Stimulus Checks Tripping Up Taxpayers

The Internal Revenue Service warns that many taxpayers are mistakenly trying to double-dip on last year’s federal tax rebate when they file their tax returns this year — and the IRS is catching the errors.

A sampling of returns shows 15% of early filers made mistakes in the section dealing with the rebate.

The IRS sent taxpayers nearly 119 million rebate checks as part of last year’s economic-stimulus package. Individuals received up to $600 and married couples $1,200, plus $300 per eligible child.

The vast majority of taxpayers are ineligible for any more credits under the package. However, this year’s tax returns include a section for the few taxpayers who are eligible for an additional credit.

Many taxpayers have incorrectly entered the amount of their rebate check on the line that calls for the amount of the credit they are claiming, the IRS said. For most taxpayers, the correct entry for the recovery rebate credit will either be blank or zero.

If you don’t remember how much your stimulus check was, or don’t have a copy of your 2007 return handy, you can find out how much your stimulus check was by going here.

If you’re not sure what the payment was all about, find out here.

The IRS says refunds will be delayed for income-tax filers who erroneously enter the amount of last year’s tax rebate in a space on forms intended for the few eligible for an additional credit.

If you have questions, check with your CPA. If you prepare your own taxes, most tax preparation software does the calculations automatically.