The IRS has issued 76.1 million economic stimulus payments so far this year, based on 2007 tax returns filed. This equals approximately $63.8 billion. The agency expects to issue 124 million payments by the end of the year. Eligible individuals are receiving up to $600 ($1,200 for married couples filing joint returns) plus $300 for eligible children younger than age 17. Potential beneficiaries must apply for the payment by October 15, 2008. Those who have already filed a form 1040 for tax year 2007 do not need to do anything else to receive the one-time payment.
Those who do not normally need to file an income tax return, but received at least $3,000 from Social Security benefits, veterans benefits, certain railroad retirement benefits, or earned income in 2007, must submit a simplified version of a form 1040A to the IRS in order to receive the stimulus payments. The minimum payment for this group is $300 for an individual and $600 for a couple filing jointly. The IRS has identified 5.2 million retirees and veterans benefits beneficiaries who may be eligible for the economic stimulus payments. In July 2008, the IRS announced that it would send a second special mailing to those individuals who may be eligible but have not yet filed for the payment. The package includes a letter explaining eligibility for the stimulus payment and how to claim it. It also includes a sample income tax form plus an actual tax form that people can complete and mail to the IRS.
A recent AARP survey reveals that failure by many seniors to collect the economic stimulus payment is not due to lack of need, but by lack of knowledge regarding the payment and how to apply for it. AARP has taken steps to reach out to seniors and others who may not realize that they may qualify for this payment. They have an online form at www.aarp.org/stimulushelp that contains a simplified form for basic information, which is then transferred to the correct places on the form 1040A. AARP recognizes that many seniors do not use the Internet, but the purpose of the AARP outreach is to make seniors aware of their options.
Potential recipients of the economic stimulus payment should take care to protect their valuable personal information. The IRS will always communicate in writing; the agency will never call or e-mail asking for a person’s Social Security number or bank account information. The IRS will never send a letter or e-mail asking for a response by telephone or e-mail, and IRS agents will not ask to come to a person’s home for the purpose of the economic stimulus payment. Do not pay anyone or go through a third-party intermediary to apply for or speed up the payment process.
Andrew Hook
Oast & Hook
www.oasthook.com
Comments