Stimulus pkg & social security

[msbaysalr]

Do we need to be filing tax returns for individuals that only have SS income and do not normally file? The stimulus pkg includes refunds to them. If the rebate is based on the 2007 tax return, it looks like they should be filing a return. I am sure as soon as Bush signs the bill, people are going to be asking. I had one to bring their monther's ss form today to file a return to get the rebate!

[Randall]

Per www.irs.gov

File 2007 returns for those who normally file.

IRS will work with Vets Affairs & Social Security for the others. Not sure what that means but it appears they may not have to file returns if they normally would not.

IRS should keep us updated.

[JohnH]

I believe I'd ask the client do they want to pay $120 to have me file the return that may not be needed, or do they want to wait a few weeks to find out if it's necessary to file? Either way, the $300 check won't be here until May or later, so why pay the upfront money if it isn't necessary?

Another alternative, if it turns out that they don't get the payment automatically, might be to file a 2008 return in early 2009 and claim the unpaid credit at that time. This is a refundable credit and there will be people who are entitled to it but who don't receive their check in 2007 for a variety of reasons. Those people will be able to file a 2008 return reconciling that they did not receive the payment and it will then be paid to them on the basis of that 2008 return.

(For what it's worth, I don't think people having only SS income will need to file in order to get their $300 per person. It should be fairly easy for IRS to wash out the SSA recipients who file a return and send a check to the remainder.)

[tilt]

Here's a good link to an explanation of the Bill. Pages 4 & 5 deal directly with the rebates. But please note at the top of page 5, "In no event may the Department of Treasury issue checks after December 31, 2008."

http://www.house.gov/jct/x-16-08.pdf

[JohnH]

It is true that direct rebate checks will not be issued after 12/31/08, but there will still be rebate-related refunds issued on 2008 income tax returns for those who qualified for the rebate but failed to receive a check during 2008. (See the last paragraph at the bottom of page 4)