stimulus and pension money

[JenMO]

I'm receiving several calls from people who did not get their stimulus checks. These people only had income from pensions, no social security. I thought I read that pension people got the stimulus, too. How did I get so confused and how do I now explain why not?
Did anyone else misunderstand?

[solomon]

How did I get so confused and how do I now explain why not?

Ostensibly you did not read the literature. Simply say you misunderstood and apologize. No apology needed. Per IRS worksheet, if there is a tax liability on Line 57 of a 1040 client qualifies with pension only. Only certain types of income are applicable if there is no tax liability.

[S T]

A lot of confusion

I have had clients receive stimulus rebates, that I didn't think should of and then others that I thought should have received the stimulus rebate, that so far have not.

You can check the IRS website http://www.irs.gov/app/espc/ for the calculator and also TMI for a calculator (I can't find the link now, there has been some rearranging).

Another link is https://sa2.www4.irs.gov/irfof/IRServlet?app=IRACTC

Good Luck!

Sandy

[Bees Knees]

I'm receiving several calls from people who did not get their stimulus checks. These people only had income from pensions, no social security. I thought I read that pension people got the stimulus, too. How did I get so confused and how do I now explain why not?
Did anyone else misunderstand?

If the pension caused an income tax liability, then there would be a stimulus check.

Use the following worksheet provided by TTB to see if they qualify.

http://www.thetaxbook.com/updates/2007/2-23-2008_Update/stimulus_worksheet.pdf

[Jesse]

I'm receiving several calls from people who did not get their stimulus checks. These people only had income from pensions, no social security. I thought I read that pension people got the stimulus, too. How did I get so confused and how do I now explain why not?
Did anyone else misunderstand?

I was not aware of this as I have no clients that receive only such a small pension. But if I am understanding the rebate correctly it will not be totally lost if they plan for 2008, however they will not receive the rebate until 2009 when they file for 2008.

For example if in 2008 a single person w/draws a total of $9,000 (assuming this is the only income) after the standard deduction and personal exemption taken the taxpayer will have a tax liability of $6.00, therefore will receive a rebate of $300.

Or if taxpayer did not receive $3,000 in Social Security in 2007 but will in 2008 they will also receive the rebate if they file in 2009 for tax year 2008.

Am I understanding this correctly?

[joanmcq]

If the taxpayer did not get at least 3K of social security or VA benefits or railroad retirement or earned income, they don't get a stimulus regardless of how much pension or IRA distributions they have.

Period.

[New York Enrolled Agent]

If the taxpayer did not get at least 3K of social security or VA benefits or railroad retirement or earned income, they don't get a stimulus regardless of how much pension or IRA distributions they have.

Period.

Are you sure????

From HR 5140

`(2) TAXPAYER DESCRIBED- A taxpayer is described in this paragraph if the taxpayer--

`(A) has qualifying income of at least $3,000, OR (emphasis added)

`(B) has--

`(i) net income tax liability which is greater than zero, and

`(ii) gross income which is greater than the sum of the basic standard deduction plus the exemption amount (twice the exemption amount in the case of a joint return).

Single person(57) with a $20K pension and standard deduction has a tax liability of $1,300. I think Bees is correct.

[S T]

Just Checked

I just reviewed two of my California Retired Educators, who do not receive SSA or VA Benefits, only Calif PERS or STRS Retirement.

Verified using the TTB worksheet and also the IRS online Calculator, and even checked where's my stimulus refund.

Both received (both Single) $600, and both were verified as having the check mailed or direct deposit.

The Stimulus Rebate is very confusing, as some t/p have received and I doubted that they would, and others received the Stimulus Rebate and I didn't think that they would.

Make for an interesting filing season when we approach the 2008 filings.

Sandy

[Lion]

Rebate?

I received a phone call 4 July (yes, 4 July!) from a client that just (well, the 3rd, no mail delivery on the 4th) received her "catch-up" rebate covering her children $600. However, she's not yet received the $1,200 for the married couple themselves (well, it should be a few bucks less as their AGI starts the phase out). I used the IRS website which says they cannot provide any information! It did provide a different phone number. Client's trying to get through to the IRS by phone to find out what happened to their original rebate. E-filed return prior to 15 April; rebate was due long ago in May. And, the check mark is in the boxes for child tax credit on the paper copies, so don't know why they're getting the children's part in July. The government works in mysterious ways.

[Jesse]

If the taxpayer did not get at least 3K of social security or VA benefits or railroad retirement or earned income, they don't get a stimulus regardless of how much pension or IRA distributions they have.

Period.

I think that is incorrect, but I've been wrong before.

Does not mean that it is correct, but I did "dummy returns" for 2007 - a single person w/draws a total of $8,775 from their IRA, after the standard deduction and personal exemption taken the taxpayer will have a tax liability of $4.00.

IRS calculator:
Based on the information you provided, your expected stimulus payment is $300.

My ProSeries also calculated $300.

If in 2008 you have a tax liability I still think the rebate would apply, but based on 2008 income.

[Bees Knees]

Wrong...

It also applies to the 2007 return for purposes of calculating the stimulus payment.

The Social Security/VA/earned income requirement only applies if you do not have a tax liability and want to get the $300 stimulus payment. As others have said, you can have zero Social Security, zero VA, zero earned income and still qualify if you have a tax liability.

Use TTB worksheet. It is accurate.

http://www.thetaxbook.com/updates/2007/2-23-2008_Update/stimulus_worksheet.pdf