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Millions of seniors who do not typically file federal income tax returns are eligible for rebates this year―if they file their 2007 federal income tax returns and have at least $3,000 in qualifying income.
 Qualifying income includes earned income such as wages and tips, as well as certain benefits from Social Security, Veterans Affairs, and Railroad Retirement. It does not include interest income, capital gains, or Supplemental Security Income payments.
If you're not sure that you or the seniors in your life qualify for rebates, the AARP Foundation Tax-Aide program and the National Council on Aging's BenefitsCheckUp have created a web-based tool that helps seniors determine their eligibility and also helps them to fill out the forms. It is available online at http://www.aarp.org/money/personal/articles/advisory_about_economic_stimulus_payments.html and http://www.benefitscheckup.org/.
The IRS has also published a number of tips to help seniors claim their rebates, including the following:
 If you file a paper return, you must write "Stimulus Payment" along the top of your Form 1040A. You might want to get a copy of Package Form 1040A-3, which includes both a sample 1040A and a blank 1040A form for your use, as well as various tax tips.
If you prefer to file online, the IRS website includes a Free File - Economic Stimulus Payment page at http://www.irs.gov/efile/lists/0,,id=179739,00.html. Here the IRS and its Free File Alliance partners, including TurboTax® and Tax$imple®, provide electronic filing options as a special service to those who must file tax returns solely to receive rebates.
When possible, use direct deposit. If you complete the blanks for direct deposit on the tax return, the IRS will transmit your rebate electronically. You'll probably receive it faster and, because you won't have to deposit a paper check, it may be safer.
If you can't file your return by the April 15 deadline, you are automatically granted an extension until October 15 to file a tax return that is required solely to claim a rebate. In this instance, you do not have to file a form with the IRS to be granted the extension.
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Have questions about a rebate, or about your tax situation?
Give us a call. We can help. |
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Ryan Bray is a senior manager in the Bader Martin tax practice. Ryan has significant professional experience in tax planning and compliance, with an emphasis on estates and trusts, and real estate. |
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