Q: As always, I mailed my 2003 tax return as soon as possible. But soon after I mailed it, my broker sent me a corrected Form 1099 that restated dividend income. Do I have to file an amended return, even though it was the brokerage firm’s error? K.R., Crawfordsville, Ind.
The IRS is holding more than $2.5 billion in unclaimed refunds for 2 million people who failed to file tax returns for the 2000 tax year.
Looks like you’ll pay for the financial sins of Martha Stewart and the rest of her corporate-scandal cohorts.
Relax; take an automatic extension.
Buy extra time for hardship situations.
Postpone payments when living abroad.
Military taxpayers earn extra time to file.
Section 529 plans are the best way to save for college. Withdrawals are totally free from federal income taxes. But if you’ve been dragging your feet about launching a Section 529 plan, you have new incentive to act quickly
Q. I set up a Roth IRA in late 1999. I’m turning 59 in May, so I’m wondering when I can start taking tax-free distributions from the Roth. Do I have to wait until the account has been open exactly five years or can I begin distributions any time this year?
President Bush is once again pushing Congress to radically reshape America’s savings plan system, creating three new tax-preferred investment accounts.
Q: I invested in a variable annuity when I was 39. Now that I’m 52, I want to begin withdrawals to help pay my daughter’s college expenses. Will I have to pay an early withdrawal penalty? D.T., Raleigh, N.C.
The numbers are deceiving: IRS gum-shoes audited only 0.57 percent of individual tax returns in fiscal year 2002. The rate isn’t much higher (only 1.45 percent) for Schedule C filers with incomes above $100,000.
Double your tax credits for children.
Go ‘back to school’ for extra credit.
Clean up on your tax return.
Make the credit child’s play.