More Myths

From the 4/18/08 article in USA Today, Myth 7: Because I'm getting a tax rebate this year, my 2008 tax bill will be higher.

We have covered the stimulus checks coming out in early May to those who have filed their 2007 tax returns already. These rebates are credits based on your 2008 taxes but issued based on 2007 tax knowledge. The idea being to get the $ into your pockets now. If you're due a larger credit, you will claim it on your 2008 tax return. If your rebate was too large, good for you. You will not be asked to give it back. Bottom line: the rebate will not be treated as income when you file your '08 tax returns.

Myth 8: E-filing your taxes makes it more likely you'll be audited.

The chance of an audit are equal for paper filers and e-filers. The plus with e-filing is that the software will not make math errors that pencil and paper returns may have. The software is also likely to help you remember to include things that may be overlooked otherwise.

'til later