Had a call from partner of a client who gets 500/wk in nontaxable disability insurance from his employer due to serious injury. Is he eligible for the 300/600 bonus? If so how does one report it? What line? Thanks
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more info on disability
Client says he is receiving worker's comp under the disability insurance of his former employer. Question is disabilty considered earned incomemfor the Econ Stim Act?
Thanks John -
Earned income for purposes of the stimulus payment is the same as earned income for purposes of EIC, with the exception of income subject to self employment tax but not income tax (for example, a minister’s parsonage allowance).
Workers compensation is not earned income for purposes of EIC. Therefore, it is not earned income for purposes of the Stimulus Act.
It should be noted, however, that you do not need earned income to get the stimulus payment. You could get the stimulus payment with income other than earned income if you have at least one dollar of tax liability and gross income exceeds the standard deduction plus personal exemption of the taxpayer and spouse.
You can calculate the stimulus payment by using this worksheet: http://www.thetaxbook.com/updates/20..._worksheet.pdfLast edited by Bees Knees; 03-09-2008, 03:22 PM.Comment
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