jmcgready.com

Here are myths the IRS is trying to debunk:

Myth:
The stimulus payment will reduce a taxpayer’s 2008 refund.

Fact:
The payment will not reduce refunds
or increase the amount owed
when a 2008 return is filed.

Myth:
The stimulus payment is taxable.

Fact:
It is not taxable,
but taxpayers are encouraged to keep a copy of the IRS notice
they will receive later this year listing the amount of their payment.

In the event a taxpayer does not qualify
to receive the full amount this year
but does next year,
the notice will be a record of the previous amount received.

Myth:
Taxpayers needn’t do anything in order to receive a stimulus payment.

Fact:

Taxpayers must file a 2007 tax return in order to be eligible for a payment.

After filing a 2007 return: however, the taxpayer is set and the IRS will do the rest.

Myth:
Everybody is eligible for a check.

Fact:
At the minimum, a taxpayer must have at least $3,000 of “qualifying income”
to receive a minimum of $300 for single filers
or $600 for married taxpayers filing a joint return.

Qualifying income includes:

• Social Security benefits,
• certain Railroad Retirement benefits,
• certain veterans’ benefits
• and earned income, such as:
  • income from wages,
  • salaries
  • tips
  • and self-employment.

  For taxpayers filing joint tax returns,
  only a total of $3,000 of qualifying income from both spouses
  is required to be eligible.

  Also, for those who don’t normally file,
  a tax return – Form 1040A -
  will be needed this year to get a check.

  Myth:
  Only paper checks will be issued.

  Fact:
  Direct deposit is the best way to receive the payment.

  Eligible taxpayers who choose direct deposit for their 2007 tax year refund
  will receive their stimulus payment the same way.

  Myth:
  The IRS will contact taxpayers either by telephone or e-mail
  about their payments.

  Fact:
  Watch for scams.

  IRS will not contact taxpayers by telephone or e-mail
  about stimulus payments or refunds.

  Source: www.irs.gov

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here’s some more specific filing information on tax rebates for
those who recieve Railroad Retirement benefits
or VA benefits (disability, pension, or survivor’s benefits)

As always, watch out for tax rebate scams

From irs.gov
via the Lancaster Eagle Gazette

Free Tax Help Available

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 elderly 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.

Certain Benefits Count toward Qualifying Income

Normally, certain Social Security,
Railroad Retirement benefits
and certain veterans’ payments
are not subject to income tax.

However, the economic stimulus law passed in February
contains a special provision allowing Social Security recipients
and recipients of certain veterans’ benefits
and certain Railroad Retirement benefits
to count those benefits toward the qualifying income requirement of $3,000
and thereby qualify for the stimulus payment.

This means a taxpayer who had, for example, $500 in earned income
and $2,500 in any combination of the benefits described above
can count those benefit payments toward his or her qualifying income
to reach the $3,000 earned income requirement,
even though the individual would not otherwise owe taxes on such income.

For purposes of meeting the qualifying income requirement,
the following benefits need to be reported in any combination
on Line 20a of Form 1040
or Line 14a of the Form 1040A.

• Social Security benefits reported on the 2007 Form 1099-SSA,
  which people would have received in January 2008.

  People who do not have a Form 1099 may estimate their annual Social Security benefit
  by taking their monthly benefit,
  multiplying it by the number of months during the year they received the benefits,

  and entering the number on Line 20a of Form 1040
  or Line 14a of the Form 1040A.

• Supplemental Security Income (SSI) does not count as qualifying income for the stimulus payment.
• Railroad Retirement benefits reported on the 2007 Form 1099-RRB,
  which recipients would have received in January 2008.
• The sum of veterans’ disability compensation, pension or survivors’ benefits
  received from the Department of Veterans Affairs in 2007.

  People are allowed to estimate their annual benefit by taking their monthly annual veterans’ benefit, multiplying it by the number of months during the year they received benefits,
  and entering the number on Line 20a of Form 1040
  or Line 14a of the Form 1040A.

People should note that
Line 20a of Form 1040
and Line 14a of the Form 1040A
are designated for Social Security.

To qualify for the economic stimulus payments,
these lines should also be used to include any qualifying
Railroad Retirement or veterans’ benefits.

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photo credit: meyshanworld

This is especially key for college students
who aren’t claimed as dependents by their parents.

I found this out when my mom,
who normally doesn’t file as she is on Social Security,
had me check this out for her -

now I’m glad i did
Read the rest of this entry »

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