Economic Recovery Payment

[Larmil]

The one time Economic Recovery Payment of $250 will not be handled by the IRS. See http://www.irs.gov/newsroom/article/...204468,00.html .

[Larmil]

Just bumping up.

[dustoffgirl]

Thanks for the bump up I will return the favor and bump it for someone else

[taxmom34]

i read yesterday somewhere and don't remember where, that the social security adm will be distributing the checks for retirees, ssi and ssdi , but it didnt say how or when.

[JohnH]

By late May 2009, according to SSA.

Here's the link, which is also embedded in the IRS link that Larmil originally provided.

http://www.socialsecurity.gov/payment/

[joanmcq]

Thank the frakking gods.

[Larmil]

Thank the frakking gods.

All is not rosy. The economic recovery payment will be a reduction to the 'making work pay' credit on the 2009 tax return.

[Mike Mac]

Hopefully the various agencies in charge of sending out the $250 checks set up a web site similar to IRS Stimulus payment site. If we have to reconcile it any way to the making work pay credit on the 2009 return, I see tons of problems getting correct information from our clients. But that is a year away.....

[joanmcq]

I still don't know how we will know about the 'making work pay' credit since they are supposed to be adjusting the withholding tables? How the heck is this thing supposed to work?

[Jiggers]

What about self-employed?

I still don't know how we will know about the 'making work pay' credit since they are supposed to be adjusting the withholding tables? How the heck is this thing supposed to work?

Obama says that familes will start seeing an extra $$$ in their monthly paychecks in April.

What about the self-employed?

I think that is why there is supposed to be some type of adjustment on the 2009 returns filed next year to give it to them.

There are others who have no withholding, such as household employees and agricultural employees. All have SS & Med withheld, but not income tax. That is how they will get their's.

And some employers will not change the withholding as they use Circular E for the calculations, or just take a % or use some other formula for determining the withholding.

I understand that you can't get the $250 refund from SS and get the full $400/$800. That will be on the work sheet on the 2009 returns.

I just love this. More fees for me for figuring this out next year.

[David1980]

Self-employed can get the making work pay credit by reducing their estimated payments.

[JG EA]

I would like it if they just told the employer to stop the 6.2% deduction for the next $6,451.62 of wages. That would be so much less hassle than sending out new tables.

[Larmil]

I would like it if they just told the employer to stop the 6.2% deduction for the next $6,451.62 of wages. That would be so much less hassle than sending out new tables.

They have the new tables already. This is going to be a fiasco like we had a few years ago. It is always the tax preparers fault if the refund is less than last years.

[ChEAr$]

Things will even out on the 2009 returns

They have the new tables already. This is going to be a fiasco like we had a few years ago. It is always the tax preparers fault if the refund is less than last years.

I will get my $250 and since my salary is really, really low after June, the 150$ extra won't mean a thing to me, until I calculate the remaining credit next january.

But after all, $400 is better than a .... kick.