Washington-- Senator Evan Bayh today encouraged all Hoosiers eligible for tax relief under the economic stimulus package to file a 2007 tax return, including those who would not otherwise be required to file. The Internal Revenue Service (IRS) will issue payments based on the information in 2007 tax return documents.

“Hoosiers should get their fair share of the economic stimulus package,” Senator Bayh said. “This legislation is designed to boost our economy and ease some of the financial challenges facing American families today. By filing a 2007 tax return statement, Hoosiers who are eligible will get the tax relief promised in this economic stimulus package.”

Bayh encourages Hoosiers, especially Social Security beneficiaries or those receiving veterans’ benefits, to file a 2007 tax return even if they normally do not. Hoosiers who receive Social Security benefits, veterans’ disability compensation, pension or survivors’ benefits from the Department of Defense and have at least $3,000 of qualifying income may be eligible for a tax relief payment, even if they do not owe taxes. These taxpayers with no tax liability would be eligible for a $300 individual payment or a $600 payment for a joint return.

Most taxpayers need only file their regular tax return statements to receive their stimulus payment. The IRS estimates that in most cases, stimulus payments will equal the amount of a person’s tax liability on a tax return, with a maximum amount of $600 for individuals and $1,200 for joint returns. In addition, families can receive $300 for each child who qualifies for the child tax credit.

For higher income households, payments will be reduced by five percent of the amount of adjusted gross income above $75,000 for individuals or $150,000 for joint filers. For example, a family with $160,000 of taxable income in 2007 would receive a $700 payment (the $1,200 payment is reduced by $500—5 percent of the $10,000 of income that exceeds the cap).

“Even someone without tax liability can benefit from the stimulus,” Bayh said. “No forms other than your tax return are needed to get a payment, which is why it is essential that every Hoosier who had at least $3,000 in income file a tax return in 2007.”

Stimulus payments will be delivered beginning May 2008 at the conclusion of the current tax season. The IRS estimates that over 130 million taxpayers will receive stimulus payments. For more information, visit the IRS’ Web site: http://www.irs.gov/index.html. Hoosiers needing assistance filing their 2007 tax returns should contact their local IRS tax advocate. For more information, visit: http://www.irs.gov/advocate/.

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