VA News Releases: Vets & Economic Stimulus

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Economic Stimulus Package Will Benefit Some Veterans
Peake: Special Provision for Low-Income Veterans

WASHINGTON (April 3, 2008) -- Veterans who last year received disability
compensation, pensions or survivors' benefits from the Department of
Veterans Affairs (VA) may be entitled to an economic stimulus payment of
at least $300. To qualify, veterans must file a tax return for 2007,
even if they aren't normally required to file.

"The President's economic stimulus benefits have a special provision for
low-income veterans," said Secretary of Veterans Affairs Dr. James B.
Peake. "VA is working closely with the Internal Revenue Service and the
Treasury Department to get the word out about this unique benefit."

Under the White House's program, payments are $300 for an individual,
$600 for a married couple filing joint tax returns, plus $300 for each
dependent child under age 17 on Dec. 31, 2007.

To qualify, taxpayers must have at least $3,000 in income in 2007.
While VA's disability compensation, pensions and survivors benefits are
not subject to income tax, the administration's economic stimulus
proposal, passed by Congress in February, allows veterans and survivors
to count those payments toward the income requirement of $3,000. To
claim the benefit, veterans -- like other taxpayers -- must file an
income tax return.

For eligible veterans who do not normally file a tax return, information
about claiming the economic stimulus payment is available in "Package
1040A-3," available from IRS offices or on the Internet at
http://www.irs.gov/pub/irs-pdf/k1040a3.pdf.

IRS is mailing a package of information to recipients of VA benefits who
did not file a tax return last year. For more information, visit the
IRS Web site at http://www.IRS.gov <http://www.irs.gov/> .