Taxes
Downing: Veterans filing for rebates
01:00 AM EDT on Friday, March 28, 2008
BRISTOL — Thomas Newman doesn’t usually file a federal income-tax return. He doesn’t have to.
But he did yesterday, just so he can receive a federal rebate.
Newman, 49, who lives at the Rhode Island Veterans Home in Bristol, is one of about 90,000 Rhode Islanders who are subject to a special set of rules for this year’s federal rebate program.
They aren’t required to file a return each year — mainly because their income is so low — but they are eligible for a rebate nevertheless (generally $300 for someone who’s single, $600 for a married couple).
The group includes many seniors, veterans, low-income workers and others who had at least $3,000 last year in “qualifying income” (such as Social Security benefits, veterans’ benefits, or railroad retirement benefits).
By law, people in this category are generally eligible for a rebate — even though they owe no tax.
That was one of the points that Governor Carcieri made yesterday in a visit to the Veterans Home.
“You don’t need to be paying taxes to qualify” for a rebate, he told a group of veterans in the facility’s dining center. “You can qualify — and most likely will qualify” for a rebate, he said.
If you’re in this category, however, you must file a federal return this year. It’s just to give the Internal Revenue Service the information it needs to process your rebate —such as your name, address and Social Security number, said Jodonna Powell, an IRS official at yesterday’s gathering.
It’s taking some time for the message to get across. After all, if you don’t usually file a return, you probably don’t pay much attention to talk about tax-related matters.
But it’s worth focusing on this season. As Gary Alexander, director of the Rhode Island Department of Human Services, put it yesterday, “Any time the government is going to give us back our money, it’s time to cheer.”
Stanley Jaksina, 79, a Marine veteran, and Raymond T. Remington, 81, an Army veteran, were sitting at a table toward the back of the room yesterday, having lunch.
They both reckon that they’ll be getting rebates — probably $300 apiece — “because we both signed up,” Jaksina said.
They hadn’t decided what they’ll do with the money. Remington talked about buying a fishing pole; Jaksina said something about playing cards.
A little bit later, Thomas Newman was busy in the auditorium nearby. An IRS official, Meg Chevalier, was helping him prepare his return.
Newman, an Army veteran, said he hadn’t decided what he’ll do with his $300 rebate. But this much is clear: It’ll be his to keep.
The state-run Rhode Island Veterans Home has three chief sources of income — funds from the U.S. Department of Veterans Affairs, the Rhode Island Department of Human Services, and a fee paid by the home’s 240 residents, said William P. Camara Jr., the state’s acting associate director for veterans’ affairs.
In general, the fee amounts to 80 percent of a resident’s net income, he said. But as part of a policy set by the Carcieri Administration, the rebates won’t be counted as part of a resident’s income for purposes of the fee, Camara said.
In other words, residents won’t have to turn over any portion of their rebate; it’ll be theirs to keep — and to spend, however they see fit, Camara said. “They’re keeping it for their own spending money,” he said.
After all, President Bush and Congress designed the rebate legislation to quickly put money into people’s hands, money they can spend to help boost the nation’s slumping economy.
Rhode Island’s policy on the rebates “goes along with what the president wanted,” Camara said.
TODAY’S TIP: Sen. Sheldon Whitehouse, who campaigned to broaden the rebate program to include low-income seniors and others, will hold one of his rebate outreach meetings today at 1 p.m. at the Cranston Senior Center.
IRS representatives will be on hand to help answer questions about the rebate program and help prepare people’s returns.
The event, at 1070 Cranston St., Cranston, is free and open to the public.
Tomorrow, the IRS will join forces with volunteers to spread the word that people who don’t normally file a federal income-tax return may be eligible for a rebate.
As part of the agency’s “Super Saturday” campaign, the IRS office at 380 Westminster St., Providence, will be open from 9 a.m. to 3 p.m. to help people in this category file the U.S. Form 1040A to obtain a rebate.
Eight other sites throughout Rhode Island, staffed mainly by volunteers, will also open tomorrow for this purpose. To find a site near you, call the IRS hotline toll-free at 1-800-906-9887.
A separate toll-free hotline — at 1-866-234-2942 — will be available from 9 a.m. to 3 p.m. tomorrow to handle rebate questions.
Questions about your money matters? Call us at 1-401-277-7484 and leave a message, or e-mail:
Whether you phone in or e-mail your question, please be sure to include your name, home town and home phone in case we need to reach you. Sorry, no personal replies; as many questions and issues as possible will appear here.
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