By George Yaksick, Washington Staff Writer
If you plan to receive a tax rebate from the federal government later this year, you need to file your 2007 income tax return on time. This includes those people receiving Social Security or veterans' benefits who, in most cases, don't normally have to file an income tax return. According to the IRS, it's that simple--no return, no rebate, even if you are eligible for the rebate.
This could be problematic for these beneficiaries, since they usually do not have to file an annual return. So the IRS is trying to get the word out to the seniors and veterans without earned income.
To help avoid confusion, Social Security and Veterans Administration beneficiaries can expect to receive a packet of information about claiming economic stimulus rebates in late March, the IRS announced February 24, 2008.
Seniors and Veterans
The Economic Stimulus Act treats Social Security, VA and certain other government benefits as qualifying income for purposes of the rebates and child payments. However, Supplemental Social Security Income (SSI) does not count as qualifying income.
Soon after Congress approved the rebates, the IRS announced special procedures for seniors, VA beneficiaries and others to claim their rebates. These individuals will need to file Form 1040A.
"Seniors who would not normally be filers should consider using IRS Free File," said Art Auerbach, CPA, for Goodwin & Co. of McLean, Va. Auerbach said he is advising clients with parents, other relatives and friends receiving Social Security benefits to file electronically using IRS Free File rather than paying for return preparation. The income threshold for IRS Free File this year is $54,000. Individuals who prefer to file paper returns can receive help from the elder Volunteer Income Tax Assistance (VITA) program, he noted.
The IRS intends to send information packets explaining the process to Social Security and VA beneficiaries in late March, an IRS spokesperson confirmed. "The Social Security Administration is providing the IRS with a list of beneficiaries who fit the parameters for rebates," said an IRS spokesperson. The spokesperson did not know how the Service will receive the names and addresses of VA beneficiaries. The VA did not respond to inquiries for clarification by press time.
Rebates reach as high as $600 for individuals and $1,200 for married couples filing jointly. Taxpayers may also be eligible for a $300 payment for each qualifying child.
- Related items:
- You Must File 2007 Tax Return To Receive Stimulus Rebate in 2008
- Economic Stimulus Package Clears Congress
- Survey Finds Most Consumers Would Not Spend Tax Rebate
- National Economic Stimulus Legislation Agreement Announced
- Economic Stimulus Plan: How Might It Work?
- Tax Round-Up: A Look Ahead to Changes in 2008
Posted March 4, 2008.
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