Last years rebates are causing a lot of confusion and grief for tax filers this year. Last week the IRS said about one in seven of returns already filed have an error involving last year's rebate. Some people who recieved their rebate are mistakenly claiming the credit intended for those who didn't. So what do you do to avoid mistakes on your return? As always, the Hitman's got the scoop.
First of all most people who received rebates last year won't qualify for the recovery rebate credit, sorry for the bad news.
Rebate Credit Qualifiers: Here are the most common reason why someone might qualify for the recovery rebate credit this year.
-Financial situation changed dramatically from 2007 to 2008.
-A 2007 Tax Return was not filed
-Gained a qualifying child in 2008.
-The individual was claimed as a dependent on someone else's Tax Return in 2007 but cannot be claimed as a dependent for 2008.
Remember that you can qualify based on either 2007 or 2008 - use income level or number of dependents, whichever works out best for you.