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Tax rebate information (and scam warning) for Railroad Retirement or VA benefits

with 6 comments

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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