My dad had a stroke 2 years ago and finally got approved for disability last year. Now that it’s tax time, should he anticipate a refund when he files? No tax was withheld from his Social Security benefits, so it seems obvious he won’t get a refund. But the IRS calculator (“should I file a return?”) still indicates that he should file a return.
What about things like mortgage interest paid on his home, and his out of pocket medical costs–are they simply deductions he could take if he had paid taxes?
3 responses so far ↓
1 LaToya E
Sounds like your dad will not qualify for any refundable credits in 2007 (e.g. earned income credit). This year he should still file a zero return to possibly qualify for the rebate that will be sent out mid-year. Last year he should have filed a return to receive the refundable federal excise tax credit.
2 Joan M
If he received at least $3,000 in benefits for 2007 he needs to file a 2007 return to qualify for a $300 payment under Bush’s Economic Stimulus Act. He should have received a letter from the IRS but, if he did not, all you need to do is write the words “Stimulus Payment” across the top of the 1040A form and show his social security disability benefits on line 14a. (I’m assuming he has no taxable income).
3 Richard M
Unless he had other taxable income, it is pointless taking deductions for medical and interest expenses, since there is no tax to refund.
According to the IRS:
You may qualify for a minimum payment of $300 ($600 if filing a joint return) if your tax return reflects $3,000 or more in qualifying income – which includes non-taxable Social Security disability.
BUT YOU MUST FILE TO RECEIVE THE REBATE, even if you are not required to do so.
See the sample Form 1040A at the link below:
Alternatively, the IRS has announced an electronic free file option for people who have no legal requirement to file a tax return but must file a return this year in order to receive a 2008 economic stimulus payment. Click on this link to file for your rebate electronically:
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