BREAKING TAX NEWS: September 23,
2008
October 15, 2008 is the 2007 Tax
Return Deadline; Don’t Let Stimulus Payment Pass You by
WASHINGTON, September 23, 2008 — The Oct. 15, 2008, deadline
to file a 2007
income tax return and to receive an economic stimulus payment this
year is fast approaching.
This is the deadline for the estimated 4.3 million retirees
and disabled veterans who may be eligible to receive a stimulus payment but
who normally don’t file a tax return.
It’s also the deadline for the approximately 10 million
people who earlier this year received extensions to file their 2007 income
tax return.
“Don’t let the economic stimulus payment pass you by,” said
IRS Commissioner Doug Shulman. “If you want the payment this year, you
should file by Oct. 15. We recognize that there may be older Americans and
disabled veterans who still have not filed for their stimulus payment. If
you know of a friend, neighbor or family members who may be in that
situation, please give them a hand if they need it.”
The IRS has accounted for nearly 80 percent of the
Social Security and
Veterans Affairs beneficiaries initially identified as potentially
eligible.
The IRS has yet to hear from an estimated 4.2 million people
who receive certain Social Security benefits and 178,000 who receive certain
Veterans Affairs benefits. The agency twice has sent to this group letters
that enclosed a
Form 1040A, a sample tax form and instructions for sending the tax
return to the IRS. If these instructions have been misplaced, the fastest
way to obtain a
Package 1040A-3 is
to go to
IRS.gov or to
local IRS offices. There are more than
400 local offices nationwide
where people can get assistance in preparing the return as well. A return
also can be prepared and submitted for free through
Free File which is
available at IRS.gov.
People must file a tax return in order to receive an
economic stimulus payment even if they normally are not required to file a
return.
For eligible individuals, the Economic Stimulus Act of 2008
provided for stimulus payments of up to $600 ($1,200 for married couples) or
the amount of the taxpayer’s 2007
net income tax liability,
whichever is less. There also is a $300 payment for each qualifying child.
There is an income phase-out, starting at
adjusted gross income amounts
of $75,000 for single taxpayers and $150,000 for married taxpayers.
For people who have no tax liability and who have no
requirement to file a tax return because their income is too low or
nontaxable there is a stimulus payment of up to $300 ($600 for married
couples) plus the $300 payment for each qualifying child. However, people in
this situation must have at least $3,000 in qualifying income from earned
income, nontaxable combat pay as well as certain benefits from Social
Security, Veterans Affairs and Railroad Retirement.
Qualifying income from Social Security includes retirement,
disability and survivor benefits.
Supplemental Security Income is not a qualifying income. Qualifying
income from Veterans Affairs includes disability compensation,
disability pension and survivor benefits. Qualifying
Railroad Retirement Board
benefits include the social security equivalent portion of Tier I benefits.
Also, those who are dependents or eligible to be dependents on another’s tax
return are not eligible. People must have a valid Social Security Number
unless their spouse is a member of the military.
The IRS has partnered with numerous organizations, including
AARP, Center on Budget and
Policy Priorities, National Council on Aging, Community Action
Partnership, United Way, National League of Cities, National Disability
Institute and National Community Tax Coalition. These organizations also are
conducting outreach efforts to older Americans and veterans.
Also, each year, there are approximately 10 million
taxpayers who request an extension from the April 15 deadline to file their
tax return. The extension applies only to filing a return, not to paying any
taxes owed. Oct. 15 is a final deadline for these extension taxpayers to
avoid any penalties. They, too, may be eligible for the economic stimulus
payment but must file a 2007 return by Oct. 15 to receive the payment this
year.
By law, the IRS cannot disperse any
economic stimulus payments after Dec. 31. However, people who may be
eligible for an economic stimulus payment can claim a credit in 2009 by
filing a 2008 income tax return.
As of Aug. 29, the IRS has issued $93 billion in economic
stimulus payments to 114.8 million individuals and families.
Those who already have filed a 2007 tax return but who have
not yet received an economic stimulus payment, can check on the status of
your payment by going to “Where’s
My Economic Stimulus Payment?” on the IRS.gov Web site.
People also can call
1-866-234-2942 and, after selecting English or Spanish language,
should press 2 to check on the status of the stimulus payment. People will
need their Social Security Number (the one listed first on the 2007 return),
filing status (single, married, etc) and the number of exemptions claimed on
the return.
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