Publication 4665 (3-2008) ECONOMIC STIMULUS PAYMENT GUIDE FOR BENEFIT RECIPIENTS
Publication 4665 (3-2008)
- Institutional AuthorsInternal Revenue Service
- Jurisdictions
- LanguageEnglish
PURPOSE
Did you receive Social Security or Railroad Retirement benefits in 2007?
Did you receive disability compensation, disability pension or survivors' benefits from the Department of Veterans Affairs in 2007?
This guide is a reference source for individuals who receive Social Security, Railroad Retirement, and/or certain Veterans' benefits to determine if they are eligible for an economic stimulus payment. It is specifically designed for recipients of these benefit payments that otherwise have no federal income tax filing requirement and are filing a return solely to obtain the economic stimulus payment.
This guide is for individuals who receive Social Security, Railroad Retirement, and/or certain Veterans' benefits who must file a 2007 return in order to receive a payment under the Economic Stimulus Act of 2008. These individuals are not otherwise required to file federal tax return, but must file a return to receive the economic stimulus payment.
By following the steps and guidance in this publication, these individuals (or volunteers assisting them) can determine if they are eligible for an economic stimulus payment.
Individuals (or volunteers assisting individuals) who receive Social Security, Railroad Retirement, and/or certain Veterans' benefits that are not otherwise required to file a federal income tax return, but must file a return for the IRS to determine their eligibility for an economic stimulus payment.
Eligible individuals will begin receiving the stimulus payments in May 2008. Stimulus payments will be direct deposited for taxpayers selecting that option when filing their 2007 Federal income tax returns.
You must file a 2007 tax return to receive the stimulus payment even if your income is low or much of your income is tax-free. If possible, file the return by the regular April 15 deadline. If you file after April 15, with or without a tax-filing extension, your payment will be delayed. If you qualify for a payment, you can insure that you get it by filing your return by October 15, 2008.
Economic Stimulus Payment Eligibility
Step by Step Guidance for Recipients of Social Security, Railroad Retirement, and Veterans' Benefits who normally do not need to file a Federal Income Tax Return
INSTRUCTIONS: Use the step by step guidance below to determine if you are eligible for an economic stimulus payment if you received Social Security, Railroad Retirement and/or Veterans' benefits. The following pages include information about the Economic Stimulus Payments to assist in answering the questions below and on where you can go to get Free Tax Help.
STEP 1:
Do you have a Federal Income Tax Filing Requirement?
See Attachment # 1 (page 8) - Table 1-1, 2007 Filing Requirements for Most Taxpayers.
YES - Go to Step 8 NO - Go to Step 2
STEP 2:
Can you be claimed as a dependent on someone else's return?
YES - Go to Step 9 NO - Go to Step 3
STEP 3:
Is your Filing Status "Single" or "Married Filing Jointly"?
See Attachment # 1 (page 8) - Filing Status
YES - Go to Step 4 NO - Go to Step 8
STEP 4
Do you have a valid Social Security Number? (NOTE: Both individuals listed on a married filing jointly return must have valid Social Security Numbers to qualify for a stimulus payment.)
YES - Go to Step 5 NO - Go to Step 9
STEP 5:
Do you have qualifying income (certain Social Security, Railroad Retirement, and Veterans' benefits in any combination) equal to or exceeding $3000? NOTE: Use the 2007 Form SSA-1099 for Social Security benefits. Use the 2007 Form RRB-1099 for Railroad Retirement benefits. For qualifying VA benefits, use the total of all Veterans' disability compensation, disability pension or survivors' benefits received from the Department of Veterans' Affairs in 2007.
YES - Go to Step 6 NO - Go to Step 9
STEP 6:
Do you think you may be eligible for an additional stimulus payment for a qualifying child or children?
YES - Go to Step 8 NO - Go to Step 7
STEP 7:
You may be eligible for the 2008 Economic Stimulus Payment.
To receive the payment, you must file a 2007 return in order to notify the IRS of your qualifying income. The IRS will determine eligibility, figure the amount and issue the payment automatically.
Certain Social Security, Railroad Retirement, and Veterans' benefit recipients (or the volunteer assisting these individuals) should use the mock-up version of the Form 1040A as a guide to fill out the actual Form 1040A for requesting the stimulus payment.
