I got a letter saying I owe $1,884 on my 2006 return. HELP!?
I agree with two of the items:
1. I pulled some money out of my 401 (k) before retirement and forgot to add it to my return.
2. I forgot to add my interest income on bonds that I cashed.
I don’t agree with these items:
1. IRS says I have unreported wages of $1,188, but my W-2 says that these wages were non-taxable income.
2. I didn’t put my 2005 state refund on my 2006 Federal return, but I don’t think I should have to pay the whole amount since my ex-husband and I divorced in 2006.
3. IRS claims I oversated my student loan interest deduction, but they did not include one of my 1098’s because it is in my maiden name
4. $150 in interest and penalties!
Should I seek professional help or just pay what I agree to and dispute the rest? Is there any way to get out of interest and penalties? I did my taxes online through H&R Block. I’m afraid it will cost me more to hire a tax professional than just pay the darn bill.
Getting a professional will probably help.
I don’t know enough here to say what would happen with item 1. If you have the necessary records you can probably get the value of 2 reduced, but not eliminated. If you can verify with records, you should be able to have item 3 corrected. Number 4, if you get changes to 1-3 you may be able to get the amount reduced.
This sounds like a fairly complex case, since you have name change, marital status change and disputed wages. A professional is the best way to go.
See if you’re eligible for any sort of free help or reduction for having filed electronically through H&R Block.
