Make sure vets, retirees file for stimulus payment

Jun. 22, 2008 (McClatchy-Tribune Regional News delivered by Newstex) -- If you know any veterans or retirees, ask them if they received their economic stimulus payments.

Under the Economic Stimulus Act of 2008, eligible individuals are receiving payments of up to $600 ($1,200 for married couples filing joint returns) plus $300 for eligible children younger than 17.

Payments are reduced (or phased out) for individuals with adjusted gross incomes greater than $75,000 ($150,000 married couples filing jointly).

Checks for 15,596 Fairfield County veterans and retirees are waiting in the wings, according to Dianne Besunder, IRS spokeswoman. That's the number of people who still qualify for stimulus checks but have not made claim to them, Besunder said.

Some people who don't normally need to file a tax return may not be aware that they must do so by Oct. 15 to claim the stimulus payment. Recipients of Social Security and Veterans Affairs may not normally be required to file a tax return.

To be eligible for the minimum payment of $300, you must have at least $3,000 in "qualifying income."

Qualifying income includes any combination of earned income, nontaxable combat pay and certain benefit payments from Social Security, Veterans Affairs and Railroad Retirement, Besunder said.

That includes Social Security benefits such as retirement, disability and survivor payments, but not Supplemental Security Income.

The types of Veterans Affairs benefits that are considered qualifying income include disability compensation, disability pension and survivor payments. Qualifying Railroad Retirement payments include the social security equivalent portion of Tier 1 benefits.

If you are not normally required to file a tax return, use Form 1040A to file for the stimulus payment. You will need to provide your name, address, dependents, if you have any, and the amount of qualifying income (which must be $3,000 or more). When you file the return and send it in, the IRS will calculate eligibility and the payment amount.

The IRS also encourages you to provide direct deposit information. You can find Form 1040A on www.irs.gov.

Nationwide, the IRS has made 76.5 million payments worth $63.8 billion based on 2007 tax returns processed so far. By year end, the IRS expects to issue a total of 124 million payments.

Some people may not be filing returns because they might believe that the stimulus payment might impact other federal benefits. Not so, Besunder said.

People may think that the payment itself is taxable (no, Besunder said) or that the filing means that you will need to start filing tax returns in the future (no, Besunder said).

To make sure no one misses out on the stimulus payment, the IRS will send a special letter to eligible retirees and veterans to help them make their claims. The letter will include a sample tax form and an actual tax form that people can complete and mail to the IRS.

"Some retirees and others who normally do not file a tax return may be eligible and not know it. And that's where we could use the public's help as well. If you know of a retiree or a disabled veteran who might qualify, please pass along the information to them," said Doug Shulman, IRS commissioner.

Newstex ID: KRTB-0003-26176423