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Social Security Disability Income (SSDI) Recipients May be Eligible to Receive Economic Stimulus Check
Social Security Disability Income (SSDI) Recipients May be Eligible to Receive Economic Stimulus Check
Disability advocates and people with disabilities and their families should know that people with disabilities may be eligible for the check even if they don’t owe any taxes for 2007.
You do not have to have any tax liability for the year to be eligible for the stimulus check, but you DO HAVE TO FILE A TAX RETURN TO GET THE CHECK.
For example, John Smith got $4,000 in Social Security Disability benefits in 2007 and received a 1099-SSA. He is not legally required to file a tax return and he doesn’t have to pay taxes on the $4,000. But if he files a return he will get an economic stimulus check.
- How do people qualify for a stimulus tax rebate check?
- I get SSDI. How do I file for the check?
- Fill out IRS Form 1040A. The Form 1040EZ doesn’t have a place to put Social Security, VA or retirement benefits, so it doesn’t work as well. You can get the form at a public library or your post office, or print it from the IRS website, www.irs.gov.
- WRITE ‘ECONOMIC STIMULUS PACKAGE’ ACROSS THE TOP OF YOUR 1040A.
- On Line 14 of Form 1040A put in how much SSDI you got for the year.
- The IRS says you will get your check weeks and even months more quickly if you have it deposited directly into your bank account. To do that, fill out Lines 44b and 44d of the 1040A. (For a checking account - the routing number is on the left side of your check and your account number is on the right. For a savings account, call your bank to get the routing number.)
Generally a person had to have more than $3,000 in income during 2007. Even if a person does not have any earned income they can still qualify for a stimulus tax rebate check if their Social Security retirement and disability benefits, Veterans Affairs (VA) benefits, and/or railroad retirement benefits equal at least $3,000 annually.
Supplemental Security Income benefits (SSI) do NOT count as income, but a person who gets both SSDI and SSI may still qualify if the SSDI totaled more than $3,000 in 2007.
- I get both SSI and SSDI. How do I know how much I got of each?
If you get SSDI, you should have gotten a 1099-SSA form. Only your SSDI will show on that form; not your SSI. So use that number for Form 1040A, Line 14.
- I’ve never filed a tax return before because I don’t have to. Does that matter?
No, it doesn’t matter whether you’ve ever filed before. But you do have to file this year if you want to get the economic stimulus check, even if you don’t owe any taxes.
- How much money will I get?
In most cases, a single person will get a payment ranging from $300 to $600. A couple will get a payment ranging from $600 to $1200. Payments increase by $300 for families with dependent children under the age of 17.
- By what date does the 2007 tax return have to be filed and when will the checks be received?
The IRS encourages filing a return if possible, by the regular April 15 deadline to get the rebate check in May 2008. Those filing later than April 15, with or without a tax-filing extension, may delay receipt of the stimulus check. Those who qualify for a stimulus check will receive one by the end of 2008 if they file by October 15, 2008. No rebate checks will be issued after 2008 ends.
Getting your stimulus money will be much, much faster if you fill out Lines 44b and d of your 1040A. See Question 3, above.
- Will the stimulus payment affect my eligibility for Food Stamps, SSI or other needs-based benefits programs?
Receiving a payment under the stimulus package does not effect income eligibility for or the amount of needs-based benefits programs (i.e. Food Stamps or SSI). Specifically, the payment does not count as income in the month it is received. However, it will count as a resource (asset) 60 days after the month in which it was received. So if you don’t want it to count as a resource 60 days later, spend it.
- A person I am helping file a 1040A cannot sign her name. What do I do?
The IRS says that a person can sign an “X” on the 1040 if it is witnessed by two other people.
- Is a person with a disability who is listed as a dependent on someone else’s tax return eligible for the stimulus check?
No.
- I already filed my tax return. I didn’t know I could count SSDI, so I didn’t reach $3,000 in income. What do I do now?
File an amended return, Form 1040X, and follow the directions at Question 3, above.
- This is so confusing. Where can I get help?
You can get free help from Volunteer Income Tax Assistance. Call call 1-800-906-9887 to find the nearest site or go to the following website for a list of places in Michigan where VITA helps: www.michiganeic.org/MichiganVITA_sites_Jan_29_2008.pdf.
You can also click here to download a copy from our website. If you are older than 60, AARP will help you also. Call 1-800-227-7669 for the nearest site.