PSRC Says Government Rebate Recipients Still Need to File Tax Return to Qualify

Matthew Hersh

In an effort to help offset a slowing economy, the Internal Revenue Service is expected to send tax rebate checks to over 130 million households beginning this May and continuing throughout the summer, and the Princeton Senior Resource Center announced this week that a key recipient demographic, fixed-income seniors, needs to be vigilant in order to be assured of a rebate check.

Up to 20 million Americans who rely primarily on Social Security income qualify for a rebate check, but, according to Princeton Senior Resource Center Executive Director Susan Hoskins, those who did not file 2007 tax returns because their income was under the lax limit may run into difficulty securing their rebates.

The non-filing tax limit for individuals over 65 is $10,050 per year, and $19,600 for couples over 65 filing jointly.

However, if any party has a valid Social Security number and has a qualified income of at least $3,000, a tax return must be filed in order to receive the tax rebate, Ms. Hoskins said.

“A number of people in our community have not been filing tax returns because they are under the threshold,” Ms. Hoskins said. “Part of our goal is to look out for the most vulnerable seniors, and low income is part of what makes people vulnerable.”

According to Ms. Hoskins, qualified income includes earned income, Social Security or Railroad Tier 1 benefits, Veterans Disability or Pension, and Survivor benefits from the Department of Veterans Affairs.

People can file their tax return for this any time through October, Ms. Hoskins said, but the AARP, which is providing tax assistance, will only give aide through April 15. “If people want that assistance, they need to make an appointment,” Ms. Hoskins said, adding that individuals making an appointment must bring a proof of Social Security income, either through a December cost of living increase statement, or a 1099 form with the pink section. Ms. Hoskins added that a direct deposit bank statement is not sufficient because it does not account for a Medicare deduction.

In most cases, Ms. Hoskins said, payments will range between $300 and $600, with a $300 increase for families with dependent children under age 17. Payments max out at $1,200.

Receiving a payment under the stimulus package does not affect eligibility for needs-based benefits programs, such as food stamps and Medicaid. Moreover, the rebate is not regarded by the IRS as income in the month it is received and is not considered an asset for 60 days after the month it was received.

For more information, and for free tax aid for individuals over 60, call AARP at (888) 227-7669 or visit www.aarp.org. For information on the Princeton Senior Resource Center, call (609) 924-7108, or visit www.princetonseniors.org.

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