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Newspaper
Baytown Sun
Location
Baytown, Texas, United States of America
Date
Feb 17, 2009
Page
7
A concise guide lists tax credits and benefits for disabled taxpayers and guardians. Key items include the Earned Income Tax Credit, the Credit for the Elderly or Disabled, Child or Dependent Care Credit, Impairment-Related Work Expenses, impact on the standard deduction for the legally blind, and exclusions for certain disability payments from gross income.
The IRS notes that nearly 119 million stimulus payments were sent last year and guides taxpayers on locating their amount to claim the recovery rebate credit. Steps include checking Notice 1378, using IRS.gov tools, calling 1 866 234 2942, and entering figures on Form lines with careful handling to avoid errors. Most taxpayers will leave the credit blank or zero unless due.
Education tax credits reduce federal tax for higher education costs. The Hope Credit covers up to 1800 dollars per eligible student per year for the first two years of post secondary study, with higher amounts in Midwestern disaster areas. The Lifetime Learning Credit offers 20 percent of the first ten thousand dollars of tuition and fees, up to two thousand dollars per year, with higher caps in disaster areas. Both credits apply to different levels and types of programs and have eligibility rules.
If you are not required to file you may still want to file to recover any federal income tax withheld or prior year overpayments. You might also qualify for a Recovery Rebate Credit if you did not receive the 2008 stimulus. The Earned Income Tax Credit could yield a refundable refund if you worked but earned little.
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