Thursday, February 21, 2008

People Receiving Only Social Security Retirement Income May Want To File A Tax Return

People who have only Social Security retirement income usually do not owe taxes and do not need to file a tax return. In 2007, tax filers with no tax liability and at least $3000 of "qualifying income" may be eligible to receive a tax rebate payment of $300 (single filers) or $600 (joint filers). Social Security benefits reported in Box 5 of the 1099-SSA count as "qualifying income."

To be eligible for a tax rebate payment in 2008, one must file a 2007 tax return. Therefore, people with over $3000 of Social Security retirement income may want to file a 2007 tax return, even if they have zero tax liability and do not need to file.

For more information, see this IRS Questions and Answers document.

For more on Crossing Generations, check back every Thursday for a new segment.

This is not financial or tax advice. Please consult a professional advisor.

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