| For Immediate Release | For more information contact: |
| March 11, 2002 | Shannon Robinson (651-296- 5989) |
ST. PAUL Rep. Arlon Lindner (R-Corcoran) is advising his constituents to keep their eye out for a very common mistake that many people are making on this year's federal tax forms.
The confusion comes from an additional line on the 2002 tax forms that refers to the federal tax rebates distributed last year. The line specifically asks about "rate reduction credit." It is located at line 47 on the 1040 form, line 30 on the 1040A, and line 7 on the 1040EZ.
"The deadline for people to file their income tax is just a little over a month away," said Rep. Lindner. "I want to make sure my constituents understand the change to this year's tax forms. Filing taxes can be a stressful and confusing experience, but having the proper information can make the tax season a little more bearable."
The federal tax refund that many people received last summer was actually an advance on their 2001 taxes, and should not be considered taxable income. Many people who received these refunds are placing the amount on the "rate reduction credit" line and subtracting that amount from their 2002 refund. Rep. Lindner explains that people don't have to do that.
"If you received either a $300 or $600 federal tax refund last year, leave that line on your tax form blank,"said Lindner. "Only put the amount on the line if you did not receive your check, or if you only received a partial amount of your refund."
Lindner said the most important thing to remember is that "the refund check you got last summer will not reduce your 2001 refund in any way."
The IRS is trying to catch this mistake and correct them for taxpayers, but if you already filed and think you made this mistake, you can file an amended return. For more information on filing your 2001 taxes, the IRS website can be a great tool. Visit them at www.irs.gov. or call 1-800- 829-1040 for assistance.
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