The only income I receive is Social Security Retirement benefits. Do I qualify for an economic stimulus?
by: Legal Aid Service of Northeastern Minnesota-Duluth
A legal question and answer column for seniors.
DEAR SENIORS LEGAL LINE:
I heard about the Economic Stimulus check that President Bush and the U.S. Congress recently announced. The only income I receive is Social Security Retirement benefits. Do I qualify for this check?
Signed, Eleanor
DEAR ELEANOR:
Social Security benefits count as qualifying income under the Economic Stimulus package. If you had at least $3,000 of qualifying income in 2007, you should file a 2007 Income Tax Return in order to receive your Stimulus check. Qualifying income includes Social Security benefits, Veteran's Affairs (VA) benefits, and/or Railroad Retirement benefits, as long as they total at least $3,000 annually. Congress specifically excluded Supplemental Security Income (SSI). Thus, SSI does not count towards the $3,000 minimum qualifying income.
To qualify, you must file a 2007 Federal Income Tax Return on IRS form 1040 or 1040A. You should do this even if you normally would not file.
The Stimulus package was created to help spur the slowing economy. The IRS will send these checks to over 130 million households beginning in May of 2008. According to the National Council on Aging, up to 20 million Americans whose sole source of income is Social Security benefits qualify for a Stimulus check.
The IRS will use the 2007 Federal Tax Return to determine if you are eligible, and will calculate the basic amount of the payment. The payment will be a minimum of $300 for individuals ($600 for joint filers) to a maximum of $600 for individuals ($1,200 for joint filers). An additional $300 will be given for each qualifying child in your household.
The checks will be mailed starting mid-May 2008. Everyone who files a 2007 Federal Tax Return and qualifies will receive the check by the end of 2008 if they file by October 15, 2008. Checks are mailed by the IRS based on the last two digits of the filer's Social Security Number; checks will not be mailed on a first come first served basis.
Receiving the payment under the Stimulus package will not affect eligibility for, or the amount of, needs based benefits programs such as Food Stamps or Medical Assistance (also known as Medicaid). The payment will not count as income in the month it is received, and will not count as a resource (asset) for 60 days after the month in which it was received.
If you are a low to moderate income senior, and you need help filing your tax return, you may wish to contact a local free tax preparation organization. In Duluth, Community Action Duluth can help with your tax return if your income is at or below $39,000 per year. For more information about the Community Action program, contact them at 218-726-1665. The Tax Counseling for the Elderly (TCE) program provides free tax help to persons aged 60 and older. To find these sites, call the AARP Tax Aid site at 1-888-227-7669, or visit the AARP website at www.aarp.org. The Volunteer Income Tax Assistance (VITA) program also provides help to persons who have low to moderate income. They may be reached at 1-800-906-9887.
This column is written by the Senior Citizens' Law Project. It is not meant to give complete answers to individual questions. If you are 60 years of age or older and live within the Minnesota Arrowhead Region, you may contact us with questions for legal help by writing to: Senior Citizens' Law Project, Legal Aid Service of Northeastern Minnesota, 302 Ordean Bldg., Duluth, MN 55802. Please include a phone number and return address. To view previous articles, go to: www.lasnem.org. Reprints by permission only.
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