Guest Author - Lili Pintea-Reed
In May the IRS will start to send Economic Stimulus Rebate checks to tax payers in the USA. In order to get this rebate you MUST file a 2007 Tax form (2007 forms are filed in 2008).
To get a payment, taxpayers must have:
1)a valid Social Security number,
2)Make ATLEAST $3,000 of income
3)file a 2007 federal tax return.
The IRS will take care of the rest. To quote the IRS WEB site:
"Eligible taxpayers will receive between $300 to $600 if single or $600 to $1,200 if married filing jointly. Millions of retires, disabled veterans and low-wage earners who usually are exempt from filing a tax return must do so this year in order to receive a stimulus payment."
Since many of my readers are retired, disabled, or earn low incomes I have looked into this further.
For Social Security Benefit Recipients:
Certain Social Security payments are not subject to income tax. The temporary economic stimulus law has a special provision allowing Social Security recipients to count those benefits toward income requirements of $3,000 and thereby qualify for the stimulus payment. This Social Security benefit is reported to you at the end of the year when you get:
Social Security 2007 Form 1099-SSA
When you file a 2007 Tax form you would list it on:
Line 20a of Form 1040 or Line 14a of the Form 1040A.
Veterans Benefits Recipients
Like Social Security benefit Recipients, Veterans Benefits recipient or their survivors need to file a 2007 Tax Return. The need to multiply their monthly benefit by the months in the year they received it. Then the need to report this amount on :
Line 20a of Form 1040 or Line 14a of the Form 1040A.
Send in the form and then you will get your Economic Stimulus amount in May.
Free Tax Help Available
People who want 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 any low- and moderate-income taxpayers.
Call 1-800-906-9887
The Tax Counseling for the Elderly (TCE) Program provides free tax help. 1-888-227-7669 or visit the AARP Web site.
