I just had my taxes filed for me by an accountant. Did I get ripped off?

Question

Heres the whole story. I worked in Iowa for half the year and in Wisconsin for the other half. (I moved to Wisconsin half way through the year). I was going to get my taxes done for me at H&R Block but my mother insisted that her friend do them. He claims to be an accountant. This year I was independent. I was a depentant the past few years. I paid in a decent amount of money from my paychecks all year. I usually get back whatever I pay in. Im still in college and nothing has changed, so I thought I would get it all back this year. However, I only recieved about $300 back. He said I had to pay into Iowa because I worked and lived in two states . I think that my Mom might have claimed me so that she could recieve more money or I just got ripped off all the way around. PLEASE HELP!

I am under 24, a full time student, and worked more than I did last year. I just thought that if my mom did claim me, she would get more, and I would get less. Which is what I think might have happened because she is like that. When I confronted her about it, she said that the tax guy (her friend) told her that I had to pay in because of working in two states. Sounded like BS to me so I just want other opinions before I really get into it with my mom. Thanks.

Answer 1

How much your mom would benefit if she claimed you depends on her situation. Are you the only child? If so, she might have been able to receive tax benefits from claiming you.

Here's the deal. The IRS allows a parent to claim their child if a full time student during the year (meaning 5 months of the year) AND under age 24 by 12/31/2006. But there is more to it then just that.

Which state did you claim to be a resident? Most states (and Wisconsin for sure) allow you to claim a credit for taxes paid to another state. You should see your IA taxes paid show up as a credit toward your total Wisconsin tax.

Next year, for certain, she cannot claim you. As of the moment, it is difficult to determine (without more details) if something wasn't done right between both you and your mother's return.

But one big question remains.....on your federal return was the box checked for "claimed as dependent by someone else"?

Contact with questions if you need help!

Answer 2

Can't answer if you got ripped off. Doesn't sound like you did. Besides, all the tax preparer does is plug in the info YOU give them. They don't make anything up. The return is based only on your info.

Did you withhold more last year? Did you make more? Did you have less deductions this year? How did you file as "independent" when there is no such thing - filed as "single?"

You would not be better off having your mom claim you. She can only claim you if you are a full time student, under 24, provided more than half your support and didn't make very much.

You sound like your return was complicated because of the "multi-state" issues.

Answer 3

If you are a full-time student under 24 your income is ignored in deciding if you are a dependent. Also being away at school full-time means that, for tax purposes, you live with your parents. If you were in school for at least part of five calendar months during 2006 you cannot have your own personal exemption.

Did your earnings go above $5,150 last year? Were they below that level (roughly) in 2005? If so, that will explain your situation.

Was the $300 only your federal refund? If so, that has nothing to do with your state position.

See if you can get half an hour with a CPA to review your returns. You may even get that half hour free. I know my boss would do that for anyone who walks in the door in your situation, no matter how busy he is.

Answer 4

Do you still have your tax paper that he fill out for you. Well you need to fill out yourself and compare them. If you suppose to get more money. Talk to IRS and find out what happen all rest of your money. If your account took some without your permisson then you need to report this. I