The Internal Revenue Service (IRS) is warning taxpayers about mistakes in the section of this year’s tax returns that deals with last year’s federal tax rebate. According to MSN, 15 percent of early filers incorrectly entered the amount of their rebate check on the line that calls for the amount of the credit they are claiming.
The errors were found using IRS software that checks for mathematical errors and were corrected by the IRS. However, the IRS urges taxpayers to avoid mistakes or risk delays on their returns.
Most taxpayers are ineligible for any more credits under the package and, therefore, the correct entry for the recovery rebate credit will either be blank or zero.
Those who may be eligible for additional rebates are individuals:
- Whose financial situation changed dramatically from 2007 to 2008 and income fell below the thresholds of eligibility (phase-out begins at $75,000 for single filers and $150,000 for joint), you could file based on your 2008 income.
- Who did not file a 2007 tax return.
- Whose family gained an additional qualifying child in 2008.
- Who were claimed as a dependent on someone else’s return in 2007 but cannot be claimed as dependent in 2008.
If there is any question as to the amount that should be reported, the IRS suggests the taxpayer or preparer enter a zero on the appropriate line, and allow the IRS to determine whether a recovery rebate credit is due.
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