See Attachment # 2 (page 9) -- Example of Form 1040A (Mock-up)
See Attachment # 3 (page 11) -- Where Do You File?
• Mailing addresses for a paper return.
If you have questions or need assistance with your return - Go to Step 8.
STEP 8:
If you have a filing requirement and need assistance with the preparation of your return or to determine if you are eligible for the economic stimulus payment, you can:
• Visit the IRS Web site --
http://www.irs.gov• Speak with an IRS Representative at 1-800-829-1040
• Visit a Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) Site
• Visit an IRS Taxpayer Assistance Center (TAC)
• Visit a paid professional tax preparer
STEP 9:
You are not eligible for the 2008 Economic Stimulus Payment.
FACTS ABOUT THE 2008 STIMULUS PAYMENTS
Starting in May, the United States Treasury will begin sending economic stimulus payments to more than 130 million individuals. The vast majority of Americans who qualify for an economic stimulus payment will not have to do anything other than file their 2007 individual income tax return to receive their payment this year. They will not have to complete applications, file any extra forms or call the Internal Revenue Service to request the payment. The IRS will determine eligibility, figure the amount and issue the payment automatically.
Individuals who might not otherwise be required to file a 2007 tax return will need to file a federal tax return this year to receive the stimulus payment. The return must show at least $3,000 in qualifying income. Some low-income workers and recipients of Social Security, certain veterans' benefits and certain Railroad Retirement benefits may qualify for economic stimulus payments this year from the federal government.
Generally, stimulus payments will be direct deposited for taxpayers selecting that option when filing their 2007 tax returns.
The IRS will use the 2007 tax return to determine eligibility and calculate the basic amount of the payment. In most cases, the payment will equal the amount of tax liability on the return with a maximum amount of $600 for individuals ($1,200 for taxpayers who file a joint return).
Even those who have little or no tax liability may qualify for a minimum payment of $300 ($600 if filing a joint return) if their tax return reflects $3,000 or more in qualifying income. For the purpose of the stimulus payments, qualifying income consists of earned income (such as wages and net self-employment income that is includable in taxable income and combat pay received by a member of the Armed Services of the United States, if the recipient chooses to treat combat pay as earned income), as well as Social Security or certain Railroad Retirement benefits and veterans' disability compensation, disability pension or survivors' benefits received from the Department of Veterans' Affairs in 2007. Supplemental Security Income (SSI) does not count as qualifying income for the stimulus payment.
Low-income workers who have earned income of at least $3,000 but do not have a regular filing requirement must file a 2007 tax return to receive the minimum stimulus payment. Similarly, Social Security recipients, Railroad retirees, and those who receive the veterans' benefits mentioned above must file a 2007 return in order to notify the IRS of their qualifying income.
Individuals with no filing requirement who file a tax return to qualify for the economic stimulus payment will not get a tax bill. People in this category will not owe money because of the stimulus payment.
To be eligible for a stimulus payment, taxpayers must have valid Social Security Numbers. Anyone who does not have a valid Social Security Number, including those who file using an Individual Taxpayer Identification Number (ITIN) or an Adoption Taxpayer Identification Number (ATIN) is not eligible for this payment. Both individuals listed on a married filing jointly return must have valid Social Security Numbers to qualify for a stimulus payment.
Eligibility for the stimulus payment is subject to maximum income limits. The payment amounts will be reduced by 5 percent of the amount of income in excess of $75,000 for individuals and $150,000 for those with a Married Filing Jointly filing status.
Individuals who pay no tax and who have less than $3,000 of qualifying income will not be eligible for the stimulus payment.
ADDITIONAL PAYMENTS FOR PARENTS AND OTHERS WITH QUALIFYING CHILDREN
Parents and anyone else eligible for a stimulus payment may also receive an additional $300 for each qualifying child (subject to income phase-outs). To qualify, a child must be a "qualifying child" for purposes of determining the Child Tax Credit and must have a valid Social Security Number.
Anyone who is not eligible for the basic payment amount due to the phase-out provision or any other exception will not be eligible for this additional amount for children.
