$250 Economic Benefit Payment

[dyne]

I just had a client who received almost $20,000 in social security benefits so I entered on
my checksheet for schedule M that he DID receive the $250 Economic Benefit Payment.
But in talking to his wife she did not remember receiving this payment. Then I discovered
that he only began receiving the social security benefits in May of 2009, so he did NOT
receive the $250. What a mess!

[erchess]

Simple Solution?

I think if you don't know whether the client got that payment all you need to do is report that they didn't and e-file then if the IRS has them on the list of people who did get the payment the return is rejected you fix it and direct the client to the requisite agency to see if there has been a mistake.

Is my information out of date?

[BP.]

all you need to do is report that they didn't

I like the other way around approach. More fun to tell client their refund is increased by $250, rather than docked the $250. But yeah, it'd get kinda messy either way- as 8879's gotta be re-signed. None of those yet for me, but it's prob just a matter of time . . .

[dyne]

Update on my first post above:
The taxpayer-wife was SURE that her husband did NOT receive the $250 economic
benefit payment. The taxpayer-wife went home and found that her husband DID receive the $250 payment even though he did not begin to receive social security benefits until March of 2009. She called the SSA and they advised that her husband was ENTITLED to the SS
benefits in January 2009, thus he qualified for the $250 payment. How can we
ever know what to enter? I repeat: This is a mess!
Erchess:I feel like I am out-of-date every day due to the tax changes and complications.
Suggestion:Look up the energy credit for a asphalt roof. What I found was that it is so
complicated that the taxpayer must ask for a CERTIFICATION from the roof installer as
to whether the roof qualifies for the energy tax credit. That brings us to a new low!

[ChEAr$]

Update on my first post above:

Suggestion:Look up the energy credit for a asphalt roof. What I found was that it is so
complicated that the taxpayer must ask for a CERTIFICATION from the roof installer as
to whether the roof qualifies for the energy tax credit. That brings us to a new low!

AND the price of the qualifying shingles, roof material must be separately stated.

[JG EA]

I think if you don't know whether the client got that payment all you need to do is report that they didn't and e-file then if the IRS has them on the list of people who did get the payment the return is rejected you fix it and direct the client to the requisite agency to see if there has been a mistake.

Is my information out of date?

But since that changes the balance due/refund then a new 8879 is needed. I had one today. The one on social security did definitely receive but the one on no SS and government pension said he did not receive - return was rejected- I had them check and he did after all receive a check. So, I send them new page one and two and a new 8879 to sign and get back to me.

Otherwise everything would be wrong - right?

[Dusty2004]

Dyne

I have always had my clients obtain a document from the seller on all energy effecient items. Otherwise how do you know if it qualified for the credit?

Dusty

[dyne]

Yes, I insist upon my clients providing me with a certificate or paper which verifies
that they qualify for any energy credit claimed. But for most things I can tell them
the rules which must be met to qualify to get the credit. That way I weed out most
who might think they qualify for the credit. But now regarding the roof I do not know
what to tell them except they must go back and get a Manufacturers Certification.
This will delay the preparation of their return.

[BP.]

Otherwise everything would be wrong - right?

Right!

[ChEAr$]

Energy credits

I know that most of the items qualifying must be cost only, not including labor. however
there are some i THINK that may include labor.

Does anyone have a handy list maybe keyed to line number on the 5695 form?

[dyne]

I got another CLUE regarding the $250 Economic Benefit Payment issue this morning.
A client received almost $20,000 from social security payments during 2009 but it only began in March of 2009. He was SURE he did not receive the $250 because the SSA advised him that he would not get it because his BIRTHDAY was AFTER January.

[DonPriebe]

Here's the list you wanted ...

I know that most of the items qualifying must be cost only, not including labor. however there are some i THINK that may include labor. Does anyone have a handy list maybe keyed to line number on the 5695 form?

Qualified energy efficiency improvements (insulation, windows, doors, etc.) do NOT include installation costs.

Residential energy property costs (furnaces, water heaters, heat pumps, etc.) do include the installation costs.

It's on page 3 of Form 5695 http://www.irs.gov/pub/irs-pdf/f5695.pdf