February 16, 2009

Income Tax Help – IRS Expands Its Free Services

By IdeaMan21

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I just read a report that the IRS is finding that people are making errors who have turned in their taxes early due to the misconception of how to hand the Stimulus Checks last year. They claim that up to 15% of the early tax returns have this error on them. The recovery rebate credit is coming back to haunt us. Thank God the Internal Revenue Service is offering Income Tax Help.

It seems that the main problem is coming from those of us who weren’t eligible to receive the Full Stimulus Check or a no check at all (because they didn’t pay enough taxes mainly) and that would then qualify for a rebate credit when they file their 2008 tax return.

IRS Recover Rebate Credit Calculator

Because of this high percentage of errors the IRS is urging taxpayers and tax preparers to double check the eligibility for the rebate credit. The IRS is being kind enough to create a website called the Recovery Rebate Credit Information Center which will include a tool to determine if you are indeed one of the lucky ones. As of this writing it is not ready but they promise (it’s the government though) it will be up and running by the end of February.

Four Tips to Help Taxpayers Avoid Errors On the Recovery Rebate Credit

You May Not Be Eligible for this Credit

The IRS cautions:

“You cannot claim this credit if you have already received the maximum amount of the credit in the form of your Economic Stimulus Payment. So, you cannot claim the credit if:

You received (before any reductions that paid back taxes, etc.) an Economic Stimulus Payment of $600 ($1,200 if married filing jointly) and you have no qualifying children.

You received (before any reductions that paid back taxes, etc.) an Economic Stimulus Payment of $600 ($1,200 if married filing jointly) plus $300 per qualifying child, and you do not have additional qualifying children in 2008.”

So, if you meet either of those conditions, you can’t claim the credit anyway and you’ve just lost your excuse to procrastinate in getting your 2008 federal tax return filed.

IRS Partners Offer Free Tax Help Nationwide

Nearly 12,000 free tax preparation sites will be open nationwide this year as the The Internal Revenue Service (IRS) has expanded its partnerships with nonprofit and community organizations to provide tax preparation services for low-income and elderly taxpayers. The IRS Volunteer Income Tax Assistance (VITA) Program provides free tax help to those who earn less than $42,000. The Tax Counseling for the Elderly (TCE) Program offers free tax help to taxpayers who are 60 and older.

Taxpayers need to bring to the VITA/TCE sites the following items:

Photo identification
Valid Social Security cards for the taxpayer, spouse and dependents
Birth dates for primary, secondary and dependents on the tax return
Current year’s tax package, if received
Wage and earning statement(s) Form W-2, W-2G, 1099-R, from all employers
Interest and dividend statements from banks (Forms 1099)
A copy of last year’s federal and state returns, if available
Bank routing numbers and account numbers for direct deposit
Other relevant information about income and expenses
Total paid for day care
Day care provider’s identifying number

To file taxes electronically on a Married Filing Jointly tax return, both spouses must be present to sign the required forms.

Trained community volunteers can help eligible taxpayers with all special credits, such as the Child Tax Credit or Credit for the Elderly. Also, many sites have language specialists to assist people with limited English skills.

Feed Shark
income tax help
tax returns
federal tax returns
Credit Rebate
Stimulus Check
Turbo Tagger