SPECIAL CIRCUMSTANCES FOR RECIPIENTS OF SOCIAL SECURITY, RAILROAD RETIREMENT AND CERTAIN VETERANS' BENEFITS - CERTAIN BENEFITS COUNT TOWARD QUALIFYING INCOME
Individuals who receive Social Security, Tier 1 Railroad Retirement and certain Veterans' benefits may have to follow special filing requirements in order to receive the stimulus payment:
Social Security benefits and Tier 1 Railroad Retirement benefits may be subject to income tax, depending on your other income and marital status. Generally, if these benefits are your only income, they are not taxable. Veterans' disability compensation, disability pension, and survivors' benefits received from the Department of Veterans Affairs are not subject to income tax. However, the economic stimulus law passed in February 2008 contains a special provision allowing recipients of these benefits to count them toward the qualifying income requirement of $3,000 and thereby qualify for the stimulus payment.
This means individuals can count those benefit payments toward his or her qualifying income to reach the $3,000 requirement, even though the individual would not otherwise owe taxes on such income.
Those who are not required to file a 2007 return but whose total qualifying income including Social Security, Tier 1 Railroad Retirement and certain Veterans' benefits would equal or exceed $3,000 should file a return reporting these benefits on Line 14a of Form 1040A or Line 20a of Form 1040 to establish their eligibility.
For now, taxpayers in this group filing a tax return can only file a paper copy of the Form 1040A or Form 1040. The IRS is working to update its systems to accept electronic versions of these limited-information returns for taxpayers who otherwise have no need to file a tax return. The IRS is also working with the software community to handle these returns electronically at a future date.
The addresses for where to mail paper returns depends upon where you live. See the back cover of the Form 1040A or 1040 Instruction Booklet for mailing addresses. The mailing address for the Form 1040A, Stimulus Payment Return, is included in this Guide as an Attachment.
REPORTING BENEFITS FOR PURPOSES OF QUALIFYING INCOME
For purposes of meeting the qualifying income requirement, the following benefits need to be reported in any combination on Line 14a of the Form 1040A or Line 20a of Form 1040.
• Social Security benefits from the 2007 Form SSA-1099. Social security benefits include monthly retirement, survivor, and disability benefits. They do not include supplemental security income (SSI) payments. People who do not have a Form 1099 may estimate their annual Social Security benefit (prior to any deductions for withheld taxes or Medicare premiums) by taking their monthly benefit, multiplying it by the number of months during the year they received the benefits. For example: If you received payments of $900 per month for six months, you would enter $5,400 on Line 14a of Form 1040A or Line 20a of Form 1040.
• Railroad Retirement benefits from the 2007 Form RRB-1099. These are commonly called the social security equivalent benefit (SSEB) portion of the Tier 1 railroad retirement benefits.
• The sum of Veterans' disability compensation, disability pension or survivors' benefits received from the Department of Veterans' Affairs in 2007 - People are allowed to estimate their annual benefit by taking their monthly annual Veterans' benefit, multiplying it by the number of months during the year they received benefits. For example: If you received payments of $500 per month for eight months, you would enter $4,000 on Line 14a of Form 1040A or Line 20a of Form 1040.
NOTE: Line 14a of the Form 1040A and Line 20a of Form 1040 are designated for Social Security. However, to qualify for the economic stimulus payments, these lines should also be used to include any qualifying Railroad Retirement or Veterans' benefits.
In addition, taxpayers in these groups should write the words "Stimulus Payment" at the top of the Form 1040 or 1040A.
EXAMPLE (MOCK-UP VERSION) OF FORM 1040A
For recipients of Social Security, Tier 1 Railroad Retirement, and certain Veterans' benefits who do not normally need to file, the IRS has released an example of a Form 1040A. This example highlights the simple, specific sections of the return that can be filled out by people in these categories to qualify for a stimulus payment. The example or mock-up version of the Form 1040A is designed to be used as a guide for filling out an actual Form 1040A. These benefit recipients only need to report their qualifying income on Form 1040A.
The example (mock-up version) of the Form 1040A is included in this Guide as an Attachment. The illustration shows the limited number of lines that will need to be filled out for recipients of Social Security, certain Railroad Retirement and certain veterans' benefits. The key line for reporting their 2007 benefits is on Line 14a of Form 1040A. In addition, the amount of any wage or net self-employment earnings to reach the $3,000 qualifying income level needs to be entered on Line 7 of Form 1040A. Do not complete any of the shaded entry spaces on the form you file, even if you would normally enter an amount in any of these spaces.
