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By Rosemary Heins, University of Minnesota Extension
ST. PAUL, Minn. (3/24/2008) — Attention low-income workers, social security and certain veterans' benefit recipients: File tax returns this year!
Individuals who might not otherwise be required to file a 2007 tax return will need to file one in order to obtain an economic stimulus payment. The tax return must show at least $3,000 in qualifying income.
Those whose income is primarily social security payments, railroad retirement benefits and/or certain veterans' payments are not subject to income tax and need not file tax forms each year. The economic stimulus law passed in February contains a special provision to count those benefits toward the qualifying income requirement of $3,000. Thus they will qualify for the stimulus rebate check which will range from $300 to $600 for individuals and $600 to $1,200 for joint filers. Taxpayers may receive $300 for each qualifying child. The stimulus payment will not be taxable income next year.
Supplemental Security Income (SSI) does not qualify as income for the stimulus payment.
An example may be a taxpayer who earned $500 in earned income and $2,500 in any combination of the benefits described above. They can count those benefit payments toward their qualifying income to reach the $3,000 earned income requirement. The individual would not otherwise owe taxes on such income.
For those who have already filed, if there was at least $3,000 in qualifying income you need not do anything else. The stimulus checks should start arriving in 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 return will not increase the person's tax liability but establish eligibility for the stimulus rebate. Taxpayers can use IRS Form 1040X to amend a tax return in order to qualify for the payment. For more information visit the IRS website.
Low- and moderate-income taxpayers don't need to use their grocery money to get help in filing tax forms. Volunteer Income Tax Assistance sites provide free help to low- and moderate-income taxpayers. Locate a program by calling 1-800-906-9887. AARP Tax Aide sites help file these forms at no charge, too. Call 1-888-227-7669 or visit the AARP web site to find a location near you. Many county human service agencies may help taxpayers find a free tax assistance site nearby as well.
Any use of this article must include the byline or following credit line:
Rosemary Heins is a family resource management educator with University of Minnesota Extension.
Media Contact: Catherine Dehdashti, U of M Extension (612) 625-0237, ced@umn.edu
NOTE: News releases were current as of the date of issue. If you have a question on older releases, use the news release search (upper left-hand column of the News main page) or the main Extension search (upper right of this page) to locate more recent information.