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Social Security Law Office News
April 2008
Economic Stimulus Payments Information
Starting in May, the Treasury will begin sending economic stimulus payments to more than 130 million households. To receive a payment, taxpayers must have a valid Social Security number, $3,000 of income and file a 2007 federal tax return. IRS will take care of the rest. Eligible people will receive up to $600 ($1,200 for married couples), and parents will receive an additional $300 for each eligible child younger than 17. Millions of retirees, disabled veterans and low-wage workers who usually are exempt from filing a tax return must do so this year in order to receive a stimulus payment.
Economic Stimulus Payments: Information for Recipients of Social Security Benefits
(Updated March 12, 2008)
People who receive Social Security retirement or disability benefits:
The IRS and Treasury will be working closely with the Social Security Administration to ensure that all eligible individuals know what to do to receive a stimulus payment.
Normally, certain Social Security payments are not subject to income tax. However, the economic stimulus law passed in February contains a special provision allowing Social Security recipients to count those benefits toward the qualifying income requirement of $3,000 and thereby qualify for the stimulus payment.
For eligible Social Security recipients who do not normally file a tax return, the IRS has prepared a 10-page informational package that provides instructions, a sample Form 1040A and a blank Form 1040A — everything needed to file the tax form today. See eligibility requirements below.
NOTE: Supplemental Security Income (SSI) does not count as qualifying income for the stimulus payment.
Basic Eligibility Requirements
- Individuals or families must have at least $3,000 in qualifying income, which can be income from or in combination with Social Security benefits, Veterans Affairs benefits, Railroad Retirement benefits and earned income.
- People must have valid Social Security Numbers.
- People cannot be claimed as dependents or eligible to be claimed as dependents on another's tax return.
- People must file a 2007 tax form, i.e. Form 1040A.
Mailing Addresses Even those who normally don't have to file a federal tax return will have to file one this year in order to claim the economic stimulus payment. Find out where to send yours.
Free File: Economic Stimulus Payment provides free tax preparation software and electronic filing for people who are submitting a return solely to receive their economic stimulus payment.
Individuals who need to file a return this year to receive a stimulus payment may be able to take advantage of thousands of free tax preparation sites nationwide for low-income and older taxpayers.
The Volunteer Income Tax Assistance (VITA) program provides help to low- and moderate-income taxpayers. 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. As part of the IRS-sponsored TCE Program, AARP offers the Tax-Aide counseling program at more than 7,000 sites nationwide during the filing season. To find an AARP Tax Aide site call 1-888-227-7669 or visit the AARP Web site. |
| IF YOU NEED LEGAL HELP, PLEASE CONTACT THE TEXAS LAW OFFICES OF MARTIN A. HARRY, PLLC. |
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