Disability

[Snaggletooth]

I left this question in the sticky post, but either no one knows the answer or else it got buried in an avalanche of other posts. Black Bart had a customer too, so I'll ask again.

Will filing a return with only disability payments qualify for the $300 "rebate?" (Not really a rebate, but we'll stick with the venacular of the masses). Disability being paid by the Social Security Administration, but it is not really social security.

I would think so, but I haven't seen anything definitive in all the material that has been presented.

Thanks, Snag

[veritas]

SSI-Does not qualify

For purposes of meeting the qualifying income requirement, the following benefits need to be reported in any combination on Line 20a of Form 1040 or Line 14a of the Form 1040A.


Social Security benefits reported on the 2007 Form 1099-SSA, which people would have received in January 2008. People who do not have a Form 1099 may estimate their annual Social Security benefit by taking their monthly benefit, multiplying it by the number of months during the year they received the benefits, and entering the number on Line 20a of Form 1040 or Line 14a of the Form 1040A. Supplemental Security Income (SSI) does not count as qualifying income for the stimulus payment.

http://www.irs.gov/irs/article/0,,id=179096,00.html

[Snaggletooth]

Thanks

Thanks to Veritas, our venerable friend, for responding.

But the link takes me to the same article I've read a dozen times, which defines the types of incomes which qualify. Nowhere, however, does it state that SSI payments do not qualify. I'm wondering if the payments by social security (regardless of old age or whatever) are considered in the largesse as being qualifying.

I don't think one could conclude from the linked article that disability payments will bring the $300 rain. However, I can't imagine Congress leaving these folks out. If enough confusion exists, this is the type of thing that can lead to a "technical correction" in the code.

[David1980]

For purposes of meeting the qualifying income requirement, the following benefits need to be reported in any combination on Line 20a of Form 1040 or Line 14a of the Form 1040A.


Social Security benefits reported on the 2007 Form 1099-SSA, which people would have received in January 2008. People who do not have a Form 1099 may estimate their annual Social Security benefit by taking their monthly benefit, multiplying it by the number of months during the year they received the benefits, and entering the number on Line 20a of Form 1040 or Line 14a of the Form 1040A. Supplemental Security Income (SSI) does not count as qualifying income for the stimulus payment.

http://www.irs.gov/irs/article/0,,id=179096,00.html

Seems to address it there.

[Black Bart]

SSA disability

...Will filing a return with only disability payments qualify for the $300 "rebate?...Disability being paid by the Social Security Administration, but it is not really social security.

I would think so, but I haven't seen anything definitive in all the material that has been presented.

Snag,

My question (and yours, I think) was if SSA disability was eligible for the rebate rather than the SSI disability issue which got mixed into the discussion.

The posters in Zee's thread ("SSA vs. SSI disability for rebate") down the page conclude that SSI is not included on an SSA-1099 because it's not funded by SSA and never reported anywhere (it's handled by the states, I think). Zee says his disabled client's (who is receiving SSA disability payments) SSA-1099 is identical to "regular" ones (the only distinctive marking is a claim number).

While it's been clarified that SSI is not eligible and is NOT included on SSA-1099 forms, I still haven't seen a definite IRS statement that our SSA disability IS eligible for the rebate. It seems logical that it would be -- we tax it like regular SS benefits and imagine the political firestorm if they excluded disabled SS recipients.

What's your opinion?

[Snaggletooth]

Thanks to All

Dave1980 I've read the webpage a dozen times and didn't pick up on that.

Must be going blind or senile, one or the other. Thanks to you and Veritas.

Bart raises the question of SSA disability versus SSI disability. Good point there, but I think SSI is paid by the SSA as well. If recipient gets a 1099-SSA, wonder how the IRS would know the difference....

Dave1980, you're new. Welcome to the board!

[Zee]

There are three types of Social Security Benefits; (1) retirement benefits, (2) disability benefits, (3) survivors benefits. SSI has two types; (1) disability, (2) aged benefits.

Social Security benefits are funded through the social security trust funds (FICA taxes), SSI is funded through general tax revenue. As such, regular Social Security benefits is considered an insurance program basd on contributions, while SSI is considered a needs-based program. They are two very separate programs.

Since the referenced IRS notation and instructions exclude only SSI, it would appear regular benefits and regular Social Security Disability can be included as earned income. The SSA doesn't even indicate it's a disability payment. But, Snaggletooth is correct. It isn't very clear.

I was wondering how SSI is reported to the recipient for tax purposes. One of the answers provided indicated there is no reporting. So, it would appear, if the taxpayer doesn't have an SSA statement I'd be careful telling anyone they're entitled to a rebate if they're using the estimate method and filing just for the rebate.

The more I learn about the rebate, the more I realize what a PITA it may create for tax preparers. I think I'm going to add a disclaimer of some sort indicating that if they qualify the stimulus will be computed automatically by the IRS based on their 2007 tax information, that any estimate of the amount they might receive is not guaranteed.