Many non-filers eligible for 2007 Tax Return Rebate
This entry was posted on 2/17/2008 12:49 AM and is filed under uncategorized.
The IRS has clarified the status of non-filers and the 2007 Tax Return Rebate. Some low income people are not required to file a return. Often times there is no tax benefit for them filing, but 2007 will be an exception for many of them.
The IRS recently stated on its website:
"The law also allows for payments for select taxpayers who have no tax liability, such as low-income workers or those who receive Social Security benefits or veterans' disability compensation, pension or survivors' benefits received from the Department of Veterans Affairs in 2007. These taxpayers will be eligible to receive a payment of $300 ($600 on a joint return) if they had at least $3,000 of qualifying income.
Qualifying income includes Social Security benefits, certain Railroad Retirement benefits, certain veterans' benefits and earned income, such as income from wages, salaries, tips and self-employment. While these people may not be normally required to file a tax return because they do not meet the filing requirement, the IRS emphasizes they must file a 2007 return in order to receive a payment."
The IRS further stated that: "Recipients of Social Security, certain Railroad Retirement and certain veterans' benefits should report their 2007 benefits on Line 14a of Form 1040A or Line 20a of Form 1040. Taxpayers who already have filed but failed to report these benefits can file an amended return by using Form 1040X. The IRS is working with the Social Security Administration and Department of Veterans Affairs to ensure that recipients are aware of this issue."
Some filers may not have used line 14a or 20a as they are not required to do so by the IRS when their Social Security is not taxable. Low income filers should review their situation. I'd consider any problems one might have receiving the rebate, correctable.
Many retired people with lower incomes will benefit from this rebate. The rebate is automatic for people who file a return.
As usual, there are limits and qualifications for the rebate. Some higher income taxpayers will not receive a rebate check, as the IRS states on its site: "Payments to higher income taxpayers will be reduced by 5 percent of the amount of adjusted gross income above $75,000 for individuals and $150,000 for those filing jointly."
