If you thought it was daunting to file a federal tax return last year, this year's filing season will give you the willies.
Congress passed five major tax bills in 2008, making about 500 changes affecting parents, homeowners, philanthropists and disaster victims, among others. Half a dozen new tax breaks went into effect; some can be confusing.
Here are some things to keep in mind as you deal with your taxes:
Got stimulus?
The most widely misunderstood new tax break is the recovery rebate credit, according to the Internal Revenue Service. That's because most people received an economic stimulus payment last year as an "advance" on their 2008 taxes that was calculated based on their 2007 income.
But if you didn't get that rebate last year -- by check or by direct deposit into your bank account -- or if you didn't get the full amount, you might qualify for a rebate credit this year if one or more of these situations describes you:
* You were claimed as a dependent on someone else's tax return in 2007 but were on your own in 2008.
* You had a significant change in 2008 income.
* You had a child in 2008, which could qualify you for an additional $300 credit.
* You didn't have a valid Social Security number in 2007 but got one in 2008.
* You didn't file a 2007 tax return but earned money in 2008.
If one of those five factors pertains to you, fill out the 29-line work sheet on pages 62 and 63 of the instruction booklet that comes with the new Form 1040 to see how much you get. You enter the result on line 70 of this year's 1040, where you can claim your adjusted credit amount.
Keep in mind that the credit is phased out starting at incomes of $75,000 for individuals and $150,000 for couples. And you can't get a rebate at all if you have no qualifying income -- mainly wages or Social Security benefits.
If you can't remember whether you got a rebate last year, or how much it was, you can find out on the IRS website. Go to www.irs.gov and click on the "How Much Was My Stimulus Payment?" link on the home page. You'll need to plug in a few pieces of information including your Social Security number. Enter the result on line 28 of the rebate credit work sheet.
Property tax aid
