (assuming these were not cosmetic in nature and the only thing you could itemize).

If this is 2006 and you filed as single, that increases your standard dedcuction from $5150 to $6500, net increase of $1350.  If you were in the 25% tax bracket, that saves you $300-$400.

You also never stated what the deductions were for.

PS, Major news flash (Judy's post made me think of it), there was a new revenue ruling 2008-28, effective for tax years 2005 and later, last week that said for divorced or separated parents, for purposes of medical deductions, the child can count as the dependent of *both* parents.  Eg, dad can claim expenses even if parents are divorced and child is living with mom.

"The Service will treat a child described in the scope section of this revenue procedure of taxpayers within the scope of this revenue procedure as the dependent of both parents under §§ 105(b), 106(a), 132(h)(2)(B), 213(d)(5), 220(d)(2), and 223(d)(2), whether or not the custodial parent releases the claim to the exemption under § 152(e)(2). . . . This revenue procedure is effective August 18, 2008. However, taxpayers may apply this revenue procedure in any taxable year beginning after December 31, 2004, for which the period of limitation on credit or refund under § 6511 has not expired as of August 18, 2008."

Answer 4

Yes you can file an amendment for 2005, and if you have a refund coming, you'll get it.  On $40K salary you couldn't deduct the first $3000 in medical payments, but could deduct the rest, but only if you had enough in other itemized deductions to be above the standard deduction for that year of $10,000 if you filed a joint return or $7300 if you filed as head of household.  If you filed as single, your standard deduction was $5000 so you were definitely above that.

Add up what other itemized deductions you had that year.  If all of your deductions including the $6500 or so you can deduct for medical is above the limit, then file an amendment.

This assumes that your daughter was your dependent for that year.  If not, you can't deduct her medical expenses.

Answer 5

2005, 2006 and 2007 can re refiled and corrected using form 1040X.  Anything older is outside of the statute of limitations.  You should have given us a year.