Tax Tips

Theresa Runyan shared the following content from some IRS e-mails she received. If you need more info, go to http://www.irs.gov/.

• If you have access to a computer and the Internet you may be eligible to prepare and file your 2008 federal tax return electronically — for free. Free File is an easy way to file your taxes and get your refund in half the time. Filing electronically is fast, accurate and secure. Free File, a form of e-file, is a free federal tax preparation and electronic filing program for eligible taxpayers developed through a partnership between the IRS and the Free File Alliance. The Alliance is a group of private-sector tax software companies. Since Free File’s debut in 2003, a total of more than 24 million returns have been prepared and e-filed through the program. Free File offers two options. The first, “full service” Free File includes 20 different software options that can assist taxpayers with an Adjusted Gross Income of $56,000 or less in 2008 to e-file their federal tax returns for free. That means 70 percent of all taxpayers can take advantage of tax software that will help them complete their returns through the Free File program. Three companies are offering their products in Spanish. This year, the IRS and its partners are offering a new option, Free File Fillable Forms, which opens up Free File to virtually everyone, even those whose incomes exceed $56,000.
• Most taxpayers who received the economic stimulus payment last year will not be able to claim the Recovery Rebate Credit on their 2008 federal income tax returns. A small number of taxpayers who did not receive the full economic stimulus payment last year may be eligible to claim the Recovery Rebate Credit on their 2008 federal income tax return. Figuring the Recovery Rebate Credit incorrectly or entering inaccurate information will delay the processing of your tax return and any refund due. You do not have to pay back your Stimulus Payment and the payment is not taxable. Less than an estimated 3 percent of taxpayers are eligible. The vast majority of taxpayers are not eligible to receive the Recovery Rebate Credit. Did you have a major life change? If so, you may be eligible to claim the Recovery Rebate Credit. Some of the major factors that could qualify you for the Recovery Rebate Credit include: your financial situation changed dramatically from 2007 to 2008, you did not file a 2007 tax return, your family gained an additional qualifying child in 2008, you were claimed as a dependent on someone else’s return in 2007, but cannot be claimed as dependent by someone else in 2008 and any Recovery Rebate Credit amount will be included in your refund. The IRS will figure the credit for you and include it in your refund or put it toward any taxes owed.