Senior citizens and other low-income earners who don’t normally have to file a tax return will miss out on federal stimulus refund checks if they don’t file this year.
To raise awareness, the Internal Revenue Service is mounting a publicity campaign that’s expected to hit mailboxes soon. But only those who filed a return last year will see the first letter. Separate letters will be sent to those collecting Social Security benefits and veterans’ benefits.
“We are working to get the word out to these people that they are entitled to a payment, but they must file a tax return to get one,” said Jean Carl, IRS spokeswoman in Denver. “We’re still figuring out how to reach those who never file taxes.”
The problem extends to a variety of people who live on Social Security, veterans benefits, railroad retirement benefits or disability and are not typically required to file a tax return.
To reach them, the IRS is sending more than 130 million letters to taxpayers — and 21 million more to Social Security recipients — to let them know what they need to do to claim their piece of the $168 billion stimulus plan.
The agency is working on a plan to open its main offices in all major cities on a Saturday in March for taxpayers to get free help in filing for the rebates.
Taxpayers who file a return are automatically set to get the tax-free rebate and will get it sometime after May 1, when the first ones are to be issued.
Rebate payments will be separate from tax refunds and will be deposited electronically only if a taxpayer’s refund is made via direct deposit. A paper check will be issued to any taxpayer who uses a refund-anticipation loan.
Rebate payments will not be reduced by any tax a filer may owe. Taxpayers who owe income tax should pay by April 15 to avoid penalties and interest. They can still get the rebate deposited electronically by providing their bank information on their return.
Individuals who don’t file a return, but must to get a rebate, may only use forms 1040 or 1040A. They may not use a 1040EZ, Carl said.
The maximum rebate is $600 for an individual and $1,200 for a couple filing a joint return. But those on Social Security or other tax-free disability or retirement benefit can get a $300 rebate ($600 for a joint return) if they have at least $3,000 in qualifying income.
The amount of the rebate diminishes for individuals with adjusted gross incomes higher than $75,000 and couples with more than $150,000.
David Migoya: 303-954-1506 or dmigoya@denverpost.com
Do you qualify?
You can’t get cash from the stimulus program if you:
• Don’t file a 2007 tax return.
• Didn’t pay any federal income tax last year and your income from all sources — including nontaxable income such as disability or retirement benefits — is less than $3,000.
• Can be claimed as a dependent on someone else’s return.
• Don’t have a valid Social Security number or are a nonresident alien.
• Use forms 1040NR, 1040NR-EZ, 1040PR or 1040SS for 2007.
Source: Internal Revenue Service
