WASHINGTON
— The Internal Revenue Service today urged taxpayers eligible for the economic
stimulus payment to file their tax return now in order to get their payment in
a timely manner.
This IRS reminder applies to taxpayers
yet to file their 2007 income tax returns as well as retirees, disabled veterans,
low-wage workers and others who normally are not required to file a return but
who must do so this year to receive an economic stimulus payment.
“The
quickest way to receive your refund and your economic stimulus payment is to file
early, file electronically and use direct deposit,” said IRS Commissioner
Doug Shulman.
Starting in May, the IRS will begin sending
economic stimulus payments of up to $600 ($1,200 for married couples) to people
who earn less than $75,000 ($150,000 for married couples). There is also is an
additional payment of $300 for each eligible child younger than 17.
People
who have no tax filing requirement may still be eligible to receive a payment
of $300 ($600 for married couples) if they have at least $3,000 in qualifying
income. Qualifying income includes any combination of earned income, nontaxable
combat pay and certain benefits from Social Security, Veterans Affairs and Railroad
Retirement. Individuals in this category may also be eligible for the additional
$300 payment for each qualifying child.
The IRS offers these
tax tips for taxpayers:
- File now: Don’t wait until the
11th hour on April 15 if you want your stimulus payment on time. Your tax return
must be processed by April 15 for you to receive your payment according to the
payment schedule. Filing a paper return? Write ‘Stimulus Payment’ at
the top of your form ONLY if you do not normally file a tax return and are filing
just to receive a stimulus payment.
- Use Free File: IRS
Free File is a public-private partnership with 19 tax software companies that
make their tax preparation software and electronic filing available for free to
certain taxpayers. Anyone with an adjusted gross income of $54,000 or less, and
that’s 97 million taxpayers, is eligible to use Free File, available only
through www.irs.gov.
- Use
IRS e-file: If you don’t qualify for IRS Free File, you should still
file your tax return electronically. Taxpayers can use IRS e-file through paid
preparers or over-the-counter software. It’s the fastest way to process your
tax return, which means it’s the quickest way for you to receive your refund
and your economic stimulus payment.
- Use direct deposit:
It’s the best way to receive your refund and your economic stimulus payment.
Even if you owe taxes, complete the blanks for direct deposit and, if you are
eligible, the IRS will transmit your stimulus payment electronically. The IRS
will begin making stimulus payments into direct deposit accounts on May 2. The
agency will mail paper checks starting May 16.
- Need more time:
If you can’t make the April 15 deadline, remember to file a Form 4868, the
automatic extension of time to file. This will give you until October 15 to submit
a 2007 tax return.
- Avoid Scams: If you receive unsolicited
email or telephone calls from anyone purporting to be from the IRS, it’s
probably a scam. Don’t click on any links; don’t answer any questions.
Forward the emails or report the calls to phishing@irs.gov.
This
year, there are millions of people who are not required to file a tax return but
who must file a 2007 income tax return to let the IRS know they are eligible for
a stimulus payment. Those are people who have no tax liability but who have at
least $3,000 in qualifying income.
The $3,000 in qualifying
income, for those who have no tax liability, must come from one or a combination
of these sources: earned income (wages, tips, salary) nontaxable combat pay and
certain benefits from Social Security, Veterans Affairs and Railroad Retirement.
Interest income, capital gains or Supplemental Security Income payments do not
qualify as income.
For people in this category, there are
a few extra tips:
- Super Saturday: Approximately 320 IRS offices
will be open Saturday, March 29 from 9 a.m. to 3 p.m. to help prepare returns
for people who are filing only so they can receive their stimulus payment. There
is a state by state list of sites on IRS.gov.
- Use
Free File: Several Free File partners are offering tax software programs just
for people who are filing solely to receive the economic stimulus payment. There
is a special page on IRS.gov: Free File – Economic Stimulus Payment.
- Package
Form 1040A-3: This also includes tax tips, a sample Form 1040A and a blank
Form 1040A that can be completed and mailed to the IRS. Filing a paper return?
You must write “Stimulus Payment’ at the top of the Form 1040A.
- Need
more time: If you can’t make an April 15 deadline, you automatically
have until October 15 to file a tax return solely to receive an economic stimulus
payment. You do not have to file a form to be granted an extension. However, you
must file by October 15 so the IRS can process your return and issue a stimulus
payment before the end of the year.
Free help is available
for low-income and older Americans. Volunteer tax preparation sites can be found
by calling 1-800-906-9887.
