EXTENSION REPORT

We are getting close to the April 15th, 2008 deadline to file your income tax. The major change this year involves the Stimulus Tax Bill passed by Congress. After May of this year, the I.R.S. will be sending out refund checks to millions of Americans who filed a 2007 tax return.

In order to claim your part of this refund, you MUST file a federal tax return for the 2007 tax year. For seniors who do not normally file, (due to a lack of reportable income), they can file a form 1040-A. These seniors can claim their Social Security Income to meet the necessary income level of three thousand dollars. Seniors will need to write the words “Stimulus Payment” across the top of the form 1040 or 1040-A. If seniors are filing jointly, both spouses must include their names and Social Security Numbers. Information on the Stimulus Payments can be found at the I.R.S. web site “ irs.gov”. To find free help in filing this return, you can call the I.R.S. toll free number at 1-800-906-9887 or contact you local senior citizen center.

Each year citizens of Alabama fail to claim deductions that they are entitled to. This results in more tax being paid that is necessary and fewer refunds received. One of the most overlooked deductions is the Earned Income Credit (EIC). Most people think that the EIC is only available to parents. In the case of a grandparent raising grandchildren, if that child lives with the grandparent for more than 6 months out of the year and they provide for more than 50 %  of  the upkeep, they may be eligible to claim the EIC. This could be worth several thousand dollars to the grandparents.

Of those who claim the EIC each year, they are eligible to file a Form W-5 with their employer. By filing this form, the taxpayer can receive monthly payments of the EIC instead of receiving the lump sum at tax season. This could really help a single parent raising children in their monthly budget.

            If you think that you may be eligible for the Earned Income Tax Credit, please contact a local tax preparer for that determination. You may be eligible to go back three years and file a Form 1040X to claim the EIC that you may have been eligible for the past three years. Remember, this is your money that you are entitled to. Good luck.

Email address: rrz0001@auburn.edu
Phone: 937-7176 or 943-5611, 928-0860, ext. 2222

Issued in furtherance of Cooperative Extension work in agriculture and home economics, Acts of May 8 and June 30, 1914, and other related acts, in cooperation with the U.S. Department of Agriculture. The Alabama Cooperative Extension System (Alabama A&M University and Auburn University) offers educational programs, materials, and equal opportunity employment to all people without regard to race, color, national origin, religion, sex, age, veteran status, or disability.