I am going to use Rocking Chair Squeaks as a means of periodically communicating what I believe to be important issues having a significant impact on those that are retired and those that are nearly retired.
We all know the sound of a rocking chair on a wooden floor and the squeaking sound it makes. However, if you rock long enough you tend to put the squeak out of mind and just enjoy the relaxation. In the Rocking Chair Squeaks I will be presenting thoughts related to issues to which we individually may find a need to respond. But on other issues, there may be no action required and we can continue on with living life after retirement.
March 2008 Squeak
Under the Economic Stimulus Act of 2008, more than 130 million American households will receive economic stimulus payments beginning in May. The only way to get one is to file a federal tax return for 2007. This filing requirement also applies to some people who do not normally file, including many low-income people and recipients of Social Security, certain benefits received from the Department of Veterans Affairs and certain Railroad Retirement benefits.
On the surface this appears to be very simple. But as I thought about this and share with others, I discovered that there may be a population or audience that may not be getting the message. Here I refer to those individuals that reside in nursing homes and their social security check may be going directly to the nursing home. If this happens to be the recipient’s only income or their other income is such that they don’t have to normally file an income tax return, then they may not be aware of this provision.
My mother-in-law happens to be in this category. We called the nursing home today because we weren’t certain whether she was receiving Social Security or SSI. SSI doesn’t qualify for the economic stimulus payment. The individual we spoke to indicated they had heard about the plan but wasn’t aware of any details or how it applied to the residents of the nursing home where she worked even though the majority of the residents are social security recipients. She suggested we call back tomorrow to speak with one of the social workers assigned to the nursing home.
This response came from an employee of a nursing home in a small town in Texas. I only mention this as there may be pockets of our retired population that may not be receiving this information or may not be aware that it applies to them.
I am including a copy of the Social Security Flier provided by the Internal Revenue Service the for your reference and would encourage you to follow up with your loved ones if they happen to fall in this category to ensure they file a return for 2007. I am also providing a link to a sample completed Form 1040A if you wish to help them complete the form. Also, pass this information on to others you know that have not be required to file an income tax return but has income in excess of $3,000.
For social security recipients this payment has no impact on past or future benefits and should go directly to them.
