Seniors Eligible for $300 Tax Rebate Checks

Congress passed an economic stimulus package last week (which President Bush signed February 14, 2008) that includes one-time tax rebate checks (stimulus payments) to be mailed to tens of millions of Americans. The stimulus package also includes $300 rebates for 20 million low-income older Americans.

Individuals who might not otherwise be required to file a 2007 tax return will need to file a return this year to receive the stimulus payment. Their 2007 tax return must show at least $3,000 in qualifying income.

Social Security recipients, veterans and retired railroad workers who might not otherwise need to file a tax return must do so to receive the economic stimulus payment.

Steps to Receive Stimulus Payments

• This is an IRS program and specific questions about the stimulus payments should be referred to the IRS, at either its website (www.irs.gov) or 800 number (1-800-829-1040).
  
  
• To receive a payment, individuals must file a tax return for 2007. There are approximately 20 million Social Security beneficiaries who would not normally file a tax return for 2007, but who will need to file a tax return for 2007 to receive a stimulus payment.
  
  
• All Social Security beneficiaries received an SSA-1099 earlier this year related to their 2007 Social Security payments. Some of the 20 million beneficiaries may have discarded their 1099 form.
  
  
• Beneficiaries should not contact Social Security for a replacement 1099 form, as they do not need one. The IRS will accept an estimate of Social Security benefits received in 2007 in line 14A of the 1040A tax form. Clients can just multiply their 2007 monthly benefit amount times the number of months they received benefits in 2007. IRS will match this estimate against the 1099 file provided to them to determine if the person meets the income threshold.
  
  
• Receipt of Supplemental Security Income (SSI benefits) does not count in determining eligibility for stimulus payments

For Those Who Have Already Filed

Some recipients of the benefits described above may have filed a 2007 tax return reporting at least $3,000 in qualifying income. They do not need to do anything else. They will begin receiving their stimulus payments in early May.

Others may need to amend a previously filed tax return to include benefits to reach the $3,000 qualifying income level. Adding these benefits on an amended tax return will not increase an individual’s tax liability but will establish eligibility for the stimulus payment. Taxpayers can use IRS Form 1040X to amend a tax return in order to qualify for the stimulus payment.

Information and Assistance

Individuals who need to file a return this year to receive a stimulus payment may be able to take advantage of thousands of free tax preparation sites nationwide for low-income and elderly taxpayers.

• The Volunteer Income Tax Assistance (VITA) program provides help to low- and moderate-income taxpayers. Call 1-800-906-9887 to locate the nearest VITA site.
  
  
• The Tax Counseling for the Elderly (TCE) Program provides free tax help to people age 60 and older. As part of the IRS-sponsored TCE Program, AARP offers the Tax-Aide counseling program at more than 7,000 sites nationwide during the filing season. To find an AARP Tax Aide site call 1-888-227-7669 or visit the AARP website.