What the Economic Stimulus Package Means to Seniors and How to get Your Rebates
The Economic Stimulus plan signed into law by President Bush last month includes a provision for Social Security beneficiaries who normally wouldn’t qualify for tax rebates to be eligible for payments of $300 - $600 this year. This provision added almost 20 million seniors to the economic recovery plan.
What You Need to Know
According to the IRS, everyone seeking a rebate under the program will have to file a 2007 federal tax return, preferably by April 15, if they want to receive a rebate check in May or June. Tax returns filed for the sole purpose of a rebate check are not due by April 15. Seniors have until late fall to submit the require 1040A form.
You must have at least $3,000 in qualifying income to receive a rebate check. For the purposes of these rebates, qualifying income includes Social Security benefits, Tier 1 Railroad Retirement Benefits, and certain disability or survivor benefits from the Department of Veterans Affairs. It does not include Supplemental Security Income (SSI) payments.
In late March, the IRS will mail a packet with a letter, the necessary 1040A form, and instructions to older Americans who did not file a tax return in the last year.
If you already file a form 1040, there is nothing further you need to do to receive your rebate check. Your stimulus payments will not be included with your regular tax refund.
How to File
According to the IRS, seniors who would not otherwise be required to file a 2007 federal tax return should submit form 1040A prepared in the following manner:
- In the blank space at the top of page 1 write in the words “Stimulus Payment” above the title of the form.
- Include name, address, and Social Security number in the appropriate areas..
- Enter your filing status and exemption information on lines 1 through 6d on the form..
- Enter qualifying income received in 2007 from Social Security benefits, Tier 1 Railroad Retirement benefits, and veteran’s benefits on line 14a of form 1040a..
- If you would like direct deposit of your rebate into your bank account fill out lines 44b through 44d..
- Sign and date the form and send it to the IRS..
The above information is excerpted from IRS publications and should not be taken as tax preparation advice. If you have questions about how to file your personal return, please consult the IRS or a tax preparation professional directly.
Beware of Scams and Fraud
The IRS has already warned individuals about e-mail, telephone, and postal mail scams promising help in getting your rebate check quicker. Be aware, the only way to receive your rebate check is to file a federal tax return with the IRS. The first checks will not be available until early May. No one can get you your check any sooner. Please keep in mind that only the IRS can send you a letter regarding your tax situation. They will never e-mail you or call you on the telephone requesting personal information. Also, they will not come to your home and demand personal information.
Please report to the IRS if you are contacted by any potential scam artists.
About RetireSafe
RetireSafe is a grassroots advocacy organization made up of almost 400,000 senior citizens promoting dynamic solutions to America’s retirement security challenges. RetireSafe is dedicated to preserving and enhancing the options, benefits and lives of older Americans.
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