MUST file a 2007 tax return to get rebate

[Larmil]

From IR-2008-18:

"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. While these people may not be normally required to file a tax return because they do not meet the filing requirement, the IRS emphasizes they must file a 2007 return in order to receive a payment."

[quicksam]

I can see how the people on Social Security will benefit from filing a return because the social security shows up on the 1040.

But what about the VA benefits. If a person files a return and there only income is from VA benefits, then how is that return going to flag for the IRS to send out the rebate. The VA benefits doesn't show up anywhere on the return does it?

[gbroiles]

Veterans' benefits

Ordinarily no, they're not on the return, but IRS says via <http://www.irs.gov/irs/article/0,,id=179096,00.html> that the benefits should be included on line 20a of 1040 - that's the line where the gross social security amount is typically shown.

I am not sure that it's going to be easy to get tax software to include that amount on that line without screwing up other parts of the return - but those are the IRS instructions. If I were filing for a person with a mix of social security and nontaxable benefits and including the benefits on 20a generated an incorrect result, I'd probably do that return by hand (ick) unless my software provider sends me an update pretty soon to address this.

[Zee]

Thanks for the link...nice find.

[JohnH]

Opinions?

I'm wondering whether it will be worth the time & trouble to prepare a return for a one-time client with virtually no prospect for a long-term relationship, when weighed against what we can reasonably charge for this service.

I'm hoping VITA, TCE, and other organizations will gear up for this. If I can find a local contact I think I'll refer anyone who calls me to their services, unless they insist on paying the going rate. This is just off the top of my head, and I'd be intersted in hearing pros or cons from others on this forum.

[ecb34691]

US Treasury Press Release = tried to upload pdf file but didn't work. Treasury released a press release of about 5 pages of examples this afternnon

[clr]

Link

US Treasury Press Release = tried to upload pdf file but didn't work. Treasury released a press release of about 5 pages of examples this afternnon

Do you have a link to the pdf.

[KBTS]

Try this link

The link to the pdf is on this page

http://www.ustreas.gov/press/releases/hp824.htm

[Zee]

I'm wondering whether it will be worth the time & trouble to prepare a return for a one-time client with virtually no prospect for a long-term relationship, when weighed against what we can reasonably charge for this service.

I'm hoping VITA, TCE, and other organizations will gear up for this. If I can find a local contact I think I'll refer anyone who calls me to their services, unless they insist on paying the going rate. This is just off the top of my head, and I'd be intersted in hearing pros or cons from others on this forum.

Good point. You might also refer them to the free filing websites. But, if we do the return, what do you think the minimum charge should be?
You're correct. This is one-time business, and they'll probably be calling in May wanted to know where their rebate checks are, so it's not practical to do it for nothing.

[clr]

Thks

The link to the pdf is on this page

http://www.ustreas.gov/press/releases/hp824.htm

Thanks KBTS

[ChEAr$]

What a kicker we have here!

Ordinarily no, they're not on the return, but IRS says via <http://www.irs.gov/irs/article/0,,id=179096,00.html> that the benefits should be included on line 20a of 1040 - that's the line where the gross social security amount is typically shown.

I am not sure that it's going to be easy to get tax software to include that amount on that line without screwing up other parts of the return - but those are the IRS instructions. If I were filing for a person with a mix of social security and nontaxable benefits and including the benefits on 20a generated an incorrect result, I'd probably do that return by hand (ick) unless my software provider sends me an update pretty soon to address this.

Right, VA disalibility is not "normally" a line 20a item.

However, as far as software is concerned, there is always the override button we can use to include any amount we want to put on the return.

My software (TAxwise) allows direct entry of SS benefits without any kind of worksheet.
Only if one has federal withholding must one resort to use of the worksheet.

Now then, how will all those "old sarges" know about this?

[Y2KEA]

Can't efile with SS only

Just tried to do a return in Lacerte for SS only. Can't be efiled with an amount only on line 20a.
This is the client's only income. Do I put $1 on line 8a?

[ecb34691]

Why not? AGI can not be Zero $ to e-file.

[Jesse]

Good point. You might also refer them to the free filing websites. But, if we do the return, what do you think the minimum charge should be?
You're correct. This is one-time business, and they'll probably be calling in May wanted to know where their rebate checks are, so it's not practical to do it for nothing.

Anyone determine what your minimum charge will be?

[Gretel]

I would say $50 after 4/15.