Low-income, recipients of Social Security and veteran’s benefits urged to file tax return
-Economic stimulus payments only processed if tax return filed-


The City’s Department of Community Initiatives (DCI) is advising local residents that the only way to receive an economic stimulus payment this year is to file a 2007 tax return.

While most wage earners do not need to take extra steps other than filing a return, people who are not normally required to file must do so this year in order to receive a rebate. This includes low-income workers, those who receive Social Security benefits and those who receive veteran’s disability compensation, pension or survivor benefits.

Taxpayers in these groups will need to file a special version of the Form 1040A. In addition, they need to write the words “Stimulus Payment” at the top in order to ensure processing.

“Everyone is anticipating a tax rebate this year but we want to make sure that those who need it the most understand the process. We don’t want them to miss out on this extra income simply because they didn’t know that they needed to file a return this year,” said Dennis Campa, director of DCI.

The IRS will use the 2007 tax return to determine eligibility and calculate the amount of the tax rebate. To qualify, citizens need to have earned at least $3,000. Individuals who do not pay tax and who have less than $3,000 of qualifying income will not be eligible for a stimulus payment.

In most cases, the rebate will equal the amount of tax liability on the return with a minimum of $300 for individuals or $600 for taxpayers who file jointly and a maximum of $600 for individuals or $1,200 for taxpayers who file jointly. In addition, parents who are eligible for a stimulus payment will receive an additional $300 for each qualifying child.
 

Local residents who earned $45,000 or less can file their tax return for free through the Volunteer Income Tax Assistance program. “Our VITA volunteers are up-to-date on all of the new guidelines so we can easily assist those groups who are most affected,” added Campa.

To date, VITA volunteers from City-operated sites have processed 19,367 tax returns, an increase of 18 percent from this same time last year. DCI estimates that more than $39.8 million has already been returned to local residents who filed using free VITA services.

Low and moderate-income workers, including veterans and those receiving Social Security benefits, can get free tax help through April 15. To find the nearest VITA site, call the United Way help line at 227-4357 or 2-1-1. For more information on other services provided by DCI, call 207-8198 or visit www.sanantonio.gov/comminit.