My husband is retired. He receives Soc. Sec. and a small pension. Our two children still at home and I, also, receive Soc. Sec. checks. Most of our income is not considered "Taxable", and since we still have children at home and don't make a lot, we were told that we do not need to file income taxes. Are we losing out on some benefit by not filing? Can we claim interest paid on mortgages and credit cards? Thank You!

Yes they said that if you file your ssi this year I think it is a 1020a that you can possibly get the rebate that they are giving out this year. My son and some friends of mine get the ss disability and are each getting $300. Back. ]
You should look for an independent tax place they tend to charge around $25. Whereas H and R charges over $100.

I agree that you should file this year. You shouldn't owe anything, but there is an extra benefit for all who file this year, even those on social security. It is called an economic stimulus refund. You should file by April 15th, so as not to be late. It is also suggested that you try to have your refund direct deposited into your bank account if possible, so that you can get the refund back as quickly as possible. If the refund is mailed to you, it will take longer... possibly over a month longer to get the refund.

Yes, you should both file your 2007 tax return. IRS wants you to file Form 1040A, which has been modified only for this purpose. By filing you will get stimulus rebate payment.
If you have dependents, claim them. If they are eligible for child tax credit, you will get additional stimulus rebate.

For more information on the filing Form 1040A and how much rebate you will get read: Your U.S. Tax Return: Are You Eligible for 2008 Stimulus Tax Rebate Payment?