ShareThisTaxpayers -- and tax preparers -- are being urged by the IRS to get their math right when figuring this year's federal "recovery rebate" tax credit. A "higher-than-normal" error rate is causing delays in processing the new tax credit, which is a catch-up for those who missed out on last year's federal stimulus payments.
"We're trying to stem the tide so folks can get their (rebate) money as quickly as possible," said IRS spokesman Jesse Weller.
For those who qualify, the so-called recovery rebate is $600 for individuals or $1,200 for a couple filing jointly, plus $300 for each qualifying child. Weller said about 15 percent of federal returns claiming the new tax credit have had errors, which can delay getting a refund check by a week or more. Weller said there is no truth to rumors that rebate errors are causing three- to four-month delays in processing refunds.
Those who received the maximum stimulus payment in 2008 are probably not entitled to a recovery rebate credit. But you can qualify if you: did not receive a stimulus payment last year; did not receive the maximum stimulus payment because your income was too high or too low; or had a qualifying child in 2008.
To avoid errors when claiming a recovery rebate, the IRS recommends: List the exact stimulus payment amount you received last year, if any. The amount can be found on IRS Notice 1378 (mailed last year), on the IRS Web site (www.irs.gov, "How Much Was My 2008 Stimulus Payment") or by calling the IRS toll-free hotline, (866) 234-2942. To use the phone or Web tool, you'll need your 2007 filing status, Social Security number, and the number of exemptions claimed.
When figuring your credit, use the recovery rebate worksheet in your 2008 tax packet. The IRS Web site also has answers to questions about stimulus payments and the recovery rebate.
(E-mail Claudia Buck at cbuck(at)sacbee.com)
(Distributed by Scripps Howard News Service, www.scrippsnews.com.)
Must credit Sacramento Bee
