The Economic Stimulus

1
The Economic Stimulus Low-Income Seniors

• National Aging and Disability
• Information and Referral Symposium
• May 19, 2008
• Hilary Sohmer Dalin
• Associate Director, My Medicare Matters
• National Council on Aging

2
What We Will Cover

• What Do You Need To Know?
• What is the stimulus? How did it come about?
• Whos eligible? How does it affect low income
  seniors younger people living with disability?
• What do low income seniors younger people
  living with disability get?
• How do they get it?
• Effect on other entitlements
• How Can You and Your Networks Help?
• What can you do to help low income seniors
  younger people living with disability? Where can
  they get help?
• Resources
• Contacts for questions and ideas

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How Did It Come About?

• To help spur a slowing economy, Congress enacted
  an economic stimulus package
• The stimulus payments are a key element of the
  package
• The stimulus payments will have no adverse effect
  on 2008 tax status or liability

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What Is the Stimulus?

• The IRS will send economic stimulus payments to
  over 130 million households began in early May
  2008 and will continue through the remainder of
  2008.
• Around 20.5 million Americans who rely
  primarily on Social Security or VA income
  qualify for a stimulus payment.

5
Whos Eligible?

• Most U.S. taxpayers
• In US legally
• Not claimable as a dependent on someone elses
  income tax return (Ex Mom lives with daughters
  family)
• And also people who generally dont file tax
  returns, but have certain kinds of income
• Social Security
• NOT Supplemental Security Income (SSI)
• But people with SSI who had other income in 2007
  may qualify
• Certain Railroad Retirement or Veterans
  Administration benefits

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How Does It Affect Low Income Seniors Younger
People Living with Disability?

• Older people and younger people living with
  disability who had at least 3,000 in gross
  qualifying income during 2007 can get the payment
• The following income sources do NOT count towards
  the 3,000 minimum
• SSI
• Interest income
• Dividend income
• They MUST file a 2007 tax return!

7
What Do Low Income Seniors Get?

• Generally they will get
• 300 if single
• 600 if married and filing joint return
• Plus 300 per child under age 17 on December 31,
  2007
• Grandparents raising grandchildren

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How Do They Get It?

• They MUST file a 2007 tax return!
• If their primary income is Social Security they
  should file a 1040A
• File no later than October 15, 2008
• Can view a sample 1040A form link included in
  Resources section

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What is Your Plan to Help?

• Can you help organize information dissemination?
• Can you and your direct service agency partners
  help with simple 1040A tax returns?
• Well review what a simple return is
• Show you an electronic tool to make it easy, and
• Discuss 7 Simple Steps that can used to assist
  many low income seniors
• What opportunities are presented for increased
  benefits outreach and enrollment?
• How can national organizations (NCOA, NASUA,
  AARP) provide technical assistance for you?

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Now Its Easy for YOU to HelpAn Economic
Stimulus Payment Tool

• A tool for people with only Social Security or VA
  income that pre-fills a 1040A
• Based on info the client provides
• Enables printing of 1040A with an instruction
  sheet
• Tells which IRS Center to mail 1040A to, based on
  zip code
• Brought to you by AARP Tax-Aide and National
  Council on Aging

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Where to Find the Economic Stimulus Payment tool
and What You Need

• Benefits Check Up
• www.BenefitsCheckUp.org
• AARP Tax-Aide
• Takes less than 5 minutes per return
• www.AARP.org/stimulushelp
• You only need clients
• Name, address, SSN
• Filing status single or married filing jointly
• SS, RR or VA income

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Seven Simple Steps to Filing

• Use IRS Form 1040A
• Write STIMULUS PAYMENT across the top of the form
• Write the clients name, address and Social
  Security number in the boxes at the top of the
  form
• Include filing status single or married
  filing jointly.

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Seven Simple Steps, continued

• Put the seniors Social Security (or Railroad
  Retirement or VA) income on Line 14a. (Other
  income sources should also be reported.)
• Sign and date the form
• Make a copy
• Submit to the appropriate IRS payment center
• see link to where to file list on Resources
  Slide
• Get trained tax assistance if clients
• Have dependent kids under age 17 living with her
• Live in someone elses household
• Have other complicating factors

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Effect on Other Entitlements

• Receiving a stimulus payment under the stimulus
  package does not affect eligibility for or amount
  of federal need-based benefits programs (i.e.,
  Food Stamps, Section 8 or Medicaid)
• Specifically, the payment does not count as
• income in the month it is received
• Thus, no affect on Medicaid Long-Term Care share
  of cost
• Stimulus payment belongs to resident is
  invisible to facility and to Medicaid
• a resource (asset) for 60 days after the month in
  which it was received.

15
Avoiding Economic Stimulus Payment Scams Fraud

• IRS does not
• Go door-to-door
• Make outbound phone calls
• Ask for credit card info

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IRS Notices to Low Income Seniors

• In March 2008, IRS mailed packets to 20.5
  million Americans who
• Did not file taxes last year
• Had Social Security and/or VA income in 2007
• IRS packet contained
• Blank 1040A form
• Template 1040A form
• Explanatory pamphlet

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IRS Notices, Continued

• IRS is doing a second mailing in June or July
• Contents not yet determined

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Resources

• IRS toll-free number for consumers re stimulus
  payments
• The number is 1-866-234-2942
• IRS information on stimulus payments
  http//www.irs.gov/irs/article/0,,id177937,00.htm
  l
• Sample IRS Form 1040A related to stimulus
  http//www.irs.gov/pub/newsroom/1040a.pdf
• Information on where to file taxes
  http//www.mymedicarecommunity.org/attachment.php?
  attachmentid193stc1d1205952541
• NCOA information on www.MyMedicareCommunity.org
  about the economic stimulus and seniors with low
  incomes includes link to NCOA fact sheet
  http//www.mymedicarecommunity.org/forumdisplay.ph
  p?f32
• Link to AARP tax-aide program
• http//www.aarp.org/taxaide/

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Economic StimulusQuestions/Comments/Suggestions

• Post to
• www.MyMedicareCommunity.org to the Forums page
• Contact
• stimuluspayment_at_ncoa.org
• NOTE
• These contacts are for you.
• Client toll-free IRS number is 1-866-234-2942