Schwartz helps clarify
the stimulus situation

By Tom Waring
Times Staff Writer

U.S. Rep. Allyson Schwartz hopes the economic stimulus package signed into law last month by President George W. Bush will head off a possible recession.
Schwartz (D-13th dist.) voted for the package, which includes more than $100 billion in tax rebate checks for American workers, disabled veterans or their widows and senior citizens.
The proposal was strongly supported by Republicans and Democrats.
"All of the experts from across the political spectrum say it will help slow down the economic downturn," said Schwartz, who sat in on hearings as a member of the House Budget and Ways and Means committees.
The two-term congresswoman discussed the particulars of the deal on Monday at a meeting of senior citizens at Our Lady of Consolation Roman Catholic Church, at 7056 Tulip St. in Tacony.
Senior citizens who pay income taxes, along with all younger workers, will automatically receive the rebate check.
The 20 million seniors who live on their Social Security benefits, as well as 250,000 disabled veterans or their widows, will also receive checks as long as they fill in their name, address and Social Security number on a 1040A form by the regular tax return deadline of April 15.
"You just have to fill out that form, and the IRS will send you three-hundred dollars. That’s a pretty good deal," Schwartz said.
The lawmaker said she voted for the bill because it was a timely, temporary fix targeted at middle-class people.
The rebates go to anyone who earned at least $3,000 in 2007. Individuals who made $87,000 last year or couples with incomes of more than $174,000 will get no rebate. The income caps are increased by $6,000 per child 17 years old and younger.
Illegal immigrants are ineligible for the rebates.
"We are reaching middle-class taxpayers," said Patricia Healy, a tax consultant at the Internal Revenue Service’s Philadelphia office.
The rebates will be up to $600 for individuals and $1,200 for couples, plus an additional $300 for every child who is age 17 and under by Dec. 31, 2007.
Elderly people whose only income is from Social Security and veterans who live on disability payments will receive $300 if they are single and $600 if they are married.
Children who earned more than $3,000 in 2007, but who are claimed as a dependent on their parents’ tax return, do not qualify for a rebate.
The IRS will begin sending out checks in May, calculating rebates based on 2007 tax returns submitted by April 15. Taxpayers will receive them either in the mail or by direct deposit to their bank no later than July.
Unlike the 2001 tax rebate checks that were taxed on 2002 returns, these rebates are tax free and will have no effect on 2008 returns that will be filed next year.
Schwartz said the rebates would come in handy for most people.
"The cost of everyday living is going up," she noted.
The congresswoman cited increasing costs for prescription medication and other health care services and gasoline and other energy needs.
In addition, she pointed to stagnant wages and recent job losses nationwide.
While the national unemployment rate dropped from 4.9 percent in January to 4.8 percent in February, there was a net loss of 63,000 non-farm payroll jobs, the biggest drop since March 2003. The biggest hits came in construction, manufacturing, retail and temporary staffing firms. Experts attribute the drop in unemployment to fewer people looking for work.
Healy and Schwartz told the seniors that no government officials would be contacting them to ask for personal information related to the rebates. If someone calls, they said, it’s probably a scam. They suggested asking for the caller’s name and phone number and calling them back.
"Be really, really careful not to give them information," Schwartz said.
An IRS official will be available to answer questions at Schwartz’s office at 7219 Frankford Ave. on the following three Tuesday mornings: April 1, 8 and 15. More information is available by calling the congresswoman’s office at 215-335-3355.
Schwartz said people receiving rebate checks can deposit them in their bank for savings or use them to pay bills or buy an appliance or something else.
"Whatever you want," she said. ••
Reporter Tom Waring can be reached at 215-354-3034 or twaring@phillynews.com