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February 28, 2008
IRS RELEASES NEW INFORMATION FOR TAX REBATES
After my last article on the Economic Stimulus Tax Rebates was published, the IRS issued additional guidance on how to receive your rebate check. The two major points raised were:
1) You must file a federal tax return for 2007 to get your stimulus check.
2) Provide direct deposit information on your 2007 tax return, even if you owe taxes. People who provide the direct deposit information will be the first to receive their stimulus checks.
For the thousands of people who stopped filing income taxes, because their income is too low, YOU MUST FILE A 2007 INCOME TAX RETURN, if you want to receive a rebate check. This applies to many recipients of Social Security, Railroad Retirement or Veterans benefits and others who do not make enough money to normally file a tax return. When you provide your tax information to your tax preparer, please include the amount of real estate taxes paid in 2007, the amount you paid for water and sewer in 2007, or the amount you paid for rent in 2007. This information will be used to calculate if you are also eligible for the Massachusetts Senior Circuit Breaker. This could provide you up to $900, in addition to what you receive for the stimulus rebate check.
The IRS, in the near future, will be sending information to recipients of Social Security and Veterans benefits informing them of the need to file a 2007 income tax return. Social Security recipients should make sure that they show the gross amount of Social Security benefits received, even if only part or none of it is taxable, to ensure that you receive the stimulus rebate check.
If you are in a hurry to get your stimulus check, be sure to include direct deposit information on your 2007 tax return, even if you are not getting a refund on your 2007 income tax return. The IRS will be looking for this direct deposit information. Those who provide this information will be the first to receive the stimulus rebate checks.
If you have moved since filing your 2007 income tax return, you should file form 8822 with the IRS and a change of address notice with the Post Office. Without this information, your check could be returned to the IRS as undeliverable.
Don’t get scammed! The IRS website has a list of the latest email and telephone scams and can be seen at www.IRS.gov. They also predict that new scams will be seen by taxpayers about these stimulus rebate checks. The IRS will not send you an email and they will not telephone you. The scammers will call, or email you, and generally will ask you for your bank account information and social security number. If you are contacted by either of these methods, do not give away any of your personal information. Please don’t become a victim.
This article gives general information and not specific advice on individual matters. Persons wanting individualized advice on matters discussed should contact an advisor experienced in those matters. To the extent this article provides information on legal matters, it is based on law in effect in Massachusetts on the date of posting (laws in effect in other states are often quite different).
Ronald H. Surabian is a CPA and attorney who works at the Elder Law Center in Saugus, Massachusetts. He also holds Masters in accounting and a Masters in tax law. He currently serves on the board of directors of the Massachusetts Chapter of the National Academy of Elder Law Attorneys. If you have any questions please call me at the Elder Law Center, One Essex Street, Saugus, MA 01906 (781)233-4444. To view this or any prior article, please visit our web site at www.elderlawcenter.org