I just got a $600 stimulus check, but I KNOW I am not eligible-- should I try to return it, or shred it?

Question

All of my 2007 income was from an annuity and interest income. I filed a 1040A using 1099s from a retirement system and a local bank to report this income. It should have been obvious to the IRS that I had no qualifying income. And yet, they send me a check. So I'm wondering about the best way to dispose of it. Keep it uncashed and undeposited in case they notice they sent me a check and demand the money back? Or just shred it and forget about it? Or try to return it? I am in the Texas Municipal Retirement System (TMRS) and I'm wondering whether other annuitants in that system got checks they should not have.

Answer 1

Ninasgramma's answer is generally correct.  I'll add a bit. It's often not recognized that you can indeed receive a stimulus payment even though you don't have at least $3000 of qualifying income. If your total income is at least the following and you have a net tax liability, you're entitled to the payment:

$3400 Married Filing Separately

$8750 ($10,050 if 65 or older) Single

$11,250 ($12,550 if 65 or older) Head of Household

$17,500 ($18,550 if one is 65 or older, $19,600 if both) Married Filing Jointly

I suspect that your income exceeded the amount for your filing status (which was probably single) and that your net tax liability exceeded $600. (This is the amount after certain non-refundable credits and before any withholding. It can be found by looking on the following lines:

Form 1040 - Lines 57 and 52

Form 1040A - Lines 35 and 32

Form 1040EZ - Line 10

If your income was NOT at least the amount listed previously, then take a look at your 1040 form. If any of the income was listed as wages or net self-employment income, this would have qualified you erroneously. If that's the case, you should write "void" in the endorsement area of the check and mail it back the the service center that you mail your tax forms to. Enclose a note as to why you're returning the check.

But I think you're entitled to it! Feel free to email me through my profile if you have any questions.

Answer 2

Contact the IRS directly, to avoid any troubles!

Answer 3

Do not shred it!  It is best that you return the check.

However, you need to find out the right way to do this.  See if there is any contact information that came with the check.  If so, call and get instructions.  If not, you might try calling the IRS for assistance or for direction on whom to call.

If you are instructed to return the check, return it by certified mail return receipt requested (the post office can tell you what forms need to be completed.  Write "VOID" across the check.  Make a copy of everything including the check for your records.  Also make a note of the name, etc. of the person you spoke with (department, telephone number, etc.).

If you are instructed to destroy the check, write "Void" across the check, cut it in half and keep it in your records.  This is just case you are later asked to prove you did not cash the check.

This may sound like alot to go through.  However, if the Government comes asking for the money back in the future, you want to be fully prepared to prove to the Government that you never cashed the check.  Simply telling them that you shredded or did not cash the check without being able to document your story, may end up costing you alot of time in trying to convince them.

Answer 4

The check should be returned so there is no question that it will not be cashed.

Answer 5

You do not need wages to qualify for the stimulus check.  If you had pension, annuity, investment income, rental income, etc., that resulted in a tax liability, you qualified for a rebate.

Did you pay tax on your income?  Yes, you most likely did or you would not have filed a tax return.  

I bet you paid at least $600 (or at least $1 if you are married).  That would result in a $600 rebate.

Enjoy.

Answer 6

If you had any tax liability at all for the year, you are still eligible even if none of your income is qualifying income - that's the other way to qualify.  Both are ways to be eligible.  For most people, it's the "qualifying income", but if you paid even $1 of tax for 2007, the return filed early this year, you are eligible.  I'm guessing that might be your situation.  If so, enjoy the unexpected $600 - it's yours, legitimately.

Answer 7

knowing it is not yours, contact the irs, and return it, no problem! good luck!