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Division of Aging and Division of Aging and DHS Divisions General Eldercare Locator
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This
column appears in the March 2008 edition of Aging Arkansas,
Money for You The Economic Stimulus Act of 2008 provides rebates of $600 to $1,200 to most taxpayers and $300 checks to disabled veterans, the elderly and other low-income people. Most people will automatically receive a rebate by filing their income tax return. However, some older Americans will have to take an extra step to receive their rebate. Older Americans who don’t normally file an income tax return will have to file one to receive their rebate. This from the IRS: WHAT YOU COULD GET: You could receive a payment of $300 for individuals or $600 if you are married and file a joint tax return with your spouse. 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 is to get the stimulus payment is file a 2007 IRS Form 1040 or Form 1040 and report at least $3,000 in qualifying income on the form. You can include the amount of your SSA 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. Then just 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 the 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 MOR INFORMATION: In late March 2008, the IRS will mail a packet of information 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.gov. Help is also available locally thanks to AARP. Beginning first week of February 2008 AARP Arkansas Tax-Aide will provide tax assistance and preparation services at no cost to any low and moderate income taxpayer, with emphasis on those age 60 and older. This service is the state's largest free tax counseling and assistance service. Arkansas holds the distinction of being the first and only state in the nation to electronically prepare and file all returns. This eliminates pencil calculation mistakes. In a recent AARP survey, Arkansas taxpayers stated they were 98% very satisfied with the service. In 2007 AARP's approximately 300 volunteers at 42 Tax-Aide sites helped 28,411 taxpayers complete both federal and state returns, including many shut-ins. This tax season AARP added two new locations: Jonesboro and Pine Bluff. AARP will have 42 sites statewide staffed with volunteers trained and certified. The Tax-Aide program has a very high accuracy rate. Taxpayers receive all benefits, credits, and deductions to which they are entitled at no cost to them. Refunds are usually received within one or two weeks. AARP membership is not required; there are no age or income limit restrictions. For more information call toll-free 1-888-our-AARP (1-888-67-2277). Division of Aging and Adult Services |
