Rebates cause tax confusion

The IRS has received more than 1 million tax returns containing errors related to the tax-rebate checks sent out last year.

The most frequent mistakes seen by the Internal Revenue Service include:

Taxpayers who enter the full amount on the line when it should be left blank because they already received the full amount.

Dependents who claim the credit. Only those who were dependents in 2000 but not in 2001 can qualify for the credit. A worksheet in the instructions is available to determine eligibility.

Taxpayers who leave the line blank even though they qualify for the credit.

Figuring the credit incorrectly.

Information on how to properly handle the credit is available online at www.irs.gov, in the instructions with tax forms and by calling the IRS at (800) 829-1040. The Douglas County Senior Center, 745 Vt., provides help to seniors and low-income families from 1 p.m. to 4 p.m. Tuesdays and Thursdays through April 11.

Sue Himes, a volunteer, above left, helped Julia Christie, Lawrence, prepare her taxes Thursday at the center.

Economy: Job report signals recovery

A key gauge of the number of Americans losing their jobs fell to its lowest level in six months, a sign that the country may be pulling out of a recession.

The average number of newly laid off workers during the last four weeks sank to a seasonally adjusted 376,000 last week, the Labor Department reported Thursday.

Because the department’s four-week moving average of new claims smoothes out week-to-week fluctuations, economists consider it a good barometer of labor market activity.

The latest jobless figures along with other recent economic data “say that the economy has turned a corner and is recovering. The only issue is the strength of that recovery,” said economist Clifford Waldman of Waldman Associates.

Computers: Dell posts profit increase

Dell Computer Corp. announced a 5 percent increase in fourth-quarter profits, matching Wall Street expectations despite a decline in sales from a year earlier.

Dell, the largest maker of personal computers, said Thursday that it earned $456 million, or 17 cents per share, compared with a profit of $434 million, or 16 cents per share, in the year-ago quarter.

The results were in line with the consensus of analysts surveyed by Thomson Financial/First Call. Dell had raised earnings expectations last month, saying direct sales to consumers the company also sells desktop units and other equipment to businesses rose 50 percent over the previous quarter.

Still, total revenue for the quarter that ended Feb. 1 fell 7 percent to $8.06 billion from $8.67 billion a year ago.

Aviation: Air Midwest cuts flights

Air Midwest Airlines will discontinue its three daily flights between Lincoln, Neb., and Kansas City, Mo., but Kansas City’s airport manager did not believe the move will significantly affect local travelers.

The airline, which operates as US Airways Express, will end the route after Saturday, spokesman David Castlebetter said. The company that owns Air Midwest, Mesa Air Group, cited a need to return its leased 19-seat turboprop aircraft and higher operating costs as reasons for ending the route.

US Airways Express has flown between Lincoln and Kansas City for more than a decade.