Veterans May Be Eligible for the Economic...

The recently approved economic stimulus package contains a special provision allowing Social Security and veterans benefits to count toward the qualifying income requirement of $3,000 needed to receive the stimulus payment.

Even if a veteran paid no federal income taxes in 2007, the Economic Stimulus Act of 2008 provides for payments of $300 ($600 if married filing jointly) as well as an additional payment of $300 for each qualifying child for those who qualify.

For many veterans, the previous Economic Stimulus Act had no benefit, as it excluded certain payments from counting toward the income threshold.

But a veteran may be receiving Social Security or benefits from the Department of Veterans Affairs for disability, pension or survivors' benefits. Normally, certain Social Security and veterans' payments are not subject to income tax. However, the economic stimulus law passed in February contains a special provision allowing Social Security and veterans' benefits to count toward the qualifying income requirement of $3,000 and therefore the stimulus payment.

For eligible Social Security and veterans' benefits recipients who do not normally file a tax return, the IRS has prepared a 10-page informational package (package 1040A-3) that provides instructions, a sample 1040A, and a blank Form 1040A-everything needed to file the tax form today. This information is available on the IRS website at www.irs.gov.

In order to be eligible to receive the stimulus payment, a veteran must

have at least $3,000 in qualifying income, which can be income from or in combination with Social Security benefits, Veterans' Affairs benefits, railroad retirement benefits and earned income;
have a valid Social Security number;
not have been claimed as dependents or eligible to be claimed as dependents on another's tax return; and
file a 2007 tax return (1040A).

If a veteran has already filed a return, a veteran does not need to do anything.

If a veteran needs help in filing this return, there are various options. A veteran can go to the IRS website at www.irs.gov and click on the free file icon and file it electronically for free. A veteran can call the IRS hotline at 1-866-234-2942. A veteran can also visit one of the following organizations who will prepare a veteran return for free: IRS Taxpayer Assistance Centers, Tax Counseling for the Elderly (TCE) sites, Low Income Taxpayer Clinics (LITC) or local Volunteer Income Tax Assistance sites (VITA) (call 1-800-906-9887 to locate the nearest VITA site).

For many veterans, the previous Economic Stimulus Act had no benefit, as it excluded certain payments from counting toward the income threshold.

In order to be eligible to receive the stimulus payment, a veteran must have at least $3,000 in qualifying income, which can be income from or in combination with Social Security benefits, Veterans' Affairs benefits, railroad retirement benefits and earned income; have a valid Social Security number;
not have been claimed as dependents or eligible to be claimed as dependents on another's tax return; and file a 2007 tax return (1040A).

If a veteran has already filed a return, a veteran does not need to do anything.

In order to receive the stimulus payment, a veteran must file Form 1040A with the IRS by October 15, 2008.

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