Economic Stimulus Payment Mailer Targets Social
Security, Veteran Benefits Recipients
This mailing especially targets senior citizens and
others that may not have filed a 2006 return
March
18, 2008 – The Internal Revenue Service is in the process of mailing
special information packages to 20.5 million recipients of Social
Security or Veterans Affairs benefits – primarily senior citizens - to
help them get their 2008 economic stimulus payment. Many of these
probably did not file a return for 2006 but must file for 2007 to
receive the stimulus payment.
The 10-page tax package contains everything the
recipients will need to file a 2007 tax form immediately. Each package
contains an informational notice, tips for completing Form 1040A, a
sample Form 1040A and an actual Form 1040A for the filer to complete.
The package is specially designed for people who
may qualify for an economic stimulus payment but who normally aren’t
required to file a tax return – most of these did not file a 2006
return.
“We want to put everything right at the fingertips
of the people who need this information the most,” said Linda E. Stiff,
Acting IRS Commissioner.
“In some cases, seniors and others in this group
haven’t needed to file a tax return for years or even decades. To help
them get a stimulus payment, we’re doing everything we can to make this
as easy as possible. These packages mean many people will just need a
pen and a stamp, and the IRS will do the rest.”
Under the Economic Stimulus Act of 2008, people may
be eligible for the minimum payment of $300 ($600 for married couples)
even if they do not normally file a tax return. There also is an
additional payment of $300 for people with eligible children younger
than 17. However, people must file an income tax return in order to
receive the payment.
Free Tax Help
for Senior Citizens is 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.
People who don’t normally need to file also can use
Free File – Economic Stimulus Payment, which is available at IRS.gov.
Several Free File software providers are making their products available
for the simplified filing of a tax return.
“These stimulus payments have the potential to help
people in real need and stimulate our economy,” said Tom Nelson, AARP’s
Chief Operating Officer. “The IRS, through efforts like this, is doing a
great job of informing people that they might be eligible for a stimulus
payment, offering step-by-step guidance on how they can apply, and what
scams they need to avoid.”
To qualify for the minimum economic stimulus
payment, people must have at least $3,000 in any combination of
qualifying income from retirement, disability or survivors’ benefits
from the Social Security Administration; disability compensation,
disability pension or survivors’ benefits from the Department of
Veterans Affairs; Tier 1 benefits from Railroad Retirement, certain
combat pay and earned income from wages, salaries, tips or net earnings
from self-employment that are includible in taxable income.
The mailing list of 20.5 million names represents
Social Security and Veterans Affairs benefit recipients who did not file
a tax return in 2006, allowing the IRS to directly target the special
package to people likely to qualify for a stimulus payment but who may
not otherwise file a tax return this year. The mailing, called Package
1040A-3, is separate from more than 130 million other economic stimulus
letters (Notice 1377) being sent this month to taxpayers who filed tax
returns in 2006.
Generally, the special mailing does not include
low-wage workers without a filing requirement who could qualify for
economic stimulus payments. The IRS is working with numerous community,
governmental organizations and charitable groups to reach low-income
workers and their families. People in this category also need to fill
out a tax form, preferably a simple Form 1040A.
With so many people potentially unaware of the
stimulus payments, Stiff encouraged people to reach out to help their
friends and family members.
“We don’t want anyone to fall through the cracks,”
Stiff said. “People can help friends and family members by making them
aware of the payments or helping fill out the forms. These forms are
very simple. In just a few minutes you can complete the entire process
by filling in just a few lines.”
A sample Form 1040A is included in the tax package
and is available at IRS.gov. People need to complete the lines for the
mailing label and provide a Social Security number; the filing status
(single or married) and exemptions (children younger than 17 and their
Social Security numbers)
People with earned income must complete Line 7 to
report their 2007 annual income. Recipients of Social Security, VA and
Railroad Retirement payments must complete Line 14a of Form 1040A to
report their 2007 annual benefits. Certain recipients should have a Form
SSA-1099 or Form RRB-1099 with that information. Or, people can multiply
their 2007 monthly benefit by the number of months the payment was
received for 2007 to estimate their annual benefit amount.
The IRS encourages recipients to complete the
direct deposit information on the Form 1040A if they have bank accounts.
Direct deposit will be the easiest and fastest way to receive a payment.
The IRS also encourages people to file their income tax return as soon
as possible. The IRS will begin issuing economic stimulus payments
starting in May.
The IRS reminds taxpayers it does not gather
information for stimulus payments over the telephone, and it does not
send unsolicited e-mail to taxpayers about tax account matters. If
taxpayers receive an unsolicited e-mail from someone claiming to be from
the IRS, don't click on any links. People should forward it to
phishing@irs.gov, and then delete it.
The only official IRS Web site is located at
www.irs.gov.
To be eligible for economic stimulus payments,
people must have valid Social Security numbers, have at least $3,000 in
qualifying income and not be a dependent or eligible to be a dependent
on someone else’s income tax return.
For taxpayers who normally file an income tax
return, the maximum stimulus payment is $600 ($1,200 for married
couples), amounts that will phase out starting with adjusted gross
income of $75,000 ($150,000 for married couples). For taxpayers who file
a 2007 income tax return, the amount of the economic stimulus payment
will be calculated automatically by the IRS.
Related Items:
Package 1040A-3 – The mailing sent to
income workers and recipients of Social Security, certain veterans’
benefits and certain Railroad Retirement benefits
March
18, 2008 – The Internal Revenue Service is in the process of mailing
special information packages to 20.5 million recipients of Social
Security or Veterans Affairs benefits – primarily senior citizens - to
help them get their 2008 economic stimulus payment. Many of these
probably did not file a return for 2006 but must file for 2007 to
receive the stimulus payment.