Many retirees and vets do not file federal income tax returns, however all retirees and vets are strongly encouraged to file a 2007 tax return.  Filing a 2007 return will allow you to be considered for a federal tax rebate… which is part of Bush’s economic stimulus package.

Earlier this year, the IRS sent eligible seniors a package that included a simplified 1040A tax form, instructions for completing the form and an example of a form that had been completed.  If you still have yours, fill it out and mail it on.  If you trashed it, then head over to irs.gov or your local IRS office today to get another.  The deadline for filing is tomorrow October 15^th.

To be eligible for a rebate, you must have had at least $3,000 of income or had $1 in tax liability in 2007.  Depending on individual circumstances, the rebate is up to $600 for singles and $1,200 for a couple, plus $300 for each dependent child.

Don’t let your tax rebate go unclaimed.  There are a lot of things your can do with the extra cash.

Act like a tourist in your own city

Many people take for granted the little treasures that their city has to offer.  Most locals rarely visit the local tourist attractions.  But there is fun to be had at these sites.  If I had 600 bucks to spare, I’d tour my town for the weekend.

Visit area museums and art galleries.  Take a drive down the scenic road and have lunch at the 60′s style café.  Go to the theatre to watch a musical.  Take a guided walking tour of downtown.  Have dinner at the nationally acclaimed five star restaurant.  Stay the night in a log cabin in the state park.  Have a picnic at the botanical garden.

Do something out of the ordinary.   And fall in love with your city all over again.

Pay down debt

This is practical one.  And actually, this is how I spent my rebate.  There is not much gratification in paying down bills initially… it is like money in, money out.   But eventually, the satisfaction comes when the bill arrives and the balance is zero.  This could have you kissing the mailman and doing cartwheels on the front lawn.

Catch up on your vehicle maintenance

I gotta be honest… sometimes I skimp on the car maintenance.  But in the long run, it hurts me, because I always wind up spending more.  For instance, I know I am supposed to have my tires rotated every 5,000 miles.  But I kept putting it off and before I knew it, I have driven almost 30,000 miles… and never rotated the tires.  Anyway, by that time the front tires had gotten so worn that I was forced to buy a new set.

Check your vehicle’s owners manual for the manufacturer’s recommended maintenance.  I bet you that there is a whole lot more in there than oil changes and tire rotations.  And there is no reason to fret over the cost, because with $1200… you can buy a lot of maintenance.

Invest in a new business

That is how my grandmother chose to spend her rebate.  She makes the sweetest, creamiest praline candy.  So using her new found wealth, she decided to introduce the world to Ms. Febe’s Creamy Pralines.  (yeah, I know, cheap plug)  She purchased $300 worth of ingredients and made several dozen of her famous pralines.  She took them around to local drug stores, fruit stands and gas stations and gave the managers some samples.  They were so taken aback by the sweet, melt-in-your-mouth treats that they purchased the one she had on hand and placed orders for more.  Today, her candies can be found near the checkout register in 7 local stores… and hopefully soon they’ll be at a checkout register near you.  (You’ve gotta to have a dream, right?)

Anyway, vets and retirees don’t forget to file your 2007 tax return.  A federal tax rebate check and a tour guide, lower debt, healthier car or a candy business are waiting for you.