Spotlight: Rebates will boost returns sent to IRS

Rebates will boost returns sent to IRS

By Anna Marie Kukec | Daily Herald Staff
Published: 2/23/2008 12:27 AM

The IRS this year could see an additional 25 million returns from special groups of taxpayers who ordinarily don’t file.
Those people need to file this time to qualify for their tax rebate check, money coming from the federal $168 billion economic stimulus package signed into law this month. These taxpayers include:

• low-income workers
• recipients of Social Security benefits,
• recipients of Railroad Retirement benefits,
• recipients of certain pension, disability or death benefits paid by the Department of Veterans Affairs.

“Many of these people don’t normally need to file a tax return, but this year they will need to file a tax return to get an economic stimulus check,” IRS Commissioner Linda Stiff said Friday.

These people should see if they have enough to reach the $3,000 qualified income requirement. If they reach $3,000 and file a tax return, they can get a check, she said.

The IRS is working with the Social Security Administration and Veterans Affairs to ensure their beneficiaries understand the filing requirement and how to report their benefits.

“We are also finalizing plans for a special mailing to recipients of Social Security and veterans’ benefits who don’t normally file a tax return,” Stiff said. “This mailing will include special information to help them file a 1040A tax return. The 1040A is the easiest way for people in this group to file.”

People in these categories should seek help through community organizations, such as the Kenneth Young Center in Schaumburg, said Mark La Spisa, co-founder of Vermillion Financial Advisors Inc. in South Barrington.

“These people will miss filing and, therefore, miss getting a refund they would be entitled to receive,” said La Spisa. “And once April 15 comes and goes, they may not even realize they were entitled to receive a check.”

Nationwide, about 130 million taxpayers are expected to file returns this year. They could receive their rebate checks around May 2 if they use direct deposit. Or a paper check could arrive a week later in the regular mail, Stiff said.

President Bush announced the tax rebate about two weeks ago. He outlined typical payments ranging from $300 to $600 for individuals and $600 to $1,200 for joint filers, depending on their income. Taxpayers also could get $300 for each qualifying child.

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Rebates will boost returns sent to IRS – Vermillion Financial Advisors, Inc.

Rebates will boost returns sent to IRS