making work pay

[gman]

Have a taxpayer who started to draw social security in Dec. He did not reciecve his $250.00 Can I get that for him on his tax return?????

[gkaiseril]

You use the new Schedule M, http://www.irs.gov/pub/irs-pdf/f1040sm.pdf , see the
instructions, http://www.irs.gov/pub/irs-pdf/i1040sm.pdf , for information on how to complete. Result goes on Form 1040, line 63; Form 1040A, line 40; or Form 1040NR, line 60.

See http://www.irs.gov/newsroom/article/...204468,00.html for more inforamtion.

[gman]

Thanks,

I know to use the schedule M, but the fact that he did not qulify until Dec for Social Security .... does that qualify him or not for the $250.00??????

[gkaiseril]

The instructions are word with "... received a pension or annuity payment in 2009 ...". So if they only qualified but did not recieve a payment, then no.

[Gretel]

Is Social Security considered a "Pension- or Annuity Payment"?

[gkaiseril]

It appears the IRS treats it that way:

See the IRS post "The Economic Recovery Payment", http://www.irs.gov/newsroom/article/...204468,00.html

[ChEAr$]

Is Social Security considered a "Pension- or Annuity Payment"?

No., not atall.

[ChEAr$]

I know to use the schedule M, but the fact that he did not qulify until Dec for Social Security .... does that qualify him or not for the $250.00??????

If he has no income and not having to use schedule m to figure out that credit, then the $250
has no bearing atall.
And the tax return is not a mechanism for obtaining the 250.

[gkaiseril]

No., not atall.

It is listed as one of the payments that qualifies for the $250.00 payment. Not all pensions.

"A one-time payment of $250 will be made in 2009 to:

Retirees, disabled individuals and Supplemental Security Income (SSI) recipients receiving benefits from the Social Security Administration.

Disabled veterans receiving benefits from the U.S. Department of Veterans Affairs.

Railroad Retirement beneficiaries."

[Davc]

Who will receive the one-time $250 economic recovery payment?

The law provides for a one-time payment for certain individuals who receive Social Security, Supplemental Security Income (SSI), Railroad Retirement and Veterans benefits. If you were eligible for one of these benefits at any time during the months of November 2008, December 2008 or January 2009, you may be eligible for the one-time payment. To receive the payment, your address of record must be in one of the 50 states, the District of Columbia, Puerto Rico, Guam, the U.S. Virgin Islands, American Samoa, or the Northern Mariana Islands.


Note it is eligibility at some point from 11/2008 - 1/2009 that makes you qualify. Not when you received the payment.

[S T]

Surprise

Much to my amazement, my mother-in-law - age 99 past away Jan 17, 2009 and she received the $250 payment direct deposited into her bank account in June 2009 (same as her direct deposit).

Good thing I left the account open and had not closed it .

Sandy

[gkaiseril]

Since SSA is to make the payment, the client may need to contact them about how the payment will be made.

[taxmom34]

sorry gman

he will not get it, if he started SS in december, must mean he worked all year. he will get the 400 credit on his tax return. if he had gotten it in may, the 400 would be reduced by the 250.