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The Macomb Daily
February 21, 2008 |
Chad Selweski
Staff Writer |
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Taxes must be filed to receive rebate
Millions of seniors, low-income workers rarely file forms with IRS |
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Officials are warning that millions of seniors, disabled veterans and low-income workers must file a federal income tax return this year in order to receive the tax rebates awarded under the economic stimulus package approved by Congress.
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Many in those three groups have not filed a tax return with the IRS for years because they owe no federal taxes. But the tax-filing requirements tied to the rebates will affect an estimated 35 million low-income workers, 20 million seniors and 250,000 disabled veterans.
The rebates offer up to $1,200 per couple, plus $300 for each dependent child under age 17. But the details of the stimulus program are just now coming to light. U.S. Rep. Sander Levin visited senior centers in Roseville and Oak Park on Wednesday spreading the word about the process.
"While these individuals may not normally file returns, it is vital that anyone that believes they are eligible for a rebate file a return this year because if they do not, they will not receive their rebate," said Levin, a Royal Oak Democrat who represents most of Macomb County.
With the April 15 IRS filing deadline approaching, free tax preparation assistance for seniors and low-income households is available at nearly 20 sites in Macomb County.
Beyond the tax-filing requirement, experts are cautioning that the rebate of $600 per individual, or $1,200 per married couple, represents a maximum that depends on income earned and federal taxes owed. No rebate awarded will exceed the amount of taxes owed in 2007.
For example, a couple with an adjusted gross income - after deductions and credits - of $20,000 would receive a rebate of $930, equal to their federal tax liability.
"For many lower-income families, a promised rebate is very welcome news but we worry that many may be anticipating more than the stimulus package will deliver," said Ann Marston, president of the Michigan League of Human Services, a Lansing-based nonprofit group.
Anyone who earned at least $3,000 last year is eligible for a rebate. That includes seniors who received Social Security payments, pensions or investment income. The minimum rebate is $300 per individual, $600 per couple. That amount ratchets upward, depending on income, to the $600/$1,200 maximum.
At the income level of $75,000 for individuals, $150,000 for couples, the rebate begins to phase out.
For example, the IRS says that an individual with an adjusted gross income of $80,000 would receive a reduced rebate of $350 due to the phaseout.
For information about free tax preparation services, call (800) 906-9887.
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