Personal Finance: Timely reminders for tax season

After the financial stress of the last few years, your tax return this year might offer some relief, but it also might deliver some disappointment.

If you were out of a job for part of 2011, you may find yourself able to qualify for lucrative tax credits and deductions you can't normally get. At the same time, however, Uncle Sam will continue to make an unpleasant demand if you were one of the first-time home buyers who used a $7,500 tax credit in 2008 to buy a new home.

People who took that credit in 2008 have to pay it back, said Robin Christian, senior tax analyst for Thomson Reuters. If you were among people who bought a house in 2008 and forgot the obligation, you need to start paying. Your obligation began in the 2010 tax year, and you had 15 years to pay it off.

Various versions of housing credits have been used to encourage people to buy homes since 2008. And the lucky people who used those credits in years after 2008 do not have to repay the money. Sorry, but it's true.

Another surprise for taxpayers this year might be the tax bill coming due for Roth IRAs. People scrambled in 2010 to convert a regular, tax-deductible IRA into a Roth IRA because in that one year they were allowed to spread the taxes they owe over 2011 and 2012. With the passage of time, you might have forgotten, but don't. "You can be sure the IRS is keeping track," Christian said.

Aside from unexpected tax responsibilities, you might be pleasantly surprised by tax reductions you can get because of a low income in 2011. Families should consider:

Low income credit and child tax credit. For people with low incomes and especially those with children, tax time can be a way to get as much as $5,751 back from the government from the earned income tax credit. If you are single, with no children, you could qualify for some credit with an income up to $13,660. If you are married with three or more children, the income cutoff is $49,078. The credit depends on the size of your family and income. If you have children, there's a credit of up to $1,000 per child. It begins to get phased out once a couple's income goes over $110,000 or a single parent's is $75,000.