2008 Economic Stimulus Plan Forces Seniors to File In Order to Receive Rebates
The late decision to include seniors as part of the 2008 Economic Stimulus Plan is causing many seniors to consider filing a 2007 return. That is because only those individuals who file a 2007 return will be eligible to receive the rebate checks from the government. It has been estimated that some 20 million seniors could be eligible for the rebates.
The majority of seniors do not have sufficient income to require them to file a tax return. Normally, a married couple who are both 65 and older would file only if their 2007 income is greater than $18,550. In the case of a single senior who is 65 or older would only need to file if their 2007 income is greater than $10,050.
The Internal Revenue Service is going to work in conjunction with the Social Security Administration to inform seniors of there filing requirement in order to receive the rebate checks.
Some low income seniors may need to amend their returns in order to become eligible for the rebate checks if they have failed to report their Social Security Benefits on their already filed returns. Many low income seniors fail to report their social security benefits since they are normally not taxable.
Low income seniors need to weigh the cost of filing versus the potential to receive the rebates of $300 for a single taxpayer or $600 for a married filing joint taxpayer. Preparer fees even for these simple returns could be in the $50 to $150 range depending on the preparer. Seniors may find it more beneficial to use the IRS’s Volunteer Income Tax Assistance program (VITA) which provides free tax preparation services for those who qualify. For more information about VITA call 1-800-906-9887.
Those seniors looking to do it themselves and are also tech savvy may find the IRS free file system as the best solution. The IRS free file system is open to most individuals whose adjusted gross income is less than $54,000. The IRS free file program can be found at http://www.irs.gov/efile/article/0,,id=118986,00.html.
For those seniors that still have questions, they may contact the IRS Tax Counseling for the Elderly program at 1-800-829-1040. AARP members can call Tax Aide at 1-888-227-7669.
The Internal Revenue Service has also added an Economic Stimulus Payments Information Center to its website. The Economic Stimulus Payments Information Center can be found at http://www.irs.gov/irs/article/0,,id=177937,00.html.
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William B. Riccio, CPA/CITP is a certified public accountant. He is president of Riccio & Associates and can be reached at (216) 255-6913 or by e-mail at william@ohiocpa.net
