Audio clip
Dan Boone
PDF: Hamilton County tax assistance sites
Nearly 500,000 Tennesseans who normally do not file tax returns will be getting a mailing next week from the Internal Revenue Service.
IRS officials urge recipients not to worry and not to disregard the package. It could help you get at least $300 for each qualified person in your home.
The federal government is trying to make sure that more than 20 million low-income and senior taxpayers who otherwise would not file a tax return for 2007 still file a return this year. The filings are required to qualify for a share of the $168 billion fiscal stimulus package adopted last month by Congress.
To get the payments under the stimulus package, people must file a tax return for 2007 indicating they have earned at least $3,000 from any combination of Society Security benefits, veterans benefits, railroad retirement benefits and earned income last year. Depending upon what was earned, taxpayers will be eligible for rebates ranging from $300 to $600 per person. There also is an additional payment of $300 for people with eligible children younger than 17.
The checks should be mailed to recipients in May, IRS spokesman Dan Boone said.
The IRS is mailing a 10-page tax package next week to Social Security recipients and veterans who otherwise might not file a tax return to give such individuals tips for completing a Form 1040A for their 2007 return.
“Some who will get this package haven’t needed to file a tax return for years or even decades but will just need a pen, a stamp and a few minutes time to complete the process,” Mr. Boone said.
Collectively, Tennesseans who didn’t file a return in 2006 but who still earned $3,000 last year in Social Security, veterans and earned income are eligible for about $150 million in rebates under the fiscal stimulus package.
Local tax assistance groups also are working to get the word out about the need for more people to file returns this year. Since President Bush signed the Economic Stimulus Act of 2008 on Feb. 13, volunteer tax preparers at AARP and Volunteer Income Tax Assistance centers in the Chattanooga area said they are handling a record number of returns this year.
“We’re probably handling five to 10 more people every day at each of our offices because of the interest in these rebates,” said Bob Alexander, a retired actuary who helps oversee AARP’s tax assistance program in Southeast Tennessee.
To help reach out to seniors with Social Security income who otherwise might not file a return, Mr. Alexander said AARP volunteers will visit the Creekside Retirement Home today and other senior facilities over the next month to help residents fill out a 2007 return.
James McKissic, vice president of programs and administration for the Urban League of Greater Chattanooga, said the 18 area VITA sites he oversees already have handled 18 percent more returns this year than last.
“We’re getting tons of phone calls from people anxious to get their rebates,” he said. “With the economy like it is right now, a lot of people need the money.”
For those who need to file a 2007 return just to qualify for the fiscal stimulus rebates, tax volunteers said they usually are able to handle such returns in only a few minutes. Those wishing to file online may find assistance at the Internal Revenue Service’s Web site, www.irs.gov, under free file options.
“Free file software providers are making their products available for the simplified filing of a tax return, and most people should be able to complete those returns in a few minutes online,” Mr. Boone said. “We hope people will help friends and family members by making them aware of the payments or even helping them fill out the forms.”
WHO GETS REFUNDS
* Anyone with income of $3,000 or more in 2007, including any combination of Social Security, veterans benefits, railroad retirement benefits and earned income.
* Any child under age 17 living with an eligible taxpayer.
HOW TO FILE FOR REBATE
* Use free file services via the Internet at www.irs.gov.
* Look for mailed package next week and fill out name, Social Security number, exemptions, filing status and 2007 annual income on 1040A form.
* Find list of free tax assistance sites for low-income people at timesfreepress.com.
