Stimulus Confusion

[gman]

Taxpayers normally don't file but will because of stimulus. Let's say they have 5 1099's for 10.00 in interest . A couple small 1099r's and 300.00 in rent. & SS

Should a complete return (sch B, schE ) be done or only the 1040 stimulus with the social security line be completed.

Would the return later come back to haunt them because the had interest and other items the did not report>

[sidyakina81]

based on the info on IRS website, to qualify for the stimulus, you need to have at least $3,000 in income. So, you will probably need to file everyhting you have to reach that amount.

[gman]

No

SOCIAL Security alone will qualify them, but should you file all your income.

or just do a stimulus return....with soc sec only

[ecb34691]

Need to put some of the other income so as not to have zero AGI so it can be e-filed. I've heard from people in the KC area that the IRS center is already overloaded with paper without the staff. Have done several as e-file with SSA and some 1099R and 1099INT amounts, but none taxable. Have heard IRS may change the zero AGI requirement to accept these returns.
edited to answer Fuzzy = I didn't mean not to put all income on the return. IRS has also told them that they "only" have to "estimate" their SSA/VA amounts. One of their instructions says to take your monthly SSA amount x 12 since many throw away their 1099SSA's (doesn't even account for Medicare).

[Fuzzy Faced Leader]

I would put all known income in the return. Even though this is filed just for the advance rebate, it is a bonafide return, and to not include all income could be considered an incomplete, or possibly fraudulant return. Since it still results in zero tax liability, why not include it all.

[Davc]

I would put all known income in the return. Even though this is filed just for the advance rebate, it is a bonafide return, and to not include all income could be considered an incomplete, or possibly fraudulant return. Since it still results in zero tax liability, why not include it all.

Because the IRS says only to use lines 7, 14a, 40b, 44b, 44d, and the signiture section for "Stimulus Payment" returns.

[gman]

So

are you saying not to list interest and dividends---just do the social security line if that is what they have and is qualifying them for the payment

[FEDUKE404]

Explanation, please!

Long-term client has modest income (<$5k). Because of age, client is NOT receiving any Social Security benefits but is receiving private pension payments from deceased spouse's retirement fund.

2007 income consists of roughly $4k in pension income, plus some meaningless interest/dividends. There is zero income tax liability, and no wage/self employment income.

The way I read things, this person will receive zilch from the stimulus package, but had the retirement funds come from a government/veteran's pension, the stimulus payment would arrive.

Am I correct, or at least close??

Thanks!

FE

[joanmcq]

Sounds like you are right.

[Black Bart]

Duker: I think you (and joanmcq) are correct.

Long-term client has modest income (<$5k). Because of age, client is NOT receiving any Social Security benefits but is receiving private pension payments from deceased spouse's retirement fund.

2007 income consists of roughly $4k in pension income, plus some meaningless interest/dividends. There is zero income tax liability, and no wage/self employment income.

The way I read things, this person will receive zilch from the stimulus package, but had the retirement funds come from a government/veteran's pension, the stimulus payment would arrive.

Am I correct, or at least close??

Thanks!

FE

That's the way I am interpreting the rules I've read so far, although, as you are probably thinking, it doesn't really seem fair because your private-pension client is just as much a low-income person as a government-pension client. I can't see anything to do with your guy except break the bad news (I can hear the reaction now -- "Listen, I'm just as poor as that guy!").

[Black Bart]

I have the same concerns that you do, gman.

Taxpayers normally don't file but will because of stimulus. Let's say they have 5 1099's for 10.00 in interest . A couple small 1099r's and 300.00 in rent. & SS. Should a complete return (sch B, schE ) be done or only the 1040 stimulus with the social security line be completed.

I'm doing complete returns. I just can't hardly bear to send in an incomplete return, so right now I'm just filing my regular 1040s and putting everything they've got on it.

Would the return later come back to haunt them because the had interest and other items the did not report

I don't think so. I have filed returns in the past where something was left off and, if it wasn't enough to make them owe tax, then they never heard anything else from IRS.

I'm filing paper returns on these and maybe the simplest way would be, as Davc says, just to follow IRS instructions on it, but I don't use 1040As (or anything else except a 1040) and I don't like doing half-way jobs, so I'm going to go ahead as I have been doing and file a normal, complete return (like Fuzzy is saying and like Bees Knees said the other day).

Only exception, if someone's got VA benefits that don't ordinarily go on SS line 20A, then I will write "Stimulus Payment" across the top of the form. But I think I'll still fill out the rest like always -- I can't see how they can reject a correct form if they can pass these rigged-up deals on through.

[gman]

thanks

for all of your input.