Rocking Chair Squeaks – April 2008

It is April 2008 and almost daily on a local television station there is a crawl warning me that my television may stop working on February 17, 2009.

While the above statement may sound quite ominous, it is a true statement. After that date, older analog televisions will no longer be able to receive over the air programming. The federal government has established that date as the date broadcast television stations must switch over to broadcasting solely a digital signal. There are some exceptions such as low power stations or translator stations, but this change will involve most television stations throughout the country.

What this means is that if you currently receive your television signal over the free airways on an analog television set (do you have an older set using “rabbit ears”?) you will need a converter box between your television and the antenna to continue receiving the over the air signal. If you are using a digital television with “rabbit ears” to receive over the air signals, then supposedly you will be ok without a converter box.

U.S. Senate Special Committee on Aging Chairman Herb Kohl (D-WI) held a hearing, Sept. 19, 2007 concerning the upcoming DTV transition and its disproportionate effects on America’s seniors. “Seniors are particularly vulnerable to slipping through the cracks of the transition. Not only are they more likely to rely on free over-the-air analog TV signals, but for many seniors television is their only link to the outside world,” said Chairman Kohl. “Without adequate planning and coordination, seniors will be left in the dark.”

The government has set up a coupon program to help Americans switch to digital. They are offering up to two (2) coupons good for $40 each towards the purchase of converter box that allows for the digital signal to be viewed on an analog computer.

All of this sounds good, and at least my local television station is promoting the switch well in advance, but there is a potential audience that could be affected by this coupon program but won’t be able to take advantage of it. This is because the program allows for 2 coupons per Household. It is possible that retirees and seniors are living in nursing homes or group homes where they don’t subscribe for cable television and rely upon their older analog to keep them in touch with their local news or syndicated programming. Since there could possibly be more than two televisions in the Household, everyone may not be able to get their coupon.

If you know anyone in this situation, you may wish to explore these two web sites for more information: DTVtransition.org and DTV2009.gov

Rocking Chair Squeaks – March 2008

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.