These common errors can be avoided, regardless of whether you use software or complete them yourself.

Credit Recovery Rebate

According to the IRS, nearly 15% of returns contain errors in reporting 2008 federal stimulus payments. Errors may result in higher taxes, lower refunds, rejection of returns, or delayed refunds.

The Recovery Rebate Credit will only be available to 3 percent of taxpayers. They were either not issued a check or had their family circumstances change. Credits can be applied to any refund or owing amount.

All taxpayers should know how much they are receiving in stimulus payments. Visit the Recovery Rebate Credit Information Center to view your Notice 1378.

Earned income tax credit (EITC).

25% of people who qualify do not claim the EITC. This means they could be out $4,824. To qualify, you must have:

– A filing status for single, married filing together, head of household, or qualifying widow.

– Your spouse and children who are eligible for Social Security must have one.

Investing income of less than $2,950

– Earned Income and Adjusted Gross Income less than:

1) $38,646 (41,646 for married filing jointly) with at least two qualifying children

2) $33,995 ($36.995 married filing jointly) for one qualifying child

3) $12.800 ($15.880 for married filing jointly) without any qualifying children.

Not E-filing

E-filing software detects math errors and missing information. This means that the efile error rate is less than 20 percent for paper returns. Direct deposit via e-filing can result in a refund within eight days.

E-filing requires either your 2007 adjusted Gross Income or 2007 Self Select PIN. You can find either your 2007 adjusted gross income or self-selected PIN by calling the IRS at 1-800-829-1040.

Claim Nontaxable Income

These are non-taxable income that is in addition to the payment for economic stimulus:

Contributions to 401(k).

Pre-tax Health Insurance

Pre-tax childcare

– Social Security benefits

– Child Support Payments

– Gifts/bequests/inheritances

– Workers’ compensation benefits

Further information can be found at www.IRS.govTaxACT is a great tool to avoid making these errors. Visit for details.