By Stephen Barr
Friday, March 21, 2008
Tax law is difficult to understand, and tax rebates are not easy to grasp either -- for the general public or for federal retirees.
This year's economic stimulus law does not count income from pensions for determining eligibility for rebates, and the law's omission of the Civil Service Retirement System and the Federal Employees Retirement System has created some confusion for government retirees.
"We've been getting a lot of calls," said Dan Adcock, assistant legislative director at the National Active and Retired Federal Employees Association, based in Alexandria.
Most federal retirees, though, should be able to qualify for a rebate under this year's stimulus package. According to the Internal Revenue Service:
Retirees who file a tax return and usually owe taxes will be eligible for rebates.
And retirees who do not pay taxes but have at least $3,000 in income from self-employment, wages, Social Security or certain types of railroad and veterans benefits also can expect rebates.
Because the government's contribution to a federal pension is taxable income, many government retirees file tax returns and will probably qualify for the tax rebate.
The average annual pension payment in the Civil Service Retirement System is $31,752, and the average annual annuity in the Federal Employees Retirement System is $11,544. The latter system also provides a Social Security benefit.
Under the stimulus law, rebates phase out for individuals with adjusted gross incomes of more than $75,000 and married couples who file a joint return with incomes of more than $150,000.
Most taxpayers will receive rebates of up to $600 ($1,200 for married couples), and parents will receive an additional $300 for each eligible child younger than 17.
Federal retirees who do not file tax returns must submit a 1040A form to obtain a rebate, assuming they can show at least $3,000 in qualifying income. Rebates for low-income retirees will range from $300 to $600.
Supplemental Security Income, a Social Security program that assists the disabled or people with limited income, does not count as qualifying income for the rebate.
Yesterday, the IRS announced that military personnel serving in combat zones have the option of including their nontaxable combat pay on their 2007 or 2008 tax returns if it helps them qualify for a rebate. To receive a rebate this year, military personnel in combat zones must file a 2007 return by Oct. 15, the IRS said.
Information and fact sheets about the rebates, which the IRS will start sending to taxpayers in May, can be found on the IRS Web site, http://www.irs.gov.
Border Patrol Job FairU.S. Customs and Border Protection, which typically hires from the border states, will be in Washington tomorrow to recruit for the Border Patrol and help job applicants navigate the federal hiring process.
CBP plans to hire more than 6,000 Border Patrol agents this year, and the agency is scouting for employees across the country and overseas. Next week, for the first time, CBP recruiters will be in Germany at six military installations in hopes that military personnel leaving the armed forces will be interested in law enforcement careers.
Border Patrol recruits earn $36,000 to $46,000 in their first year, with the potential to earn up to $70,000 within three years of service, the agency said. The hiring process includes a written exam, medical exam and physical fitness test. The agency especially looks for applicants with an aptitude for languages or proficiency in Spanish.
The job fair will be held from 9 a.m. to 5 p.m. at the Westin Embassy Row at 2100 Massachusetts Ave. For information, go to http://www.cbp.gov/careers .
Talk ShowsTim Dirks, senior consultant at the Partnership for Public Service, will be the guest on "FedTalk" at 11 a.m. today on http://federalnewsradio.com and WFED radio (1050 AM).
Jim Williams, commissioner of the Federal Acquisition Service at the General Services Administration, will be the guest on the IBM "Business of Government Hour" at 9 a.m. tomorrow on WJFK radio (106.7 FM).
Stephen Barr's e-mail address isbarrs@washpost.com.
View all comments that have been posted about this article.