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Letter to the editor

Get answers to your tax questions

Tax season is in full swing and confusion reigns, especially among seniors who don't owe taxes and are filing just to a rebate.

By Helen Huntley, Times Personal Finance Editor
Published February 24, 2008

Tax season is in full swing and confusion reigns, especially among seniors who don't owe taxes and are filing just to a rebate.

We are answering lots of questions on the Money Talk blog (blogs.tampabay.com/money. You also can find some great tax information elsewhere on the Web, including the Times' Web tax special (accessible through money.tampabay.com), the IRS site (irs.gov) and Kiplinger.com (kiplinger.com/taxcenter), which has a handy rebate calculator.

Seniors and people with low incomes can get free tax help at many locations. You can find one by going to www.aarp.org (look for "AARP Tax-Aide on the left-hand side) or by calling the IRS toll-free number at 1-800-829-1040. The trick to getting a live person on the line is to press a "1" at the first prompt and a "5" at the second prompt.

Here is a sampling of questions readers have asked:

Is there a special form seniors who don't owe taxes should fill out to claim the rebate?

No. You can use a regular Form 1040 or Form 1040A. The IRS suggests writing "stimulus rebate" at the top of the form and mailing it in.

Can we deduct documentary stamps, recording fees and other fees we paid when we bought our home last year?

No. Those are considered transaction taxes, which are not deductible.

We always wait until July to get our taxes done so we can go see the accountant who has done our taxes for 35 years. Will we still be eligible for a rebate?

Yes, but your friends and neighbors probably will get their rebates before you do. Why not mail your forms to your accountant?

We are both over 65 and both receive Social Security. My wife is still working and her salary income by itself makes her eligible for the $600 rebate. Will our Social Security incomes plus her salary make us eligible for the $1,200, or will we get $900 or some other sum?

If you are married and file a joint return, your rebates are not calculated individually. They are paid to you jointly. Second: There are two ways to earn a rebate. One is based on your tax liability. The other, for people who have little or no tax liability, is based on income alone. If your wife has at least $3,000 in earned income, then you are eligible for the combined $600 minimum rebate based on the minimum income. You no doubt also would qualify based solely on your Social Security income. However, you cannot use the minimum-income method to get more than the minimum rebate. The key to getting more than the minimum rebate is your joint tax liability. If you don't claim the child credit or the Earned Income Credit, use the tax liability found on line 63 of Form 1040, line 37 of Form 1040A or line 10 of Form 1040EZ. Your rebate will be this amount up to $1,200. If it is less than $600, you'll still get the $600 minimum.

Next week's question

Is the Tampa Bay area still a good place to retire?

To ask a question

Or to make a comment or answer the Money Question of Week, e-mail hhuntley@sptimes.com or write Helen Huntley, P.O. Box 1121, St. Petersburg, FL 33731. Visit her MoneyTalk blog (blogs.tampabay.com/money) for more money information.

[Last modified February 22, 2008, 21:59:22]