Economic Stimulus Tax Benefits

Posted on April 7, 2008 by Dory Sutker
The very word “taxes” sends shivers down my spine. Not just because I don’t like paying them but also because I am afraid of that area of law. While in law school, I swore to my income tax professor that I would never give advice or do a tax return if he just gave me a passing grade. He refused to make that deal with me but, to this day, I never give tax advice or do my own tax return. That said, I am now going to talk about the economic stimulus package which touches on the subject of taxes.

As most of you know, on February 13, 2008, the President signed into law legislation providing “rebates” to millions of people. This includes millions of Social Security recipients. All Title II (SSDI, DIB) beneficiaries who meet the rebate eligibility criteria will receive the rebate. Rebates will be paid under two options:

Questions about Stimilus Options

1) Based on income tax paid in 2007 or
2) Based on $3000 of “qualifying income”. All types of Title II benefits will count as “qualifying income. However, a beneficiary who is claimed as a dependent on another’s tax return is not eligible for a rebate.  Irs Website for Esconomic Stimulus

SSI benefits do not count as “qualifying income.” However, the legislation does provide that rebates will be disregarded as income for needs-based federal programs such as SSI and/or for State or local programs partly funded with federal funds (e.g., Medicaid). Importantly, the rebate will not be considered a resource for the month in which it was received and the following two months.

In order to receive a rebate, beneficiaries will have to file a 2007 federal tax return. So, if you haven’t filed yet, you need to get to it.

More information is available from the Social Security Administration website SSA Website
Information about the rebate is under “news” on the left side of the SSA homepage.

To learn more about social security disability law issues please click social security disability law. To learn about our social security disability lawyer in Maryland, please click social security disability lawyers and go to our attorney bio section on Dory Sutker or Suja Varghese
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