IRS: File to receive stimulus payment

Income tax deadline is Tuesday, April 15

COLUMBIA BASIN - If Columbia Basin residents want to receive their one-time economic stimulus payment, they need to file their tax return or for an extension.

Judy Monahan, Seattle-based Internal Revenue Service spokesperson, urges residents to file their 2007 tax return by the April 15 deadline in order to receive their stimulus payment, which she said has also been referred to by the media and general public as a "rebate."

Payments of the economic stimulus payment begin to be sent out in May, continuing into June and July, Monahan explained.

She is often asked if a person can still get their "rebate" if they file for an automatic extension, and the answer is, not until they file their return.

The economic stimulus payment is separate from the regular tax refund.

"Technically, it's an advance tax credit for 2008, and we are basing the amount on the 2007 tax return," she said.

Refunds for the 2008 year will not be diminished because of the payment, Monahan noted.

"Whatever refund you would have gotten, that you'll get in 2008, if the rebate wasn't there, it's the same refund," she said.

Monahan referred to a scenario in which a married person files a joint return, and receives a stimulus payment of $1,200, then has a child this year in 2008.

"On next year's tax return, you would put in for more money because you have a child," she said. "So you'd be eligible for $300 more. So it's not like you can't make up the difference if your circumstances change."

In the same scenario, where the person gets the maximum amount of $1,200, but one of the people in the marriage loses their job and the incomes goes way down, the money does not have to be paid back.

"If you get paid too much, that's fine," Monahan said. "It's a tax credit for 2008 tax returns, but we're basing it on 2007, and if your circumstances change next year and you're due additional money, then you'll get it."

The majority of people get refunds when they file a return, Monahan said, estimating 3 million tax returns will be filed by individuals in the state.

A wide variety of options are available to those people who owe money, she added, pointing to the payment option information at the IRS Web site, www.irs.gov.

"The point of that is, let's say you owe money, whether you filed the 2007 return by April 15 or an extension by April 15," she said. "You want to pay as much as possible, so if you owe $1,000 and you can pay $500, do it. The big thing is you don't want a failure to file and a failure to pay, because there are penalties."

Approximately 380,000 Washington residents normally don't have to file tax returns, including low-income workers, people on Social Security or receiving veteran's benefits.

But this year, Monahan noted, they have to file in order to receive the economic stimulus payment. The final deadline to file, upon filing to receive an extension, is Oct. 15.

"The sooner you get it in, the sooner you get your money," Monahan said.

For those who have to file their return but don't have their records together yet, she urged filing for an extension.

"If you think you owe money, then put a check in with that," she said.

Free aid for basic returns is available, primarily for senior citizens, disabled and low-income households at 888-227-7669. The number lists sites available for free tax assistance.

When a person doesn't file a return and has a refund coming, there's no penalty, Monahan said.

"The penalty is based on taxes you owe," she said. "But then again, you don't get your money. And there are statutes of limitation for how long you can claim it. We urge people to file in a timely way."