In summary, these individuals need to enter the following on their returns:
• Name(s), address, SSN(s)
• Filing Status and exemptions
• Qualifying income
• Direct Deposit information if applicable
• Signature(s) and date
• Write "Stimulus Return" at the top of the Form 1040A and mail the return to the IRS.
Recipients of Social Security, Railroad Retirement, and VA benefits, who otherwise are not required to file a return, WILL NOT OWE MORE TAX by filing a Stimulus Payment Return.
The following are not eligible for a stimulus payment in 2008:
• Individuals who do not file a 2007 tax return
• Individuals whose net income tax liability is zero and their qualifying income is less than $3,000
• Individuals who can be claimed as a dependent on someone else's return
• Individuals who do not have a valid Social Security Number
• Individuals who file Form 1040NR, 1040PR, or 1040SS. These returns are normally filed by Nonresident Aliens, residents of Puerto Rico and residents of the U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands (CNMI). Residents of U.S. possessions will be receiving their rebates directly from the possessions.
Qualifying Income includes earned income such as wages and other compensation (including net earnings from self-employment), social security benefits (including monthly retirement, survivor, and disability benefits), Tier 1 railroad retirement benefits, and disability compensation, disability pension and survivor benefits from the Department of Veterans Affairs. Qualifying income does
notinclude:
• Dividends, interest and capital gains income
• Supplemental Security Income (SSI)
• Non-veterans or non-Social Security pension income (such as those from Individual Retirement Accounts) and Tier 2 Railroad Retirement benefits
OTHER CONSIDERATIONS
Stimulus payments will be subject to offset against outstanding tax and non-tax liabilities in the same fashion as regular tax refunds.
Stimulus payments are not taxable. You will not owe tax on your payment when you file your 2008 federal income tax return. The stimulus payment you receive in 2008 will not reduce or increase your refund when you file your 2008 return.
In addition, the stimulus payments will not count toward or negatively impact any other income-based government benefits, such as Social Security benefits, food stamps and other programs.
If you do not qualify for a stimulus payment based on your 2007 return and your tax situation is different in 2008, it is possible you may qualify for the special benefit on your 2008 return. The 2008 tax instructions will include a worksheet to help those who did not qualify for a payment or those who received a reduced amount to determine if they can obtain a benefit when they file their 2008 tax returns next year.
Low and moderate-income workers, including veterans, can get free tax help through the Volunteer Income Tax Assistance (VITA) program. 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.
IRS Taxpayer Assistance Centers (TAC) are your source for personal tax help when you believe your tax issue cannot be handled online or by phone and you want face-to-face tax assistance. For the Taxpayer Assistance Center closest to you, call 1-800-829-1040 or visit IRS.gov. To search IRS.gov for the Taxpayer Assistance Center closest to you, enter your 5-digit ZIP Code into the Office Locator- Walk-In Site Search
RESOURCES USED IN THIS ECONOMIC STIMULUS PAYMENT GUIDE
View the following Fact Sheets, News Releases, and Answers to Frequently Asked Questions on IRS.gov.
•
FS-2008-15, Facts about the 2008 Stimulus Payments.
• FS-2008-16, Stimulus Payments: Instructions for Low-Income Workers and Recipients of Social Security and Certain Veterans' Benefits.
• IR-2008-18, IRS Will Send Stimulus Payments Automatically Starting in May; Eligible Taxpayers Must File a 2007 Tax Return to Receive Rebate.
• IR-2008-21, More Information on Stimulus Payments Posted to IRS.gov; New Details for Recipients of Social Security, Veterans Benefits
• Questions and Answers on the stimulus payments.
FOR ADDITIONAL INFORMATION
The IRS.gov Web site is the best source for additional information and answers to questions regarding the stimulus payments. The site will soon have an online tool which will allow taxpayers to calculate the amount of their advance payment and to check on the status of their specific payment.
Use the following quick link: Economic Stimulus Payment Questions? for more information on the stimulus payment and when and how to get it.
