Another Stimulus payment question

[NotEasy]

Yes, I have another one,,,

Taxpayer is getting social security
Taxpayer also have about $8,000 self-employment income in 2008.

Even if he is self-employed, I suppose the SSA will still send him $250 by June 4. Please correct me if I am wrong.

But since he also have self-employment income, he should be eligible for the other $150 (so he will get the max of $400). Does he have to wait to claim this $150 in his 2009 tax return?

[JohnH]

Yes, he will need to claim the $150 on his 2009 return.

[jimmcg]

Yes, I have another one,,,

Taxpayer is getting social security
Taxpayer also have about $8,000 self-employment income in 2008.

Even if he is self-employed, I suppose the SSA will still send him $250 by June 4. Please correct me if I am wrong.

But since he also have self-employment income, he should be eligible for the other $150 (so he will get the max of $400). Does he have to wait to claim this $150 in his 2009 tax return?

Yes and yes.

[OtisMozzetti]

When he has been getting Social Security

The Social Security that he is getting must have been there during Nov. or Dec. 2008, or during Jan. 2009, or else he doesn't get the $250 Economic Recovery Payment. I encountered one gent who is currently getting Social Security but only started to get it March 2009, which "missed the boat" for this payment during May 2009 (and I suspect permanently).

[DaveO]

The Social Security that he is getting must have been there during Nov. or Dec. 2008, or during Jan. 2009, or else he doesn't get the $250 Economic Recovery Payment. I encountered one gent who is currently getting Social Security but only started to get it March 2009, which "missed the boat" for this payment during May 2009 (and I suspect permanently).

Wouldn't he be able to claim the entire $400 credit on his 2009 return like any other self employed tax payer?

[Jesse]

Interesting

He will receive the $400 if he had earned income in 2009, but what if he did not?

For example, state employee retired in December of 2008 but will not receive Social Security benefits until June of 2009. No earned income in 2009, will he receive credit for the $250 Economic Recovery Payment when he files his 2009 tax return?

I would think it would be similar to 2008's Recovery Rebate Credit?

[JohnH]

DaveO: As a self-employed person he will be entitled to the $400 credit, but if he is eligible for the $250 payment during 2009 and receives it, he will have to subtract the $250 from the $400, leaving a net credit of $150 on his 2009 return.

[Lion]

Credit

If he wants to receive it early, he reduces his SE tax payments by that amount during 2009 (just like the withholding tables now reduce w/h by $400).