April 3, 2008
Peake: Special Provision for Low-Income Veterans
“The President’s economic stimulus benefits have a special provision for low-income veterans,” said Secretary of Veterans Affairs Dr. James B. Peake. “VA is working closely with the Internal Revenue Service and the Treasury Department to get the word out about this unique benefit.”
Under the White House’s program, payments are $300 for an individual, $600 for a married couple filing joint tax returns, plus $300 for each dependent child under age 17 on Dec. 31, 2007.
To qualify, taxpayers must have at least $3,000 in income in 2007. While VA’s disability compensation, pensions and survivors benefits are not subject to income tax, the administration’s economic stimulus proposal, passed by Congress in February, allows veterans and survivors to count those payments toward the income requirement of $3,000. To claim the benefit, veterans -- like other taxpayers -- must file an income tax return.
For eligible veterans who do not normally file a tax return, information about claiming the economic stimulus payment is available in “Package 1040A-3,” available from IRS offices.
IRS is mailing a package of information to recipients of VA benefits who did not file a tax return last year. For more information, visit the IRS Web site at http://www.IRS.gov.
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