Table 1-1. 2007 Filing Requirements for Most Taxpayers
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THEN file a return if
IF your filing status AND at the end of 2007 your gross income
is... you were...* was at least...**
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single under 65 $ 8,750
-----------------------------------------------
65 or older $10,050
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married filing under 65 (both spouses) $17,500
jointly*** -----------------------------------------------
65 or older (one
spouse) $18,550
-----------------------------------------------
65 or older (both
spouses) $19,600
----------------------------------------------------------------------
married filing
separately any age $ 3,400
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head of household under 65 $11,250
-----------------------------------------------
65 or older $12,550
----------------------------------------------------------------------
qualifying widow(er)
with under 65 $14,100
-----------------------------------------------
dependent child 65 or older $15,150
----------------------------------------------------------------------
* If you were born on January 1, 1943, you are considered to be age 65
at the end of 2007.
** Gross income means all income you received in the form of money,
goods, property, and services that is not exempt from tax, including
any income from sources outside the United States (even if you may
exclude part or all of it). Do not include social security benefits
unless you are married filing a separate return and you lived with
your spouse at any time during 2007.
*** If you did not live with your spouse at the end of 2007 (or on the
date your spouse died) and your gross income was at least $3,400, you
must file a return regardless of your age.
======================================================================
NOTE: Even if you do not have to file a return, you should file a federal income tax return to claim a refund of withheld taxes or if eligible to claim EIC, additional child tax credit, or other benefits.
Filing Status:
There are five filing statuses:
• Single
• Married Filing Jointly
• Married Filing Separately
• Head of Household, and
• Qualifying Widow(er) with Dependent Child
Single:
Your filing status is single if, on the last day of the year, you are unmarried or legally separated from your spouse under a divorce or separate maintenance decree, and you do not qualify for another filing status.
Married Filing Jointly: You can choose married filing jointly as your filing status if you are married and both you and your spouse agree to file a joint return.
[The following graphic has not been reproduced:
2007 Michaels' Example Form 1040A, U.S. Individual Income Tax Return]
Attachment # 3. Where Do You File?
If you are filing a Form 1040A, Stimulus Payment Return, mail your return to the address shown below that applies to you.
----------------------------------------------------------------------
IF you live in... THEN use this address if
you:
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Alabama, Delaware, Florida, Georgia, North Department of the
Carolina, Rhode Island, South Carolina, Treasury Internal
Virginia Revenue Service Center
Atlanta, GA 39901-0099
----------------------------------------------------------------------
District of Columbia, Maine, Maryland, Department of the
Massachusetts, New Hampshire, New York, Treasury Internal
Vermont Revenue Service Center
Andover, MA 05501-0099
----------------------------------------------------------------------
Arkansas, Connecticut, Illinois, Indiana, Department of the
Michigan, Missouri, New Jersey, Ohio, Treasury Internal
Pennsylvania, West Virginia Revenue Service Center
Kansas City, MO
64999-0099
----------------------------------------------------------------------
Kentucky, Louisiana, Mississippi, Tennessee, Department of the
Texas, APO, FPO Treasury Internal
Revenue Service Center
Austin, TX 73301-0099
----------------------------------------------------------------------
Alaska, Arizona, California, Colorado, Department of the
Hawaii, Idaho, Iowa, Kansas, Minnesota, Treasury Internal
Montana, Nebraska, Nevada, New Mexico, North Revenue Service Center
Dakota, Oklahoma, Oregon, South Dakota, Fresno, CA 93888-0099
Utah, Washington, Wisconsin, Wyoming
----------------------------------------------------------------------
American Samoa, nonpermanent residents of Department of the
Guam or the Virgin Islands*, Puerto Rico (or Treasury Internal
if excluding income under Internal Revenue Revenue Service Center
Code section
933), dual-status aliens, a Austin, TX 73301-0099
foreign country: U.S. citizens and those USA
filing Form 4563
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* Permanent residents of Guam should use: Department of Revenue and
Taxation, Government of Guam, P.O. Box 23607, GMF, GU 96921; permanent
residents of the Virgin Islands should use: V.I. Bureau of Internal
Revenue, 9601 Estate Thomas, Charlotte Amalie, St. Thomas, VI 00802.
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