Still Time for Retirees and Disabled Veterans to Get Stimulus Checks

As of June 20, the Treasury Department had sent out 9.071 million checks under the Economic Stimulus Act totaling $6.919 billion. However, some people who are eligible to receive a check have not applied for it by filing a 2007 income tax return. Only 75% of retirees and disabled veterans eligible for checks have filed to claim them; about 5.2 million potential recipients in this group have not.

Filing 2007 returns

The IRS is reaching out to this group of individuals to inform them of the need to file a return in order to receive a stimulus check. They have until October 15, 2008, to file a 2007 income tax return if they are eligible for a check and want to receive it. The return must be filed even though they are not ordinarily required to file a return because their income is below the filing thresholds.

Those below the filing threshold can use a special Form 1040A to claim their rebate check (only a few lines of this form must be completed). Just because a return is filed now to receive a rebate check does not mean that a return will have to be filed for 2008 or later years.

Understanding the rebate checks

Retirees and disabled veterans who have no tax liability and no tax filing requirement may be eligible for a minimum payment of $300 ($600 for married couples). To be eligible for a stimulus check, they must have at least $3,000 of qualifying income, which is any combination of earned income (from wages or self-employment), nontaxable combat pay, and certain benefits from Social Security, Veterans Affairs, and Railroad Retirement.

They should understand that the receipt of a rebate check has no impact on any federal benefits to which they may be entitled or are receiving. The stimulus check itself isn't taxed.

Source: IR-2008-80, 6/19/08