SENIORS AND DISABLED

Congress recently approved an economic stimulus plan featuring tax rebates.  You must file a 2007 Income Tax Return to get your payment under this plan.  While many seniors and disabled individuals do not have to file a return because of their low income, they will want to file a return before April 15, 2008, to get their payment.

Twelve million seniors ordinarily do not have to file a tax return because as a single person their income is below $10,050 or as a married couple their income is below $18,550.  If a senior has qualifying income of at least $3,000 in 2007 the senior will get a rebate of $300 for a single person and $600 for a married couple even if they pay no tax.  Qualifying income includes wages, Social Security benefits, certain veterans benefits, and railroad retirement benefits.

Seniors can report their income on line 20a on Form 1040 or Line 14a of Form 1040A.  Seniors ordinarily would not report their Social Security income on this line if it is not taxable, but the rebate changes this for this year only.

Seniors who have filed their 2007 return who have not reported $3,000 in income should file an amended return using Form 1040X.  Seniors who have reported $3,000 on their return already do not have to do anything else.  They will get the rebate payment in May or June of this year.

Taxpayers with more than $3,000 of earned income in 2007 will get a rebate of $600 for an individual and $1,200 for a married couple.  Parents will also receive $300 for each child under age 17.

These payments begin to phase out when your adjusted gross income exceeds $75,000 for a single person or $150,000 for a married couple.  Please visit the IRS website www.irs.gov for additional information or see your accountant.