The Internal Revenue Service said that even people who do not normally file tax returns because of their low incomes would need to file this year in order to receive an economic stimulus payment.
President Bush has signed the economic stimulus package into law. According to the IRS, the return must show at least $3,000 in qualifying income. Low-income workers, Social Security recipients, disabled veterans and retired railroad workers who might not otherwise need to file a tax return must do so in order to receive the tax rebate.
Payments range from $300 to $600 for individuals and $600 to $1,200 for joint filers. Taxpayers may also receive $300 for each qualifying child. In most cases, low-income recipients will get $300 each, or $600 for joint filers.
"Some people receiving Social Security and veterans' benefits may not realize they will need to file a tax return to get the stimulus payment," said Acting IRS Commissioner Linda Stiff. "To reach these people, the IRS and Treasury will work closely with the Department of Veterans Affairs, the Social Security Administration and key beneficiary groups on outreach efforts."
Filers will also need to have a valid Social Security number, not an Individual Taxpayer Identification Number. The ITIN is often issued to those who are unable to get a Social Security number, such as undocumented workers. The recipient also cannot be claimed as a dependent on any other filer's tax return. Also ineligible are those who file a Form 1040-NR, 1040-PR or 1040-SS. The return must be filed on a 1040, 1040A or 1040EZ.
Payments will be processed through Dec. 31. The IRS has been budgeted $202 million to handle the rebate checks. The IRS expects to process an additional 10 to 20 million returns this year as a result of the rebate. Payments to higher-income taxpayers will be reduced by 5 percent of the amount of adjusted gross income above $75,000 for individuals and $150,000 for those filing jointly.
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access