US will save millions-on the backs of poor seniors

There are times when government truly embarrases me. Many times it's the way that they deal with our senior citizens, especially our low income seniors.

This hits home for me because of have a mom and dad that fall into this category and I constantly have to be on the lookout for them.

The latest boondoggle - the economic stimulus package passed in it's full wisdom by our beloved congress and signed into law by our chimp in chief.

***UPDATE*** Link to the IRS bulletin that spells out what social security recipients must do is here.

As everyone knows, we are going to magically jumpstart our economy by sending everyone a check. Initially low income seniors, who rely upon social security, were going to be left out of this largesse. At the last minute, they were included to the tune of $300. Not a lot, but when you receive $6360 a year, it's a lot of money.

However, in order to receive your check, YOU MUST FILE AN INCOME TAX RETURN. Sounds logical, doesn't it. Except millions of seniors are not required to file an income tax form because their only source of income is social security and their income levels are too low. For many, they haven't filed an income tax return in years.

So suddenly they are all supposed to magically realize 1) they need to file an income tax return 2) have kept their 1099SSA forms and 3) have the faintest idea how to actually go about doing this.

I find it appalling that our legislators and our administration did not see the need to have the internal revenue system come up with a way to automatically take care of these citizens. Surely if they are able to determine that they didn't need to file a return then they could come up with a way to send them their measly $300.

When I asked my parents if they new about this, their response was "we don't have to file taxes" or "the neighbor said the checks were already on the way to us." At first they said they had thrown away their 1099 SSA's (I would image a lot do.) Fortunately, it was the tax forms sent to them by the IRS that they threw away - they managed to find their 1099's.

I would suspect they are not alone. The vast majority of seniors who don't file income tax forms will have no idea that there is $300 waiting for them out there, but they have to submit a 1040A.

It wasn't a big deal for me to create a 1040A for each of them and send it up to them so they'll get their $300.

Please make a point of asking every parent or senior you know if they're aware they have to file a tax return to get their opportunity to help restore our economy. (snark intended)

For my parents, it will help pay for a tank of heating oil this winter. For many others, it will make a big difference in their lives.

•  Well I Learn Something New Each Day

  wasn't aware of this. But then again until about a decade ago when I started to use a CPA I didn't realize how little I new about our tax code. Since then it has always amazed me that those that can afford a CPA, those that might not need every since tax break, are the folks that work the code the most to their advantage.

  by webranding on Sat Feb 16, 2008 at 07:04:34 AM PDT

•  Oh, no.

  I'd like to strangle the bozos who passed this mess...there's no reason at all that they can't just send the check to Social Security recipients...the really stupid thing is that I'll bet those seniors with higher incomes will get more money...the ones who need the money to pay for heating oil may lose out, and those who will use it to pay greens fees at the golf course will get probably get twice as much.

  I'm a little personally annoyed because this means a lot of extra work for those of use who volunteer for VITA or TCE (Tax Counseling for the Elderly). The Bush years have seen a rash of legislation that was supposed to provide benefits for low/middle income taxpayers, but at the price of drastically more complicated returns (and for a pretty small benefit in most cases). It won't be hard to do returns for those who don't normally need to file, but it will add to the workload and make it harder to provide assistance to all who need it.

  by Alice in Florida on Sat Feb 16, 2008 at 07:10:24 AM PDT

•  If only...

  Bu$hco would use the money for PSAs to get the word out to seniors, rather than do a PR campaign to make him look better, all seniors would benefit.

  Bush's successes in fighting AIDS and malaria in Africa are not as well known at home, and the administration has teamed up with Warner Bros. to create a 2 1/2 minute movie trailer to play in theaters starting this summer, showing antiHIV programs in three countries with Bush's voice as off-screen narration. Warner Bros. is also producing a 15-minute documentary on the AIDS program.

  by gooderservice on Sat Feb 16, 2008 at 07:13:26 AM PDT

•  Tips, comments and flames

  Are always appreciated

  by kansasr on Sat Feb 16, 2008 at 07:34:36 AM PDT

•  Exactly. I am one of the seniors who will get....

  screwed, and in exactly the manner you indicate. Bah humbug on this b.s.  SS gave me a net cost of living increase of $26 this year (discounting my Medicate premium which was also increased.

  With the cost increases in gas, utilities, food, and my Medicare D premium/deductibles/co-pays, that $26 covers exactly nothing. Low income seniors got screwed this year, and are now getting screwed again with this phony stimulus plan.

  by Hornito on Sat Feb 16, 2008 at 07:39:03 AM PDT

•  Another sneak attack

  This is not directly related to your good diary, but represents another example. Two years ago, the government surreptitiously changed the "look back" period for aged Medicaid recipients in nursing homes from two years to five years. What does that mean? If grandma went in a nursing home and spent every dime of her money (since Medicare only covers 100 days), the government could now go back 5 years instead of 2 and take everything she had given away, including perhaps her home. Since some seniors had purchased 2 years of nursing home insurance (based on the old rule) it meant that this insurance was worthless.

  No one every publicized this.

  by MrMichaelMT on Sat Feb 16, 2008 at 07:52:25 AM PDT

•  Important diary

  Thank you for posting this information.  I didn't know this and will pass it on to any seniors I know living solely on social security.

  You've done a public service.

  by jakbeau on Sat Feb 16, 2008 at 08:02:19 AM PDT

  •  Thank you

    Unfortunately since it doesn't include a list of seniors who are either endorsing or opposing Obama or Clinton, it won't see much of the light of day :(

    by kansasr on Sat Feb 16, 2008 at 09:01:21 AM PDT

•  Jeez. I'm in that boat.

  I have no idea where my 1099SSA form is.  Doesn't the government already know what I got?  This seriously sucks.  

  Thanks for the link.

  Three hundred bucks is kind of insulting, since the better-off get a much larger check.  If I got the larger amount, I could get my car back on the road.  I need insurance, current license tag, inspection.  I'm afraid to take the car more than a mile, and that in darkness.  Three hundred won't get me there.

  by willb48 on Sat Feb 16, 2008 at 09:13:08 AM PDT