What is the process to file my taxes if I am late and the IRS owes me for paying in too many taxes?

Question

I am a 23 year old male, that will file at independent. I did not file my taxes for year 04 and 05. I filed for extensions in those years, but I am obviously overdue on the extension. The IRS would have approximately owed me $1500 for both years. I have capital gains in both years (1099) and I will file for the Hope Tax Credit in one year and the Deduction (I forget the name) in another.

1. Can I choose the year I file the Hope Tax Credit? I know that I can select two years, but I want to choose 05 because I have a larger payment to school.

2. What is the quickest way to receive my refund?

Answer 1

For 2004 tax year, you have until 4/15/2008 to file for a refund although I would not recommend waiting that long.

If your parents or someone else can claim you as dependent, then you cannot claim yourself.

The year in which you can claim the Hope Credit cannot be swapped around. If you are eligible, then take it. It is better than the others. You must be a first or second year college student (only the very first time). You must be pursuing a degree or credential. For 2004 and 2005, the maximum credit is $2,000. Dollar for dollar up to $1000 and 50 cents for every dollar spent after $1,000 and up to $2,000. Basically spent monies are for tuition mostly. Rarely books. For 2006, this rises to $1,650 maximum per eligible student.

The Lifetime Learning Credit is for any classes to acquire or improve job skills (a degree or certificate is good too). This is anytime after the first 2 years. Maximum is $2,000 per return. The credit is good for 20% of monies spent for tuition. So this means maximum money spent can be up to $10,000. 20% of $10,000 yields the maximum credit of $2,000.

For quicker refund, fill in the section with bank account and routing number and the IRS will direct deposit the refund to you. The other, very expensive, alternative is to get a Refund Anticipation Loan. File with a tax preparer who can file electronically for you and apply for the instant loan.

If your income is low enough, then you can qualify to get free tax return help and filing. Go to IRS.gov and do it yourself online or search for VITA and somebody will do it for you.

Answer 2

If the IRS owes you, there is no such thing as filing late and late penalties. That only applies if you owe. However, make sure that you do so before 3 years passes by. After 3 years, the IRS doesn't have to refund your dollars. If I were you I'd file electronically on your own, I believe that the IRS allows this for individuals (however I never do so, I go the snail mail way). The rapid refund people generally screw you, you end up paying a decent amount of interest. How this works is they give you your money (less than your refund amount) right there but then you sign over your return to them.

Answer 3

You can choose to take the Hope Credit in any year such that on January 1 you had not completed the first two years of college. So, there are three years to choose from, take those years that give you the most money.

You will be required to mail in your 2004 and 2005 returns. It will take some time to get your refunds, perhaps 2 or 3 months. The IRS will pay you interest on the refunded amount.

Answer 4

Since you are expecting a refund for those years, you don't nned to worry about being penalized.

1. Yes, you can choose when to take the Hope Credit.

2. File as early as possible. For '04 and '05, try to get those file now since there are not many people that will file their '06 taxes.

You can get your refund sooner if you go through H&R Block or Jackson Hewitt and get a Refund Anticipation Loan. However, the fees are so high for those, I wouldn't recommend it.

Answer 5

Just file - since you don't owe anything, you shouldn't be penalized. You have three years after the original due date to file and still get your refund, so you're OK there.

On the Hope Credit, you don't get to choose the two years, it's only good for the first two years of post-secondary education.

Quickest way to receive your refund is to have it directly deposited to your bank account. For the current year, e-filing speeds it up considerably. You can't e-file for the years whose deadline has already passed.

Answer 6

You have to be named willie nelson to go two years without filing.
If you were willie nelson you could not only skip those two years (owing 35 million) but end up paying only 9 million or so, all your friends would buy your stuff being auctioned off and give it back to you. your Friends could hold music concerts and not charge you for it. you collect everything. You can't end up on the ed Bradley he's dead so you can go on the Oprah show and talk of your pot smoking days which got you in dutch with the feds. Plus you could even sell enough pot to pay your way out. That is if you were willie nelson and you ain't.
Now that we know you are evidently not willie nelson be warned that the IRS has no pity or sense of justice in your case. you may already owe more than willie regardless of what you think your refund is it isn't. and your penalties are growing daily.
I would recommend either filing and paying or leaving the country, or suicide, or taking up country music so you can moan the blues when they haul your *** off to jail.

Answer 7

If you do not owe any tax you have up to three years to file a return. There is only a penalty and interest when you owe money. You can't get a refund for anything over three years old.

Go to http://www.irs.gov to get answers to your other questions.