As a person who owns a business, I was forced to exit the “file taxes as early as possible” lifestyle years ago. I vaguely remember anxiously awaiting my W2 so I could file my 1040 and receive my tax return as quickly as possible. Those days are long gone (as are my refunds!), as my taxes become more complicated each year. But, I have learned that filing early isn't all that grand anymore, especially when changes in tax laws are so frequent.

This week I'll pass on a few tips about your tax returns for 2008 that I discovered while searching for answers for my own tax issues. Hopefully, these tips will help you avoid mistakes and learn about some credits and tax deductions that you might have missed. Each tip has a link that will take you to the IRS page, publication or website, where you can learn more about each item.

1. Stimulus Rebate: If you received a stimulus rebate this past year, you do not need to enter that amount on your tax return. If you use tax software, however, it may ask for that amount. In the end, though, that stimulus payment did not add to the amount of income you made last year. If you're not sure about the amount you received, use the IRS tool to recover that information.
   
   
2. “Recover Rebate Credit”: This is a special benefit available ONLY for millions of people who didn't receive the full stimulus payment last year but now are eligible for some or all of the unpaid portion because of a change in circumstances. However, most taxpayers who received the economic stimulus payment last year will not qualify for the recovery rebate credit on their 2008 federal income tax return.
   
   
3. First-Time Homebuyers: If you purchase a home for the first time between April 9 2008 and June 30, 2009, you can take advantage of a limited-time tax credit. This credit is more like an interest-free loan than an actual windfall, because it must be repaid over a 15-year period. For example, an eligible taxpayer who buys a home today and properly claims the maximum available credit of $7,500 on his or her 2008 federal income tax return must begin repaying the credit by including one-fifteenth of this amount, or $500, as an additional tax on his or her 2010 return.
   
   
4. Home Equity Loans: A home equity or other loan taken out for reasons other than to buy, build, or substantially improve your home, such as to pay off personal debts may qualify as home equity debt anyway. However, you would need to itemize your taxes and use Form 1040, Schedule A. Follow the link to download information about this deduction.
   
   
5. Tuition and Fees Deduction: A taxpayer cannot take both the tuition and fees deduction and education credits (Hope & Lifetime Learning Credits) for the same student in the same year. However, you may be able to deduct qualified tuition and required enrollment fees up to $4,000 that you pay for yourself, your spouse, or a dependent – and, you do not need to itemize to take this deduction. To determine whether your expenses are qualified, refer to Tax Benefits for Education, Publication 970 [PDF], which also describes other education-related tax benefits.
   
   
6. Earned Income Tax Credit: The EITC is a tax credit for people who work but do not earn high incomes. Many taxpayers who qualify for EITC may also be eligible for free tax preparation and electronic filing by participating tax professionals and volunteers. For Tax Year 2008, you must have adjusted gross income of less than: $38,646 ($41,646 if married filing jointly) with two or more qualifying children; $33,995 ($36,995 if married filing jointly) with one qualifying child; $12,880 ($15,880 if married filing jointly) with no qualifying children.
   
   
7. Lose Your Job?: Unemployment compensation you received under the unemployment compensation laws of the United States or of a state must be included in your income. It is taxable income. If you received unemployment compensation, you should receive Form 1099-G showing the amount you were paid and any federal income tax you elected to have withheld. For more information, see Publication 525 [PDF], Taxable and Nontaxable Income. Public assistance and food stamps, by the way, are not taxable.
   
   
8. Withdrawals from IRA: Generally, early withdrawal from an Individual Retirement Account (IRA) prior to age 591/2 is subject to being included in gross income plus a ten-percent additional tax penalty. There are exceptions to that penalty, such as using IRA funds to pay your medical insurance premium after a job loss. For more information, see Publication 590, Individual Retirement Accounts [PDF].
   
   
9. You Lost Money in Your 401k: Generally, you can not claim a capital gains loss on your retirement accounts that already are receiving favorable tax treatment. The only time you would have a loss is when you receive a distribution that had previously been taxed. For more information, see Publication 575 [PDF], Pension and Annuity Income.
   
   
10. What if You Can't Resolve Your Tax Issues?: Contact TAS (Taxpayer Advocate Service) by calling the TAS toll-free case  line at 1-877-777-4778 or TTY/TDD 1-800-829-4059 to determine whether you are eligible for assistance. You can also call or write to your local taxpayer advocate, whose phone number and address are listed in your local telephone directory and in Publication 1546 [PDF], Taxpayer Advocate Service – Your Voice at the IRS in many languages. For more information, go to http://www.irs.gov/advocate.