$250 Social Security Payment

[thomtax]

I received an email from Catherine Murphy, the senior stakeholder liaison for Missouri. I've seen several discussions, but don't know if there was ever a conclusive answer. In this email is the statement "Although it will not show on SSA 1099 forms, the $250 payment that Social Security recipients received can be verified by Social Security Administration at 800-772-1213. This amount is used in calculating Schecule M, the Making Work Pay and Government Retiree Credits."

If this is a repeat of anything posted previously, I apologize.

LT

[Jiggers]

$250 payment

I received an email from Catherine Murphy, the senior stakeholder liaison for Missouri. I've seen several discussions, but don't know if there was ever a conclusive answer. In this email is the statement "Although it will not show on SSA 1099 forms, the $250 payment that Social Security recipients received can be verified by Social Security Administration at 800-772-1213. This amount is used in calculating Schecule M, the Making Work Pay and Government Retiree Credits."

If this is a repeat of anything posted previously, I apologize.

LT

But you can't call SSA. Your client must do it. They will not give this information to the return preparer. Isn't that lovely. I can see our clients sitting in our office, making that call, and either getting a busy signal or getting put on hold for 30 minutes.

[Larmil]

Called that number!

I received an email from Catherine Murphy, the senior stakeholder liaison for Missouri. I've seen several discussions, but don't know if there was ever a conclusive answer. In this email is the statement "Although it will not show on SSA 1099 forms, the $250 payment that Social Security recipients received can be verified by Social Security Administration at 800-772-1213. This amount is used in calculating Schecule M, the Making Work Pay and Government Retiree Credits."

If this is a repeat of anything posted previously, I apologize.

LT

Sorry, I stand by my previous post that I am going to assume the client got the payment if they meet certain guideline.

The call took 17 minutes. Unless you know the clients date of birth, place of birth and mother's maiden name you will get no info.

[JohnH]

I tried it just for kicks, just to see what would happen. After getting some automated lectures about swine flu and COLA adjustments, it had trouble figuring out why I was calling & tried to switch me over to a person, so I hung up.

[thomtax]

I appreciate hearing of your experiences. I had one I was going to call on next week, but will rethink that now.

LT

[taxea]

Social Security Payment

Doesn't the client know whether they got the payment and if they don't remember have them call SS. This is info they should be providing to you, not info you should have to search for.

[Larmil]

Doesn't the client know whether they got the payment and if they don't remember have them call SS. This is info they should be providing to you, not info you should have to search for.

Some of the clients are elderly and they really don't know if they got the payment. I will stand my policy of assuming they got the payment if they were eligible.

[S T]

I guess

I am thinking I am going to take Larmil's stand and also just "presume" that the t/p received the $250 - it is too bad the SSA and the IRS didn't give us the tools to research and confirm this issue.

I have already spoken with clients, that thought I was talking "Greek" and don't know anything about it and have asked them to see if they can find their bank statement for the May-August 09 time period. That is a huge issue for them to complete the task when you are dealing with 80-90 year seniors.



Sandy

[Jiggers]

Clients don't remember

Doesn't the client know whether they got the payment and if they don't remember have them call SS. This is info they should be providing to you, not info you should have to search for.

Not just elderly clients that don't remember. One client brought in her and her husband's tax information. Only one $250 payment. Questioning her I found out that her husband receives his check by mail, not direct deposit, and he probably cashed the check!

Another client called saying she received a $7,000 from some insurance company and she did not get the money. I checked her bank statements and no payment. However, I checked last year's return and copies of her tax information that I have. There was a 1099 that looked like the one she received. Just a different name. I compared addresses and EIN and determined that the insurance company changed names.................. Problem solved.

I tell clients in my year-end information checklist that I send out to be sure bring certain documentation: property tax receipts, 1098's, 1099INT & DIV, etc. You would be surprised at those, and not just elderly, that have to make a second AND third trip to my office to bring in their information. They also "forgot" the questionaire, engagement letter, mileage statement, etc.

Why couldn't SSA just put the amount on the 1099SSA, like it was reported that they were going to do? SSA said the $250 was not taxable. It isn't. But it could play into the Schedule M calculation!

[Bees Knees]

The value of an organizer.

I use TTB organizer. There is a question on page two that asks if they received the $250 payment from Social Security. I mail each client an organizer along with a letter that asks that they answer all the yes or no questions on page two. They do not have to fill out the rest of the organizer if they have their income and expenses organized in some other fashion. However, I do ask that they answer the yes or no questions.

Obviously if they check the yes box when asked if they got the $250, the issue is settled.

If they check the no box, then I will inquire about it.

If they do not answer the yes or no questions, I will check to see if they qualified to receive the payment, and if so, tell the client I am assuming you received that extra $250 from Social Security last summer. Then I will judge their reaction to see whether or not I need them to go back into their checking account to find out for sure.

I feel it is our duty to inquire about these matters. If it takes extra time on our part, the solution is to raise our fees…not try to cut corners and assume things that may or may not be true.

[Lion]

Last year...

Last year there was a website that took just moments to confirm the amount. I checked for all my clients and printed out the page for my records. This year it means a POA or explaining to an elderly client who to call and what to ask or wasting all that hold time while the client sits here with me. And, most of my elderly clients don't actually come to my home office but mail me their items or have me send an assistant to pick up. What's the form for a POA to the SSA? This isn't a good time to raise my rates that much.

[Zee]

Some of the clients are elderly and they really don't know if they got the payment. I will stand my policy of assuming they got the payment if they were eligible.

If their SS is direct deposited, they may not pay attention, or know. I don't think anyone received notices of the extra amount, did they?

[AJsTax]

This is a non-issue

for most of our elderly clients that have trouble remembering if they received a payment or not. Notice that I said most, not all. If the client does not have earned wages or income and does not have a government pension then there is nothing to worry about, the issue does not affect them at all.

[BP.]

not a non-issue

I have plenty o' clients (in their 60's - so not elderly ) who receive wages as well as SS, so it'll be an issue all right.

[Larmil]

FAQ on the SSA Website

I have plenty o' clients (in their 60's - so not elderly ) who receive wages as well as SS, so it'll be an issue all right.

shows the criteria for payments and those do not qualify do the payment. As I said before those who met the criteria for for payment will be assumed to have gotten the payment unless the can show me why they didn't. We cannot verify if they got the payment (I wonder how the IRS can) or not.