I feel like an idiot, but if someone can learn from my mistakes, then it is worth it to look like an idiot. I’ve been really stupid about my taxes the past few years. I don’t own a home, no kids, so I have never itemized. I’ve always just filed form 1040-EZ. Well, the past few years, I’ve really taken a tax hit because of winnings (which of course, aren’t really winnings). Last year I paid close to $1,000 to taxes (and the only reason it wasn’t more was because I had taxes taken out of most of my jackpots at the casino). This year it was looking to be around $2,200. I just figured because I had nothing to itemize that I just had to live with it.
WRONG, and I’m sure I’m probably the only one this stupid - but just in case.
You can include state taxes you paid during the year, so for me, that number plus my gambling losses far exceeded the standard deduction amount of $5,800 – so I went from thinking I had to pay $2,200 to practically nothing – which is as it should be, because my losses far exceeded my winnings.
I’m also working with an accountant to recover overpayment from 2009 and 2010.
For a reasonably intelligent woman, sometimes I amaze myself with my own stupidity. In my defense though - 3 years ago, I had to basically take over my father's affairs, and have neglected my own because that is so time consuming.Edited: 10 January 2012, 20:40