People with Disabilities Still Have Time to File for Rebate Payment

Though the tax deadline has passed — those who don’t normally file a return have until Oct. 15 to file for stimulus payment; unclaimed rebates also may be claimed in 2009.

(BELLEVILLE, Ill.) - People with disabilities are among those who still have time to file a 2007 form in order to receive the federal tax rebate. Allsup, which represents people nationwide for Social Security Disability Insurance (SSDI) benefits, provides additional information on filing for the rebate and tax-related questions for people with disabilities at Allsup.com.

The IRS has been issuing payments in recent weeks and reminding retirees, disabled veterans and those who normally do not file tax returns that they have until Oct. 15 to file a form and receive an economic stimulus payment.

“Some individuals may be hesitating because of concerns about accepting the money. However, the stimulus payments are not taxable and will not affect your 2007 or 2008 tax returns in any way,” said Paul Gada, a tax attorney and personal financial planning director for Allsup. “The IRS also has assured that the stimulus payments will not count toward or negatively impact any income-based government benefits, such as Social Security benefits, food stamps and similar programs.”

More than 8.5 million working-age adults either rely on SSDI benefits as a primary source of income or are awaiting a decision to receive their benefits. Most of these individuals have experienced a significant change in their medical well-being and their financial health.

“Experiencing a disability often leads to a substantially reduced income level for people and their families,” said Mr. Gada. “That’s why it’s important that you don’t allow this opportunity for additional income to pass you by.”

The amount of the stimulus payment is $300 for qualifying single individuals receiving just Social Security or veterans-disability benefits and $600 for married couples. However, the payment amount could be more for a couple where one individual is also working (up to a $1,200 rebate) or where a single person with a disability had earned other income (up to a $600 rebate). Also, anyone getting a rebate may be eligible to get an extra $300 for each of their children who were under age 17 at the end of 2007.

People with no tax filing requirement, but with at least $3,000 in qualifying income, should file a Form 1040A. The return should include name, address, dependents, qualifying income amount, direct deposit information and signatures. Those eligible, including their qualifying children, must have Social Security numbers.

Qualifying income includes earned income, nontaxable combat pay and certain Social Security, Veterans Affairs and Railroad Retirement payments. These Social Security benefits include disability, retirement and survivor payments, but not Supplemental Social Security Income (SSI). These Veterans Affairs benefits include disability compensation, disability pension and survivor payments. These Railroad Retirement payments include the Social Security equivalent portion of Tier 1 benefits.

More information can be found at irs.gov, where the IRS offers a Free File – Economic Stimulus Payment section of information.

Keep in mind that if you did not qualify for this year’s government rebate based on your 2007 federal income tax return, all is not lost. You still could become eligible if your tax situation changes in 2008. In that case, the economic stimulus payment can be claimed next year on your 2008 tax return, according to the IRS. Look for a worksheet in the 2008 tax instructions to help figure this out.

Allsup, Belleville, Ill., is a leading nationwide provider of financial and healthcare related services to people with disabilities. Founded in 1984, Allsup has helped more than 100,000 people receive their entitled Social Security Disability Insurance and Medicare benefits. Allsup employs approximately 500 professionals who deliver services directly to consumers and their families, or through their employers and long-term disability insurance carriers.