Short but sweet tax nuggets for Small Biz Owner and/or Self-Employed Person, each morsel serving up a specific tax reduction strategy guaranteed to tickle your monetary taste-buds.

The U.S. Tax Code is so big, there's only one way to digest it: one little nibble at a time.

Just like a piece of candy, one small bite of tax knowledge can give you one very delicious deduction!

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Tax Tidbit #2: How To Get A $1,000 Refund By Filing An Amended Tax Return

-- by Wayne M. Davies

Copyright 2003 Wayne M. Davies Inc.

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Aren't you glad another Tax Season is over?

Ah, yes -- another tax return filed, another tax return "in books."

Well, I've got a pleasant surprise for you.

Did you know you can actually get a refund for a return that you already filed?

Yep, it's true.

If you think you forgot a deduction on a previously filed return, you have three years to tell IRS about it and receive a refund.

Here's how it works: You can file an amended return up to three years after due date of return in question.

So, for Year 2002 returns due April 15, 2003 -- you have until April 15, 2006 to file a correction.

For Year 2001 returns due April 15, 2002 -- you have until April 15, 2005 to file a correction.

And for Year 2000 returns due April 15, 2001 -- you have until April 15, 2004 to file a correction.

Not starting a business with enough cash, known technically as being "undercapitalized", is probably second only to not researching your business concept as a major cause of small business failure. This outcome is usually result of inadequate advance planning during pre-launch phase. First and foremost you must estimate what your family expenses are and how you will assure that your business income is sufficient to pay them. You should sit down with your family and honestly discuss minimum amount of money household must have each month to provide security. Ask each member of family to offer one or two areas where some expense can be reduced.

In addition to knowing your living costs, you must also be brutally honest about your current debt situation. During 1990's many families found themselves taking on increased debt in order to just get by. If your family is one of them, you should be realistic about your ability to take on more financial responsibility. New businesses almost always require more money to keep them running than new owners estimate before starting. Remember: every dollar you must pay each month for credit card payments is a dollar not available to invest in marketing your new company.

To help you calculate your current family financial situation you should create a worksheet, which I call: My Current Financial Situation. Listed below are categories to include. Some research among your household financial records may be required.

> Family Budget

Break your household expenses down into two groups: