It's Your Money

Mar 29, 2011 4:58 PM by Andy Koen

Procrastination may pay for some unemployed

The Colorado Department of Labor and Employment says it miscalculated the income figures on tax forms mailed to around 12,000 people receiving unemployment benefits in our state.

The difference is net gain of about $300 for each person. Spokeswoman Cher Haavind says the error came up as a result of the multiple extensions of unemployment benefits approved by Congress last year beyond the standard 26 week period.

She says the state has since mailed taxpayers corrected 1099G tax forms and called them directly to notify them of the error.

The mistake should not affect those taxpayers who have not yet filed their tax returns. But a local accounting office says if any of those people have already filed their taxes, then they will now have to send in an amended return which can cost money.

"Most preparers are going to charge about $100 to prepare an amended return," said Cheryl Solze, CPA with Stockman, Kast and Ryan. "A taxpayer would need to look at, is it worth it you know to have an amended return prepared?"

However, Haavind says the state considered the possibility that some of the 12,000 had already filed their taxes.

"We included the form that is required to file the amended return and we also provided them with a list of free to low cost tax preparation resources."

The 1040X, which is required to file an amended return, must be physically mailed in. It can't be filed electronically.

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