Economic stimulus payments are coming
Published Sunday, March 2, 2008
By Jebb Johnston
Staff writer

With free money coming from the federal government later this year in the form of economic stimulus payments, many people are asking who qualifies and how to get it.
Others may be contemplating what to do with a $600 windfall.
"I've had that question posed to me quite a few times in the last few
weeks," said Greg Cooley, a Corinth financial planner. "People need to
realize this money is coming to them, and they need to use it in the way
that is best for them and not be so concerned about what politicians tell
them is best for the economy. If everybody does what¹s best for them, it
will filter through to the economy correctly."
Most taxpayers just need to file a 2007 tax return in order to automatically receive the stimulus payments of up to $600 for individuals and $1,200 for married couples filing jointly.
Tom Chartres, Corinth coordinator for AARP's Tax-Aide program, said the economic stimulus payments have prompted many questions from the public, because some people who do not normally file tax returns must do so to get the payment.
These include people who had income of at least $3,000 from Social Security benefits; veterans' disability compensation, pension or survivors' benefits; or certain railroad retirement benefits. These individuals are eligible for payments of $300 or, on a joint return, $600.
Millions of people in these categories need to fill out a Form 1040A to get the payment.
"If they want to come see us, we will be happy to do a 1040A form for them," said Chartres. "We will give it to them and let them mail it. We cannot file it electronically."
To accommodate these people who do not normally file, Tax-Aide now sets up a separate table just for 1040A filings as it continues its Monday morning sessions of free filing assistance at the Corinth Library. The Tax-Aide volunteers processed 20 1040A forms during this week's session.
Chartres said the volunteers are also willing to work with groups of
shut-ins to help them get the payments.
Instructions on what sections of the Form 1040A to complete are available at IRS.gov. Taxpayers in these groups should write the words "Stimulus Payment" at the top of the form.
The stimulus payments are scheduled to be mailed in early May after the current tax season concludes. Eligible taxpayers will receive an additional $300 for qualifying children who were less than 17 years old as of Dec. 31.
People who choose direct deposit for a 2007 refund will automatically
receive the stimulus payment by direct deposit.
For those seeking wise use of the money, Cooley has several suggestions. One is reducing debt, particularly on high-interest credit cards.
Another idea, for those who haven't already, is to create a personal
emergency fund.
"This windfall of money coming in is a great place to do that," advises
Cooley.
He also suggests spending the money on family needs, such as health care or a home repair.
"If you go out and buy a big-screen TV, you don't necessarily have anything that is going to help them in the long run," said Cooley. "The intent of the money is to help you."
The IRS offers a section on the stimulus payments at IRS.gov.

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