New Filing Requirement

[dyne]

Another reason to file is that a person may NOT be required to file since their income was too low and there was no tax withholding BUT they may be entitled to the up to $400 (or $800) making work pay credit because it is REFUNDABLE. Those taxpayers who
receive a pension because they are Certain Government Retirees can qualify for a credit
of $250 (or $500 if BOTH husband and wife qualify for the certain government retiree rule) which is also REFUNDABLE even though they had NO earned income and are otherwise not required to file a return.

[Jiggers]

Schedule M

Another reason to file is that a person may NOT be required to file since their income was too low and there was no tax withholding BUT they may be entitled to the up to $400 (or $800) making work pay credit because it is REFUNDABLE. Those taxpayers who
receive a pension because they are Certain Government Retires can qualify for a credit
of $250 (or $500 if BOTH husband and wife qualify for the certain government retiree rule) which is also REFUNDABLE even though they had NO earned income and are otherwise not required to file a return.

I don't think you are entitled to any refundable credit on Schedule M if you did not have any earned income.

Follow through with completing a Schedule M with $0.00 on line 1a.

[dyne]

I entered a $11,000 civil service pension and NO other income and no tax withholding into my Drake Tax Software and it reflects a $250 credit and REFUND. That is what I based my post upon! I believe this is correct but admit that it is confusing. I request that others enter this into their tax software to determine if my belief is right. Thanks and best wishes.

[spanel]

I believe the Goverment Retirement Credit, yes they will get it with no earnings.

The other, no they have to work to get the up to $400 or $800.


chris

[tpnl]

Make sure you double check . . .

most of those government employees already received a check of $250 over the summer. I have many clients that are on government retirement or social security that already received the $250. Do you think the IRS will come up with something similiar as last year with the rebates?

[David1980]

I entered a $11,000 civil service pension and NO other income and no tax withholding into my Drake Tax Software and it reflects a $250 credit and REFUND. That is what I based my post upon! I believe this is correct but admit that it is confusing. I request that others enter this into their tax software to determine if my belief is right. Thanks and best wishes.

Yes, but only if by some weirdness they didn't already get their $250. Now, I expect a TON will "forget" that they received the $250. I wouldn't touch one of those $250 refund no filing requirement returns.

[Mike Mac]

Govt retirees

Government retirees did NOT get a check for $250 and thus must use the Schedule M to see if they qualify for the $250 credit. Depending if they found another job after they retired, have self-employment income, or got a $250 check because of a VA disability or because the also got a check from Social Security because they had their 40 qtrs in and qualified for a SSN pension they may qualify for nothing more or they may qualify for an extra $150 to bring them up to the original $400 amount.

As we have all said....What a Pain

[dyne]

I agree that the $250 credit for Certain Government Retirees is ONLY for those who did NOT
receive the $250 Economic Benefit Payment. This credit replaces the economic benefit
payment they did NOT receive. Most of these taxpayers will have received the $250
economic benefit payment. How do we explain the schedule M to clients?