Tax rebates and Social Security

[Black Bart]

Anybody know for sure if older people whose sole income is from Social Security will qualify for the rebates? Last week, our newspaper stated that they would get nothing, but a financial website today said those benefits would be "qualifying income."

Any links to the latest?

[Gene V]

Taken from the update link

Qualifying income. The term qualifying income for purposes of this credit means:
• Earned income,
• Social security benefits, and
• Any compensation or pension received under chapter 11, chapter 13, or chapter 15 of title 38 of the United States Code (disabled veterans’ and widows benefits).

Example. Doris and Milt both receive Social Security benefits each year in excess of $3,000. They have no other source of income and are not required to file a tax return for 2007. They file MFJ for 2008 and claim a refundable tax credit of $600.

Author’s comment. It is unclear at this time whether Doris and Milt in the example above could file a 2007 return reporting their Social Security benefits and zero tax liability, so that the IRS would know to mail them an advance refund based upon the 2007 return.

[Black Bart]

Thanx twice, Gene.

Once for this and once for the 1099-Q the other day. I will reciprocate by furnishing tax-irrelevant crackerbarrel wisdom at your request/convenience.

[tonia2021]

Would there be any benefit for a taxpayer (who only has social security benefits) to file a return this year? Would they get the tax credit this summer, instead of waiting for next tax season?
Are any tax prepares going to start filing these type of tax returns?

[JohnH]

Need to wait

I don't think any of us know the answer to that question until the bill is signed and the IRS puts out some guidance. They aren't going to do that in detail until it's law.