Ohio Department of Aging
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March 2008
Stimulus Dollars Require Tax Filing
Even if they aren't normally required to file a federal income tax return, older Ohioans must file a 2007 return if they want to be among the 130 million Americans who will receive an economic stimulus rebate check from the Treasury beginning in May.
Normally, certain Social Security, Railroad Retirement benefits and veterans' payments are not subject to income tax. However, the economic stimulus law passed in February contains a special provision allowing Social Security recipients and recipients of certain veterans' benefits and certain Railroad Retirement benefits to count those benefits toward the $3,000 qualifying income requirement for the stimulus payment.
For example, a taxpayer who had $500 in earned income and $2,500 in any combination of the benefits described above can count those benefit payments toward his or her qualifying income to reach the $3,000 earned income requirement, even though the individual would not owe taxes on such income. Even someone with no earned income but $3,000 or more in the benefits above could qualify.
In most cases, payments will range from $300 to $600 for individuals and $600 to $1200 for joint filers. Taxpayers may receive $300 for each qualifying child. For more information, consult the IRS Web site.
Older individuals who need to file a return this year to receive a stimulus payment may take advantage of thousands of free tax preparation sites nationwide for low-income and elderly taxpayers. Contact your Area Agency on Aging toll-free at 1-866-243-5678 for information about tax preparation assistance programs in your community.
Ohio Department of Aging