Economic Stimulus payments – Are you eligible?
Anyone who had more than $3,000 of reportable income in 2007 may be eligible for a “stimulus payment” from the federal government, even if that income was entirely from Social Security.
You must, however, file a tax return to receive a payment. The amount of the payment is based on your income and marital status. Please read the following in formation, which was provided by the Internal Revenue Service.
Even if you are not otherwise required to file a tax return, you may still be entitled to an economic stimulus payment from the federal government.
What you could get: If you file with at least $3,000 of qualifying income, you could receive a payment of $300 for individuals or $600 if you are married and file a joint tax return with your spouse. Individuals with higher incomes may receive as much as $600 ($1,200 if filing jointly.) For taxpayers with an adjusted gross income of more than $75,000 (or more than $150,000 if filing jointly), the payment will be reduced or phased out completely. Eligible taxpayers who qualify for a payment may receive an additional $300 for each qualifying child. To qualify, a child must be under age 17 as of December 31, 2007.
What you need to do
All you have to do to get the stimulus payment is file a 2007 IRS Form 1040 or Form 1040A and report at least $3,000 in qualifying income on the form. You can include the amount of your Social Security benefits to qualify for the stimulus payment.
Qualifying income
Add the amount of your Social Security benefits to other qualifying income, such as wage earnings or certain benefits paid by the Department of Veterans Affairs, to reach the $3,000 requirement. However, Supplemental Security Income (SSI) does not count as qualifying income for the stimulus payment.
What you fill out
You will enter your name, address, Social Security number, and filing status on the form. Enter the amount of benefits reported to you in January on Form 1099-SSA on Line 14a of Form 1040A or Line 20a of Form 1040. If you don’t have Form 1099-SSA, you can estimate your Social Security benefits by taking the monthly amount you received last year and multiplying it by the number of months you received a check. If you need to include wage earnings to reach the $3,000 qualifying level, enter that amount on Line 7 of Form 1040A or 1040. In addition, you should write the words “Stimulus Payment” at the top of the 1040A or 1040.
Is the stimulus payment taxable next year?
No!
Will this payment affect the amount of SSA benefits you receive?
No!
When will I receive my payment?
The IRS will begin mailing checks in early May. For more information, read the IRS information packet being mailed to recipients of Social Security benefits who did not file a tax return last year. The packet will contain guidance to help you claim the stimulus payment. If you need information in the interim, you can visit the IRS web site at www.IRS.com. The tax return you would need to fill out may be very simple, and Elder Services (1-800-544-5242 or 499-0524) has packets that contain the forms needed and a filled out sample. Please call to ask for one of these packets.
Reprinted from an IRS bulletin.
