Rebates for Seniors: What You Need to Know to Receive Your Check

On February 13, 2008, President Bush signed into law legislation to stimulate the economy. As a result of successful lobbying by the National Committee and other seniors groups, low-income seniors who are living primarily on their Social Security checks, as well as seniors receiving Railroad Retirement benefits, veterans' disability benefits, pension or survivor benefits are eligible for stimulus checks for the first time.

If you pay income taxes:

Applying for a check is simple for most workers: you only need to file a 2007 tax return. IRS will determine how much you are eligible to receive and send a check in the appropriate amount. Those seniors who are already required to file a return also need do nothing extra to apply for your checks.

Seniors who may need to file a return:

The maximum check authorized is $600 for individuals and $1,200 for joint filers, with an additional $300 per child for those who have dependent children. Eligibility for the checks begins to phase out for taxpayers with adjusted gross incomes of $75,000 for individuals and $150,000 for joint filers at a rate of $50 for every $1,000 in income. Eligibility is completely phased-out for individuals with incomes over $87,000 and joint filers with incomes over $174,000.

Low-Income Seniors:

Low-Income seniors will receive a check in the amount of $300 for individuals and $600 for couples filing jointly, with an additional $300 each for any qualifying children. To be eligible for a stimulus check, you must have at least $3,000 of any combination of: earned income, Social Security benefits, Railroad Retirement benefits, or certain veterans' benefits (including survivors of disabled veterans). SSI does not count as qualifying income for the stimulus payment. Also not counted are dividends, interest and capital gains income or non-veterans or non-Social Security pension income (such as that from Individual Retirement Accounts).

If you have $3,000 in qualifying income you must file a tax return to be eligible to receive a check, even if you do not have enough income to otherwise be required to file. Filing a return will not affect your liability to the government in any way - it simply establishes your eligibility to receive a check. Receiving a check does not affect any other income-based benefits you may be receiving from the federal government such as food stamps, low-income heating assistance, etc. The sooner you file your return, the quicker you can receive your rebate, but you must file by October 15, 2008 to be sure you will receive a check this year.

•  Low-income seniors should use Form 1040A to apply for your checks.

•  In the blank space at the top of Page 1 of the return, write the words "Stimulus Payment" above the title of the form .

•  Enter your name (both spouses if filing jointly), mailing address, and Social Security numbers on the appropriate lines of the form, and include your filing status and exemption information on lines 1 through 6d of the form.

•  Any wages you have earned should be entered on line 7.

•  Your Social Security benefits, Railroad Retirement or eligible Veterans benefits should be reported on Line 14a. If you do not have documentation of the exact amount you received in 2007, you may estimate your annual benefit by multiplying your monthly benefit, before deducting taxes or Medicare premiums, by the number of months you received a benefit.

•  Sign and date the form.

If you have already filed a tax return showing less than $3,000 in income and did not include Social Security, Railroad Retirement or veterans benefits as part of your income, you should file a Form 1040X to list those non-taxable benefits and qualify for a check.

General Information

Valid Social Security numbers are required to receive a check. If you are married filing jointly, both spouses must have valid numbers. This is also the case for any qualifying children. If you have been issued any other identification number by the IRS such as an Individual Taxpayer Identification Number (ITIN) or Adoption Taxpayer Identification Number (ATIN), you are not eligible to receive a check. Also ineligible are individuals who can be claimed as dependents on someone else's return, or taxpayers who file Form 1040-NR, 1040-PR or 1040-SS.

Free Tax Help Available

Low- and moderate-income workers, including veterans, can get free tax help through the Volunteer Income Tax Assistance (VITA) program. 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. To find the location, dates and hours of the closest TCE site, call the IRS toll-free number at 1-800-829-1040.

As part of the TCE program, AARP offers the Tax-Aide counseling program at many sites nationwide during the filing season. To locate the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's Web site at www.AARP.org .

The IRS.gov Web site is the best source for additional information and answers to questions regarding the stimulus payments. The site has an online tool which allows taxpayers to calculate the amount of your payment and to check on the status of your check.

Be very careful of scam artists. IRS will never call or email you asking for financial information, and you are not required to use a particular preparer to claim your check. If you need help, contact one of the authorized locations mentioned above.

Department of Government Relations and Policy, April 2008