Volunteer Firefighters Credit

[Oxtrainer]

Where do I find some information on a Volunteer firefighters credit for 250? Or does it
exist? Thanks for any response.

[Burke]

<< Or does it exist?>>

Not that I know of.

[taxmandan]

Where do I find some information on a Volunteer firefighters credit for 250? Or does it
exist? Thanks for any response.

It's part of the new Stimulus law that includes the "rebate" law. I think it's up to $360 ($30 per month) for reimbursement for volunteer firefighters who get some sort of compensation from the agency.

[SueBaby]

Where do I find some information on a Volunteer firefighters credit for 250? Or does it
exist? Thanks for any response.

I am from La and it is for $500. It is on the state and if you have Drake it is on La sch E and all you have to do is ck mark the volunteer firefighter. It will give them the $500.

[Burke]

It's part of the new Stimulus law that includes the "rebate" law. I think it's up to $360 ($30 per month) for reimbursement for volunteer firefighters who get some sort of compensation from the agency.

Do you have a cite for this? No mention on IRS website or CCH briefing info.

[Exponet]

Volunteer credit

Im also from Louisiana with the ATX MAX program. Sch E lines 4a - 4h (exempt income) new this year.

[SueBaby]

Im also from Louisiana with the ATX MAX program. Sch E lines 4a - 4h (exempt income) new this year.

Got papers from Baton Rouge that is why I know. Had alot of them this year too. Glad for them they and Police and school teachers Should get something every year. I do believe this IS every year about firefighters.

[Bees Knees]

The new federal exclusion for volunteer firefighters is part of the mortgage bill. TTB updates covers the details here:

http://www.thetaxbook.com/updates/2007/1-25-2008_Update/wns-8-12.pdf

Maybe some states have their own version as well for state tax purposes.

[ChEAr$]

firefighters

Thanks for the post, Bees.

Most questioners will think it applies to 2007, which it doesn't of course.

And then next year, most volunteer firefighters will think they get some kind of credit
or deductions whether or not they receive any "reimbursements".

After all, the "guys at the firehouse said so."!

[Barb]

Volunteer Firefighter $30/Mo credit

I'm confused on this. The client says he gets a credit but I can not find any place to put it. Is this a tax credit or a deduction the fire dept. takes off the money the firefighter gets. My guy gets a 1099 MISC for the runs he makes. Also, he is a KY vol. firefighter.

Can anyone help me clear this up?

[BOB W]

In NY it is Form IT 245 and it is limited to $200, $400 if both H and W are involved.

[Barb]

Firefighter in KY

I have found in several Federal Pubs that there is a non taxable $30/mo for volunteer firefighters, but it doesn't say anything about where to deduct it.

I also found in Pub 15-B, that it is not included in gross income. This is leading me to believe the Vol. firefighter should be paid on a W2 that does not include the $30/mo in taxable wages. However, our Volunteers are paid on 1099 MISC.

Should I reduce the 1099 MISC by the $360?

[Jesse]

Why is he paid on a 1099MISC? Where do you report the income - line 21 or schedule C? You are probably correct in that he should be receiving a W-2 but not sure of all of the circumstances.

The fire department is suppose to deduct this $30/month from the W-2 income, our local volunteer fire department did not and will not correct any W-2's, so I have been taking the $30/month as a line 21 deduction and writing in "Qualified volunteer emergency response pymts not deducted on W-2".

If you do this check your state laws, for Wisconsin I then need to add it back into income as they do not allow for the deduction.

[Barb]

Firefighter Credit

Thanks a bunch. I have been looking all over the place to figure this thing out. I don't know why this was never mentioned in any of my update classes.

I'm not sure if he WAS paid on 1099MISC now. He didn't actually give me the 1099, just said he had it. It maybe a W2. I'm having him bring it in to me so I know exactly how to report this. If it is on a 1099MISC, I think I will still deduct it on Line 21 and see what happens.

[Gene V]

From Pub. 963

Exclusion for Volunteer Firefighters and Emergency Responders

Beginning in 2008, and through 2010, qualified emergency response organizations may exclude certain amounts from income, social security and Medicare wages amounts paid to any firefighter or emergency responder. This includes:

1) Up to $30 for each month in which any services were performed during the year, from reimbursements, expense allowances, or any type of compensation. The maximum exclusion is $30 x 12 months. or $360 per year.

2) Any tax reduction or abatement provided based on service to a volunteer fire or emergency response organization.

No deduction may be taken by these individuals on their income tax returns for amounts that were excluded under these provisions.

Looks like the employer is suppose to take the deduction before they issue the W-2 or 1099
If they don't--then I would deduct on line 21 like Jesse said.