Chatham residents must file tax return to get economic stimulus payments

Posted Thursday, February 21, 2008

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Pittsboro, NC - Chatham County residents who don’t normally need to file a federal tax return may want to do so this year to receive the federal government’s economic stimulus payments. “Seniors or others living on Social Security payments or small pensions may not have filed a return for years, but they may be eligible for at least $300 payments if they do file,” said Angel Dennison, director of the Chatham Council on Aging.

 

According to a news release from the Internal Revenue Service, even those who don’t usually file a tax return because they have little or no tax liability may qualify for a minimum payment of $300 or $600 (joint returns), but only if their tax return shows at least $3,000 in qualified income and as long all those filing have valid Social Security numbers.

Qualified Income Sources

Qualified income includes Social Security payments, Railroad Retirement benefits, veteran’s disability compensation, any pension or survivor benefits from Veterans Affairs, self-employment income and any salary or wages earned. However, Supplemental Social Security income (SSI) cannot be counted to meet the $3,000 in qualifying income.

 

Filing Recommendations

The IRS recommends the following for those receiving Social Security, Railroad Retirement, and certain veterans’ benefits and have at least $3,000 in qualified income:

 

First, if you have already filed a 2007 tax return showing at least $3,000 of qualified income, you do not have to anything else. The IRS will calculate your economic stimulus payment and send it to you.

 

Second, if you have already filed a 2007 return showing less than $3,000 in qualified income, but did not list your Social Security, Railroad Retirement or certain veterans’ benefits, you should file a Form 1040X to list those non-taxable benefits if it gives you $3,000 in qualified income.

 

 

Third, if you are not required to file a 2007 return but have qualified income of at least $3,000, you should file a tax return this year. You can use Line 14a of tax form 1040A or Line 20a of tax form 1040 to report your eligible income. Please note the form lines just mention Social Security, but use these lines to also report Railroad Retirement or veterans’ benefits.

 

Stimulus Payments

“If you are eligible for a payment, all you have to do is file a 2007 tax return and the IRS will do the rest,” said Acting IRS Commissioner Linda Stiff. The IRS will use information on the 2007 tax return filed by the taxpayer to determine eligibility and calculate the amount of the stimulus payments.

 

Once tax returns are filed, the IRS will notify taxpayers of their payment amount and when they will likely receive it. The IRS advises taxpayers to save this notice as it may be needed for their 2008 tax returns.

 

Tax Form Scams

The Chatham County Council on Aging cautions seniors and others to be wary of tax rebate scams, such as people calling to volunteer their help in preparing your tax return or helping you claim your tax payment.

 

“They likely will ask you for confidential information, such as your Social Security number or annual income. We advise residents not to respond to these phone calls, mailings or emails offering to help you with your return or to get your economic stimulus payment,” Dennison said.

 

 

The IRS asks all taxpayers to report attempted scams by emailing information to phishing@irs.gov or call 1-800-829-1040.

 

 

Help with Returns

Seniors in the county can get help with tax returns from several sources. “We do have a few remaining slots at the Council on Aging for assistance with tax returns, but they are filling up fast,” Dennison said. Call 542-4512 and ask for Evelyn White.

 

Other sources of free help for seniors and low-income residents include:

• The Volunteer Income Tax Assistance (VITA) program provides help to low-income and moderate-income taxpayers. Call 1-800-906-9887 to locate the nearest VITA site. Some retired state or local government employees (with incomes of $40,000 or less per year) can get appointments for free VITA assistance at specified State & Local Governmental Credit Union offices as part of the VITA program.
• 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. Several towns in the area, such as Sanford, Chapel Hill and Cary, have sites. To find the closest AARP Tax Aide site, call 1-888-227-7669.

Tax Forms

The two senior centers in the county (Siler City and Pittsboro) both have copies of the basic forms and instructions, including 1040 and 1040A forms. One of these forms is usually the only one required for those who don’t usually have to file a tax return.

Some post offices, such as Siler City, may have copies of these basic forms.

 

Taxpayers can order current year tax forms and publications for mail delivery by calling toll-free 1-800-829-3676.

The hearing impaired should call 1-800-829-4059. Taxpayers also can download and print forms at the IRS website: http://www.irs.gov/formspubs/lists/0,,id=97817,00.html