Client received disability reported on W-2 plus Social Security. Looking at Schedule M it appears that this W-2 income qualifies for the credit. Anyone disagree?
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Looks good to me.
Looks good to me. If it's on a W2, it is being treated as wages.Evan Appelman, EA -
how about the $250
did client also receive the $250 from social security in may, 2009? i would think disability on a w2 is short term insurance payment? am i going off in different direction?Comment
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Yes, $250 was received but I don't understand the question.Comment
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Not for sure
Gretel,
I am thinking that because client received W-2 for disability or third party sick pay, etc, and also social security benefit ---- and the client received the $250 check from SSA in the summer - then you will have to complete the Schedule M
W-2 disability - 3rd party sick pay will be line 7 and you have to indicate the $250 payment from Social Security.
So then is the Making Work Tax Pay Credit $ 400 for the W-2 (disability/3rd party) and a $250 payment reduction from SSA?
I am still "fuzzy" on this application when preparing the tax return - not as easy as the stimulus rebate last year
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SandyComment
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Sandy, this is what I came up with, a remaining credit of $150. On Schedule M are several pay types that need to be considered but disability on W-2 is not one of them.
The credit was probably not meant for these types of payment but unless it is stated in the law one still will get it.Comment
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I have a return with W-2 disability payments. I think the Making Work Pay credit will apply but I wanted to check to see has anybody found any information to the contrary?Comment
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ScheduleM
These type disability payments are eligible for the EIC so I don't think there would be any difference for the MWP credit.Comment
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