CDS News
Paying Taxes and the Federal Economic Stimulus plan
It is particularly important that people with disabilities file taxes this year to qualify for the Federal Economic Stimulus plan. People with no net income tax liability will usually get a minimum payment of $300 for a single person or $600 for a married couple filing jointly, as long as they have qualifying income of at least $3,000. To figure qualifying income, add together the following amounts:
- Wages that are reported on Form W-2.
- Net self-employment income.
- Social Security benefits reported in box 5 of the 2007 Form 1099-SSA, which would have been received in January 2008. People who do not have a Form 1099-SSA may estimate their annual Social Security benefit by taking their monthly benefit and multiplying it by the number of months during the year they received the benefit.
- Certain Railroad Retirement benefits reported in box 5 of the 2007 Form 1099-RRB, which recipients would have received in January 2008.
- Veterans’ benefits received in 2007, including veterans’ disability compensation and pension or survivors’ benefits received from the Department of Veterans Affairs. People who weren’t required to file a tax return can estimate their annual veterans’ benefits by taking their monthly benefit and multiplying it by the number of months during the year they received the benefit.
- Nontaxable combat pay if the taxpayer elects to include it as earned income.
- It should be noted that SSI payments to not count toward the $3,000 of qualifying income, but Social Security Disability payments do count toward this amount.
Many people with disabilities who do not normally pay taxes need to do so this year to that they can participate in this Economic Stimulus plan. More information can be found on the MIG grant homepage: www.hireabilitieshawaii.org.
