Economic Stimulus Payments to Veterans

People receiving benefits from the Department of Veterans Affairs for disability, pension or survivors' benefits, listen up: The IRS and Treasury are working closely with the Department of Veterans Affairs along with beneficiary organizations to ensure that all eligible individuals know what to do to receive a stimulus payment.

Normally, certain veterans' payments are not subject to income tax. However, the economic stimulus law passed in February contains a special provision allowing recipients of certain veterans' benefits to count those benefits toward the qualifying income requirement of $3,000 and thereby qualify for the stimulus payment.

For those who do not normally file a tax return, the IRS has prepared an 8-page informational package that includes instructions, a sample Form 1040A and a blank Form 1040A - everything needed to file a tax form today. The eligibility requirements are as follows:

Basic Eligibility Requirements

• You have, or your family has, at least $3,000 in qualifying income from, or in combination with, Social Security benefits, certain Veterans Affairs benefits, Railroad Retirement benefits and earned income. Supplemental Security Income (SSI) does not count as qualifying income for the stimulus payment.
• You and any family members listed on your tax return have valid Social Security numbers.
• You are not a dependent or eligible to be a dependent on someone else's federal tax return. (The same must be true of any family members claimed on your return.)

To Claim Your Payment

If you normally don't file a federal tax return but must file one this year solely to claim your economic stimulus payment, you should file by Oct. 15, 2008, to ensure that you receive the payment this year. Find out where to send your tax return.

It will generally take a minimum of eight weeks after you file your return to get your stimulus payment.

For Those Who Have Already Filed

Some recipients of the benefits described above may have filed a 2007 tax return reporting at least $3,000 in qualifying income. They do not need to do anything else. They will begin receiving their stimulus payments in early May.

Others may need to amend a previously filed tax return to include benefits to reach the $3,000 qualifying income level. Adding these benefits on an amended tax return will not increase an individual's tax liability but will establish eligibility for the stimulus payment. Taxpayers can use IRS Form 1040X to amend a tax return in order to qualify for the stimulus payment. The amended return requires only a few simple entries. See a sample with instructions. Allow 8-12 weeks of processing time before making any inquiries about the payment.

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