2006 Taxes:

$47,078 refunded in 2007

to local residents who e-filed with the Malden Tax Partnership

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Special Savings Account program for selected financial literacy cours participants. Check the Money Smart section of this website for more information.

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Malden, MA:  For Immediate Release                                                                            March 5, 2008

Economic Stimulus Payments are Not Considered Income

Malden, MA: 

Many people have asked how the “rebates” that will be sent by the federal government beginning in May will affect their taxes next year.  The good news is, they won’t!  It’s not considered income and next year’s tax forms will ask for the payment information but will not calculate it as income.  The answers to these and many other questions can be found on the Malden Tax Partnership website, http://taxprep.maldensquare.org.  

The IRS is NOT sending out emails or making telephone calls to taxpayers regarding the stimulus payments or any other payments. Please do NOT respond to any of these scams! 

Taxpayers who file a 2007 federal tax return will automatically receive their stimulus payment, if they’re eligible.  Eligibility requires a valid Social Security number and $3,000 of qualifying income, as well as filing a 2007 federal tax return. 

What is qualifying income?  Qualifying income includes Social Security benefits; certain Railroad Retirement benefits; certain veterans’ benefits; and earned income, such as income from wages, salaries, tips, and self-employment. 

The IRS will use taxpayers’ 2007 federal return to determine eligibility and calculate and distribute the payments.  If you designate direct deposit on your federal return, the payment will be deposited to the same account.  If you split your refund between two accounts, however, they’ll mail the stimulus payment to you. 

“The payments will be sent according to Social Security number, so filing for the payment early will not mean you receive it early.  Payments will be sent throughout the summer and into the fall or even later, so don’t spend it before you actually receive it,” warns Claire Murray, VITA Coordinator for the Malden Tax Partnership.  “We are prepared to assist anyone who needs to file a federal return just for the stimulus payment, as well as those who are filing a full federal and state return.” 

What about taxpayers who don’t typically file a federal return?  Many people who don’t file a federal return are still eligible for a smaller stimulus payment.  This includes some people who have no tax liability and typically do not need to file a federal return.  Many low income workers and people who receive Social Security benefits or Veterans compensation, pension, or survivors’ benefits may still be eligible if they had at least $3,000 of qualifying income in 2007. 

What form should I use to file for this stimulus payment?  The IRS is accepting a modified version of Form 1040A which should take 5-10 minutes to complete.  The VITA Volunteers preparing taxes at the Cyber Café @ Malden Square can help anyone complete this form.  The Cyber Café will set up walk-in times for late March and early April just for the stimulus payment

What if I become eligible after I have filed my 2007 federal tax return or become eligible in 2008?  Anyone who becomes eligible after filing their 2007 federal return can file a modified return using Form 1040X.  Anyone who was not required to file a 2007 federal return, but becomes eligible after the April 15 filing deadline, can claim the stimulus payment on their 2008 federal return.

The Cyber Café @ Malden Square is providing free tax preparation services for low-income residents through April 14, 2008 by appointment only.  All returns will be e-filed.  Call the appointment line at 866-833-2823 (toll free) to schedule an appointment. 

To see if you qualify as low income, visit their website, http://taxprep.maldensquare.org.  More information about the economic stimulus payment program is also available at the IRS Economic Stimulus Payment Center, http://www.irs.gov/irs/article/0,,id=177937,00.html.

Tax preparation is conducted by IRS-sponsored and trained volunteers at the Cyber Cafe @ Malden Square,
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