govt retiree credit

[KWF]

Would payments from a state university pension plan qualify for the govt retiree credit?

[erchess]

Have I missed something?

What is the Government Retiree Credit? Are we talking Federal or NC or SC (all of which I like to think I know something about) or some other state?

[dyne]

It is called the Certain Government Retiree Credit for those who worked for the government
in prior years and for which NO FICA was withheld. The credit goes on the bottom part
of the schedule M and is designed to provide a $250 credit for the above people who did NOT
receive the $250 Economic Benefit Payment added to their social security benefits. It
is a credit but if the taxpayer received a $250 Economic Benefit Payment, the credit
is reduced by this amount. It is difficult to comprehend. Civil Service retires who retired
prior to Jan 1, 1987 would qualify for this credit.

[erchess]

Thank You Dyne

I presume then that the answer to OP would depend on whether the person retired from the State University had FICA withheld?

[dyne]

YES! That is correct!

[JenMO]

I have a client who is a public school retiree. He is receiving his retirement, and is not 62 yet. I don't think he'll draw soc sec, but as of now is not old enough, so does it make a difference. Doesn't he get the $250 credit?

[dyne]

It is my understanding that the Certain Government Retiree Credit toward the bottom
of schedule M is different from the Making Work Pay Credit at the top in that the
taxpayer did NOT have to have earned income to get this Certain Government Retiree
Credit.If he received the $250 Economic Benefit Payment last year because he received
social security benefits or VA benefits the Certain Government Retiree credit of $250 will
be eliminated. Most of our clients will have received social security benefits and therefore
will NOT get the $250 Certain Government Retiree Credit.