IRS Stimulus Check Program Details IRS UPDATE‐ MUST FILE TAX RETURN TO RECEIVE A STIMULUS CHECK BACKGROUND: On February 13, 2008, President Bush signed into law legislation to stimulate the economy. Due to the advocacy of the aging network, many senior groups and individuals, low‐income seniors who are living primarily on their Social Security checks, as well as seniors receiving Railroad Retirement benefits, veterans' disability benefits, pension or survivor benefits are eligible for a rebate check. On February 15, 2008, the Internal Revenue Service (IRS) announced that the only way to receive a rebate from the economic stimulus package is to file a tax return. This applies to recipients of Social Security and veterans' benefits who do not normally need to file returns. IF YOU PAY INCOME TAXES: Applying for a rebate check requires that you file a 2007 tax return. Once the return is filed, the IRS will determine how much you are eligible to receive and send a check in the appropriate amount. Those seniors who already are required to file a return need do nothing extra to apply for a check. SENIORS WHO MAY NEED TO FILE A RETURN: These would include: individuals who have gross income over $10,050; married individuals filing a joint return with one spouse over 65 and with gross income over $18,500; and married individuals filing a joint return who are both over 65 and with gross income over $19,600. The maximum check authorized is $600 for individuals and $1,200 for joint filers, with an additional $300 per child for those who have dependent children. Eligibility for the checks begins to phase out for taxpayers with adjusted gross incomes of $75,000 for individuals and $150,000 for joint filers at a rate of $50 for every $1,000 in income. Eligibility is completely phased‐out for individuals with incomes over $87,000 and joint filers with incomes over $174,000. LOW‐INCOME SENIORS: Low‐income seniors will receive a check in the amount of $300 for individuals and $600 for couples filing jointly, with an additional $300 each for any qualifying children. To be eligible for a stimulus check, one must have at least $3,000 of any combination of: earned income, Social Security benefits, Railroad Retirement benefits, or certain veterans' benefits (including survivors or disabled veterans). SSI does not count as qualifying income for the stimulus payment. Also not counted are dividends, interest and capital gains income or non‐veterans or non‐Social Security pension income (such as that from Individual Retirement Accounts.) If you have $3,000 in qualifying income, you must file a tax return to receive a check, even if you do not have enough income to otherwise be required to file. Things to consider when applying for a rebate check: ‐ Low‐income seniors should use Form 1040A to apply for their checks. (Use of Form 1040 is not recommended and Form 1040EZ is not permitted.)
‐ In the blank space at the top of Page 1 of the tax return, write the words "Stimulus Payment" above the title of the form. ‐ Enter your name (both spouses, if filing jointly), mailing address, and Social Security numbers on the appropriate lines of the form, and include your filing status and exemption information on lines 1 through 6d of the form. ‐ Enter any wages that were earned on line 7. ‐ Social Security benefits, Railroad Retirement or eligible veterans' benefits should be reported on Line 14a. Social Security beneficiaries who are filling a 2007 tax return only to obtain the stimulus rebate do not need a replacement 1099 to determine eligibility. An estimate of their 2007 Social Security benefit for 2007 is all that is needed. One can estimate an annual benefit by multiplying the monthly benefit, before deducting taxes or Medicare premiums, by the number of months the benefit was received. ‐ Sign and date the tax form. If someone has already filed a tax return showing less than $3,000 in income and did not include Social Security, Railroad Retirement or veterans' benefit as part of their income, they should file a Form 1040X to list those non‐taxable benefits and qualify for a check. Filing a return will not affect an individual's liability to the federal government in any way. It simply establishes eligibility to receive a check. Receiving a check does not affect any other income‐based benefits an individual may be receiving from the federal government (such as Food Stamps, LIHEAP, etc.). GENERAL INFORMATION: Valid Social Security numbers are required to receive a stimulus check. If you are married filing jointly, both spouses must have valid Social Security numbers. This is also the case for any qualifying children. If an individual is issued any other identification number by the IRS such as an Individual Taxpayer Identification Number (ITIN) or Adoption Taxpayer Identification Number (ATIN), they are not eligible to receive a check. Also ineligible are individuals who can be claimed as dependents on someone else's return, or taxpayers who file Forms 1040‐NR, 1040‐PR or 1040‐SS. FREE TAX PREPARATION HELP AVAILABLE: Low‐ and moderate‐income workers, including veterans, can get free tax help through the Volunteer Income Tax Assistance (VITA) Program. 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. To find the location, dates and hours of the closest TCE site, call the IRS toll‐free number at 1‐800‐829‐ 1040.
As part of the TCE program, AARP offers the Tax‐Aide Counseling Program at many sites nationwide during the tax filing season. To locate the nearest AARP Tax‐Aide site, call 1‐888‐227‐7669 or visit AARP's web site at www.aarp.org. For complete information about eligibility for stimulus payments, or other questions about the economic stimulus bill, you can go to the IRS website at www.irs.gov or call their toll‐free number 1‐800‐ 829‐1040. The site will soon have an online tool which will allow taxpayers to calculate the amount of their advance payment and to check on the status of their specific payment. BEWARE OF SCAMS: Be very careful of scam artists. The IRS will never call or e‐mail an individual asking for financial information. No one is required to use a particular tax preparer to claim a check. If you need help, you should contact one of the authorized tax assistance programs listed above. This information is being provided to you by the Niagara County Office for the Aging