Hurricane Katrina

[MomIsWorried]

Another frustrating return in my office yesterday ...

A woman came in to file taxes ... MFJ status... her husband spent time in Mississippi last year doing work on power lines and such (he works for the electric company in our state).

The woman stated to my preparer that another couple she knows filed a special paper for working hurricane relief, and that they got back a little over $10,000 on their return.

I have researched this, both at the IRS site and at my company website, and I can't find anything about relief workers getting extra money back on their tax returns ... the only thing I can find is for those who housed Katrina victims.

Anyone know what this woman is talking about?

 

[LdiJ]

Another frustrating return in my office yesterday ...

A woman came in to file taxes ... MFJ status... her husband spent time in Mississippi last year doing work on power lines and such (he works for the electric company in our state).

The woman stated to my preparer that another couple she knows filed a special paper for working hurricane relief, and that they got back a little over $10,000 on their return.

I have researched this, both at the IRS site and at my company website, and I can't find anything about relief workers getting extra money back on their tax returns ... the only thing I can find is for those who housed Katrina victims.

Anyone know what this woman is talking about?

If the work he did fell in the catagory of charitable work there can be some significant tax benefits. Other than that, I don't know what it could be. Maybe someone else does.

 

[Snipes5]

I would politely tell the client that there are several reasons why someone might get that much money back on a return. Some of them of course include, overwithholding, having lots of kids, etc.

If you can't find anything, it is also possible you are being told a fish story... you know, "My friend used Turbo Tax and got a refund THIS BIG, blah blah blah."

I will check into this at work. We have a QC department that researches things like this.

Snipes

 

[ablessin]

And I am sure if there was a "special form" - everyone who is and was working clean up relief would know about it.

Stuff like that does not stay a secret for long!!!!!

I'll be interested in what Snipes finds out.

 

[Snipes5]

There are some incentives, but most of them involve the taxable nature of mileage reimbursement. Such a think is not likely to result in a $10,000 refund.

Here's a link to the KETRA/GOZA pub:

http://www.irs.gov/pub/irs-pdf/p4492.pdf

Snipes

 

[MomIsWorried]

Thanks all~

I ended up calling a tax office in Mississippi today ... and was told by the office manager that the only things she knows about are for the housing, an extension to file, and the mileage thing.