Published: April 11, 2008 11:20 pm      

Rebate prompts extra tax filings

Rebates available to citizens who do not normally file tax returns have prompted many new people to seek help with their taxes this year.

While the April 15 deadline is looming, people with tax-exempt income can file as late as Oct. 15 to receive the rebate, said Carol Teague, an AARP volunteer who has been assisting senior citizens with their tax forms.

People who have at least $3,000 of income from social security, veterans benefits or other tax-exempt sources typically do not file federal tax returns.

This year, however, they may be eligible to receive tax rebates that will be coming to most tax filers.

Individuals may receive from $300 to $600, while married couples could receive up to $1,200. A married couple with two children could receive as much as $1,800.

The tax rebate was authorized by Congress earlier this year to stimulate the economy.

Individuals who receive Supplemental Security Income (SSI) from Social Security are not eligible for the rebate, Teague said.

As they have for the past few years, AARP volunteers offered free tax preparation help to senior citizens this year at the Richmond branch of the Madison County Public Library. The last session concluded Friday.

At their March and April meetings, Madison County veterans’ organizations reminded their members to file tax returns to receive the rebate, said Marvin Bauer of the county veterans’ committee. “We could not offer tax preparation assistance, but we encouraged those who could not afford to pay for assistance to take advantage of the AARP service,” he said.

“It’s been kind of crazy around here this year,” said Sue Hays, library director. “I think they had at least 300 more people seeking help this year because of tax rebate.”

While the library only provides space for the AARP, library staff have received many inquiries and requests for assistance.

“Some people thought they could file here and receive their rebate check,” Hays said.

Some for-profit tax preparers offer loans to clients based upon their projected tax rebate or refund.

The Internal Revenue Service will begin mailing rebate checks about May 1, said Richard Fern, a professor of accounting at Eastern Kentucky University.

The library offers — free of charge — computers with Internet connections from which people can file electronic tax returns, said branch librarian Kathy Crouch.

Tax forms and instruction materials may be accessed on-line and printed on the library’s printers.

The library also maintains a collection of tax forms and instruction materials that may be copied. The library charges for copying and printing.

“We’ve run out of the form 1040 instruction booklets provided by the IRS, but you can still access the information on-line,” Crouch said.

To receive the rebate, filers need to use either the 1040 or 1040A, said Fern.

“Those forms have two lines for Social Security. Filers should list their 2007 income and then put “0” in the line for tax to be paid,” he said, “and on line 20a, write ‘stimulus.’”

Any filer who expected to pay tax may apply for an extension to make the payment, Fern said. “They still need to file and make some form of payment. The extension request postpones the payment, not the need to file,” he said.

Late payments will be subject to a penalty of 0.5 percent each month and additional interest.

Local post offices say electronic filing has reduced the number of people mailing tax returns.

“We still expect to be busy on Tuesday,” said Kim Owens, Richmond postmaster.

To receive an April 15 postmark from the Richmond post office, mail must be in a drop box outside the office or in the lobby by 4:45 p.m. The office counters close at 4:30. Three clerks will be on duty until then.

In Berea, post officer personnel will be collecting mail from drop boxes in the lobby and outside the building shortly after midnight, said Jeff Lyons, delivery supervisor. That mail will receive an April 15 postmark.

Bill Robinson can be reached at brobinson@richmondregister.com or at 623-1669, Ext. 267.