It is surprising to find out that not everybody has heard about the economic stimulus package.  But that must be the case because the IRS announced that around 5.2 million retired and disabled veterans have not filed a return to claim their rebate.

 

The $152 billion stimulus package contains a special category for individuals who receive Social Security or veterans benefits and are not usually required to file an income tax return.  As long as the recipients of these benefits earned at least $3,000 in qualifying income they are eligible for a $300 rebate as individuals or a $600 rebate for married couples.  Whether or not you owed income tax last year, you must file a 2007 tax return by October 15 to claim the rebate.

 

So if you are a veteran and you qualify for this rebate, but you have not filed your 2007 tax return, do not be scared if the Internal Revenue Service contacts you soon.   They are not going to audit you.  In fact, the IRS is planning on sending a letter to the qualifying retired and disable veterans later this summer notifying them of their eligibility and explaining how to claim the rebate.

 

To be eligible you must have earned at least $3,000 in qualifying income in 2007.  This can include job wages, certain social security benefits, non-taxable combat pay, and certain veterans benefits.

 

Social Security benefits that are considered qualifying income include Social Security retirement, disability and survivor benefits.  Veterans benefits that are considered qualifying income include disability compensation, disability pension and survivor benefits.

 

If you determine that you do qualify for the rebate and you want to file now rather than waiting until October 15, there are several methods available for filing your return.

 

• AARP provides a simple and interactive form for completing your 1040.  Your information is automatically posted to the correct lines on the 1040 after you answer a short list of questions.  You can find the form on the AARP website or go directly to the Stimulus Payment Tool.
• Use the IRS Free File program for the Economic Stimulus Payment.  The IRS and its Free File Partners are offering free tax preparation and electronic filing services for people filing just to receive their stimulus payments.  For more information and a list of the Free File Partners please go to Free File- Economic Stimulus Payment.
• Complete and file form 1040A.  You can obtain this form from the IRS website, at most public libraries or at a Tax Payer Assistance Center.

 

The IRS would like you to remember that the Economic Stimulus Payment is not taxable and you will not have to file a tax return next year because of this rebate.

 

Finally, be sure to watch out for scams.  The IRS will not send you an email claiming you can arrange for a direct deposit by clicking on a link and they will not call you requesting your Social Security Number or bank account number.