The 2008 Economic Stimulus Act is like a cousin to the new 2009 Recovery Rebate Credit. Did you know the name changed this year? Usually, a credit will increase the amount of your refund or reduce the amount of taxes you owe. A separate check will not be mailed out this year.
Now, here’s the deal. If you did not receive your economic stimulus check last year or did not receive the full amount you were entitled to, you may still be eligible for the credit.
A lot of errors have been showing up on the early tax returns and it is a mess. The IRS is urging taxpayers and tax preparers to make sure they are properly determining eligibility for the recovery rebate credit before filing.
Now some of you did not receive a payment last year and some of you did. In each case, you may still have a chance to qualify for the recovery rebate credit. I do have to say in all fairness, if you did receive your economic stimulus rebate last year, you will most likely not qualify for the recovery rebate credit on your 2008 tax return.
After viewing the early 2008 income tax returns, the IRS is seeing all sorts of errors like:
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Claiming the credit when you’re not eligible
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Not claiming the proper amount for the recovery rebate credit
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Entering the amount of the Stimulus payment on the line for the Recovery Rebate Credit
Are you confused yet? Why not reduce your stress levels and let the professionals at TurboTax run your numbers through their amazing tax preparation software. We all know how computers manipulate numbers at seemingly the speed of lightening and they don’t make math errors. Wouldn’t you like that peace of mind? Don’t we have enough to worry about?
If you’re anything like me, I want my taxes filed correctly the first time. I do not want to have to re-calculate any of it. I like knowing my tax return is correct and I trust the TurboTax tools for determining my rebate.
If you have errors on your tax return you can expect some pretty big delays. Don’t be one of those 15 %. I’m sure the number will continue to grow as more people send in their 2008 income tax returns. If you did receive a 2008 economic stimulus act payment last year, it is critical that you know the exact amount. That amount will help determine if you are able to obtain the rebate for this year. If you don’t know the exact amount, there are a few ways to find out.
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Call the IRS, You will need to know your filing status, your Social Security number, and how many exemptions you claimed.
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The IRS sent a notice called 1378, the amount is on that notice.
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Go to the IRS website, IRS.gov. They have a tool that can find the exact amount in seconds
If you are using tax software, the amount of the Recovery Rebate Credit will be automatically calculated. Now isn’t that great! If you are using the old paper method, the recovery rebate credit should be reported on Line 70 of Form 1040, Line 42 of Form 1040A, or Line 9 of Form 1040 EZ.
If you’re looking for help or if you have more questions about the 2008 Economic Stimulus Act, Turbo Tax Online has the answers. They also have easy to use tax preparation tools that will make filing your 2008 income taxes a breeze. Do yourself a favor and file the easy way. Answer the questions and let the software do the math. Now how nice is that? Set your mind at ease TODAY!
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