(The Internal Revenue Service issued the following on March 5.)
DID YOU RECEIVE RAILROAD RETIREMENT BENEFITS LAST YEAR?
You may be entitled to an economic stimulus payment, often referred to as a rebate, from the federal government.
HOW MUCH WILL I GET?
You could get up to $300 (or $600 if you are married and file a joint return). You also may get $300 more for each qualifying child. To qualify, a child must be under age 17 as of December 31, 2007.
WHAT DO I HAVE TO DO?
The payment is automatic when you file your 2007 federal tax return.
If you got railroad retirement benefits last year, and you normally don’t have to file a return, you’ll need to take a special step to get the payment. This year, file a Form 1040 or Form 1040A and report at least $3,000 in qualifying income. Most Railroad Retirement Tier I benefits are considered qualifying income. They are shown in Box 5 of the Form RRB-1099 you’ve received for 2007.
Caution! — None of the benefits reported on a Form RRB-1099-R are considered qualifying income for this purpose.
WHAT IF I DON’T HAVE $3,000 IN QUALIFYING RAILROAD RETIREMENT BENEFITS?
You can add the amount of your qualifying benefits to other qualifying income, such as wage earnings or certain benefits paid by Social Security or the Department of Veterans Affairs, to reach the $3,000 requirement. However, Supplemental Security Income (SSI) does not count as qualifying income for the stimulus payment.
WHAT DO I FILL OUT ON THE TAX FORM?
Enter your name, address, Social Security number, and filing status on the form. Then just enter the amount of benefits reported to you in Box 5 of Form RRB-1099 (and in Box 5 of Form SSA-1099 if you received one) on Line 14a of Form 1040A or Line 20a of Form 1040. If you don’t have Form RRB-1099, you can estimate your benefits by taking the monthly amount of Tier I benefits you received last year and multiplying it by the number of months you received a check. If you need to include earned income such as wages to reach the $3,000 qualifying level, enter that amount on Line 7 of Form 1040A or 1040. And last, you should write the words “Stimulus Payment” at the top of the 1040A or 1040.
WHEN WILL I GET MY MONEY?
The IRS will send out the payments beginning in early May.
IS THAT ALL?
Just about. The payment is not taxable and it will not affect the amount of railroad retirement benefits you receive. For all the information you’ll need on the payments and how to get them, go to the official IRS Web site at www.irs.gov.