It's Your Money: Tax review - WKOW 27: Madison, WI Breaking News, Weather and Sports

It's Your Money: Tax review


MADISON (WKOW) -- For many people these days, finding a little extra cash can make a big difference for the family budget.   

In this It's Your Money report, where you might have a few dollars waiting for you...  

It involves taking a little time to look back on tax returns from recent years.

Every year millions of Americans make mistakes that cost them money on their income taxes.

The IRS won't find the mistakes for you, but they will send you money when you can prove the error.

What you're looking for are deductions and credits you may have missed.

Michael Gutter, UW financial specialist, says, "You forgot to take a credit you we're eligible for, including the earned income tax credit, which a lot of people aren't aware they should take."

Gutter says the IRS allows you to go back three years in your search for costly mistakes.

Once you find them, you'll need to fill out a form 1040-x.

Gutter says, "it's amending what I did on a previous year on my tax return." 744))

And Gutter says you can file that form 1040-x anytime of the year.

Along with the earned income tax credit, other commonly-missed credits and deductions include extended deductions for sales tax, higher education tutition and fees, and energy tax credits for homeowners.

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