- IRS: Tax Rebates Worth Billions Unclaimed by Retirees, Veterans
IRS: Tax Rebates Worth Billions Unclaimed by Retirees, Veterans
The IRS is reaching out to 5.2 million Social Security recipients and disabled veterans who qualify for tax rebates, but hadn't filed to claim them by July. About 20 million Social Security and veterans beneficiaries are eligible, but the agency has yet to receive claims from one in every four.
The rebates, also known as economic stimulus payments, are worth $300 or more per person, and $600 or more for married couples. Those eligible MUST file a tax return - even if they don't normally do so - to obtain their rebates.
By filing a 2007 return before Oct. 15, they can receive their rebates this year, the agency said.
The IRS is asking anyone with friends or family members who receive Social Security or veterans benefits to help ensure they get their rebates.
If you want to assist a family member or neighbor, you can:
- Use the TurboTax Free Edition. It allows those with simple returns, or those who are filing just to get a rebate, to prepare and file a federal tax return at no cost.
- Go to the IRS website. It offers free step-by-step instructions and the necessary forms for Social Security, Veterans and other beneficiaries to file a simple return, the 1040A, to claim their rebates.
Learn more by reading:
2007 Rebates for Social Security, Railroad Retirement and Veterans' Beneficiaries
Rebates: Don't Normally File A Tax Return? Use TurboTax Free Edition To Get Your Rebate
The IRS said it planned to mail reminder notices to the 5.2 million beneficiaries who qualify for rebates but haven't filed.
The notices are scheduled to be mailed over a three-week period, starting July 18.
The IRS wants to assure those who qualify, and are filing a return just to claim a rebate, that:
- Getting a payment will have no effect on their Social Security payments or other federal benefits they currently receive.
- Filing a 2007 return just to get a rebate does NOT mean that retirees must start filing annual tax returns again.
- Any rebates received will NOT be taxed later. The rebates are free money from the government intended to stimulate the economy.
- There is no penalty for filing after April 15 when no taxes are owed.
Under the Economic Stimulus Act of 2008, most taxpayers must have at least $3,000 in earned income (from working) in 2007 to qualify for rebates. But the law also created a special category for certain recipients of Social Security, Veterans Affairs and Railroad Retirement benefits.
These recipients can qualify if they have at least $3,000 in benefits income.
Many members of this group do not normally need to file tax returns because their benefits income is not taxable.
To get a rebate, they need only to file a simple tax return, a Form 1040A.
For the purpose of getting a rebate, these types of income qualify:
- Social Security retirement, disability and survivor payments
- Veterans disability compensation, disability pension and survivor payments
- The portion of Railroad Retirement Tier 1 benefits that is a Social Security equivalent.
Some individuals who receive the benefits above will not qualify, however, if they were claimed as dependents on the tax returns of others.
Supplemental Security Income, also known as SSI, does NOT count as qualifying income.
