Action 4 News answers your tax questions
Fri, 16 Jan 2009 05:39:18 GMT —
It's tax season again and people are rushing to get their tax returns complete.
Liberty Tax Service in Harlingen has had people constantly calling and coming in inquiring about this year's income tax return.
The most common question: will they have to pay back their stimulus check? But not to worry.
"We're going to ask you how much did you receive in your stimulus check from last year. And not to scare anybody off, that's just to find out if you received full benefits, said David Perez / liberty tax service.
If you didn't get full benefits you are eligible to get them with your tax return.
"You can expect to see a lot more tax credits given, said Mr. Perez.
Among those, a first time homebuyers credit with a maximum return of $7,500. It operates like an interest free loan because it must be repaid over a 15- year period.
"If you just bought a new home its just actually to stimulate that because what happens is that most people pay that much closing cost that's kind of like a reimbursement, said Mr. Perez.
And these credits are what's driving many people to tax offices early this year.
David Perez says filing early is also beneficial for those who will owe money to the IRS.
"It's actually better to file early so you can work out a payment plan with the IRS, said Mr. Perez.
If you owe Uncle Sam, interest and penalties will start to accrue after April 15th.