Stimulus Tax Return

[vegasbill]

Help!!!!
I've completed a tax return for a client who would not had to file a tax return, except she received a1099R that had a distribution code of 1 (long story and problems with the financial institution), thus a 10% penalty of $5.00.
Client has less than $3,000 for AGI. Social Security not taxable. Would this return prevent her from getting the Stimulus Payment. I know she will be asking, since there is less then $3,000 AGI and I believe the $3,000 AGI is the amount needed on a tax return.
I've look at the IRS Q&A and could not find a answer.

[DaveO]

The SS $ count

If they have over $3000 of SS income they will get $300.

[Burke]

Help!!!!
I've completed a tax return for a client who would not had to file a tax return, except she received a1099R that had a distribution code of 1 (long story and problems with the financial institution), thus a 10% penalty of $5.00.
Client has less than $3,000 for AGI. Social Security not taxable. Would this return prevent her from getting the Stimulus Payment. I know she will be asking, since there is less then $3,000 AGI and I believe the $3,000 AGI is the amount needed on a tax return.
I've look at the IRS Q&A and could not find a answer.

It doesn't matter whether the Soc Sec is taxable or not. Just receiving over $3000 in SS benefits will qualify her. Just show it on the return on line where you put gross benefits.

[vegasbill]

Stimulus Tax Return

It doesn't matter whether the Soc Sec is taxable or not. Just receiving over $3000 in SS benefits will qualify her. Just show it on the return on line where you put gross benefits.

I want to thank Burke & Dave for taking the time to respond to my post. I felt the client would still get it (she had over $19,000 in Social Sec) but I want some other input for confirmation.
Thanks again for taking the time.

[Peachie]

Just a question

Help!!!!
I've completed a tax return for a client who would not had to file a tax return, except she received a1099R that had a distribution code of 1 (long story and problems with the financial institution), thus a 10% penalty of $5.00.
Client has less than $3,000 for AGI. Social Security not taxable. Would this return prevent her from getting the Stimulus Payment. I know she will be asking, since there is less then $3,000 AGI and I believe the $3,000 AGI is the amount needed on a tax return.
I've look at the IRS Q&A and could not find a answer.

How old is the client receiving the 1099R code 1. Only reason I asked is that I had the smae thing though the t/p never received or touched the money--he rolled it over. Since it is where I am empoyed in my fulltime position, I had it corrected right away. Should there have been a code 1?

Back on topic--how much SS was received? If more than $3,000-yes she qualifies.

Peachie

[Beth]

Stimulus Tax Return

If a person has SS of over $3000, and a small pension, but does not have enough income to file a return, do they just list the SS on the 1040A, or do they have to list ALL income, even though minimal??

[ecb34691]

Basicly IRS wants to include it all so it can be e-filed (without zero AGI). Have received word that IRS has "suggested" to include at least $1 in interest for the strictly SSA ones to make them e-filable. They are "being hit with paper"! Their estimate is an additional 23 million returns this year because of this give-away. They want as many as possible e-filed. Direct deposit items will be the first payments and made and some software is being changed to include DD information on the e-filed "stimulus returns".

[Bonnie]

Is there really a penalty

[I've completed a tax return for a client who would not had to file a tax return, except she received a1099R that had a distribution code of 1 (long story and problems with the financial institution), thus a 10% penalty of $5.00.
Client has less than $3,000 for AGI. Social Security not taxable.

Not sure of the client's age, but seems as if they are receiving Social Security, they would be over 59 and a half and not need to pay the 10% penalty.

[S T]

Disability

Could it be the t/p is receiving SSA disability? then that might explain the code 1 on the 1099R even though maybe it should be a different code. So you might also have the exception to the early distribution. Don't you enter birtdates in your computer system?

Sandy

[vegasbill]

Stimulus Tax Return

I want to once again thank all who responsed to my post.
First - Yes Sandy I do enter date of birth and my software does require it. That is the easy part of the response.
As I stated problems with the financial institution who issued the 1099R - They lost a suit and had to give back certain fees they withheld on some Accounts. My client had an IRA at that financial institution and when she withdrew the money out of her IRA, they withheld the fee in question. Now, 4 years later the financial instituation is payout the fees they had withheld previouly. Since the client was under 59 1/2 at the time of the IRA wihtdrawl the financial institution coded the 1099R as a 1. You are correct Sandy the client was disabled at the time of the IRA liquidiation. But, with only $5.00 in penalty in play the client does not and I repeat does not want me to file the excption to the code 1 - form 5329. Like I stated in the orginal post this situation had a long story.
But again thanks to all who gave of their time in answering the question.