FYI....


VA Economic Recovery Payments for Disabled Vets Coming Soon

As mentioned in the 13 March 2009 Newsbytes the recently passed Economic Stimulus bill requires the Department of Veterans Affairs (VA) to make a one-time economic recovery payment of $250 for disabled veterans. FRA has been informed that these VA payments are scheduled to be issued in June 2009.

Wray...

Bet we get this before we see are back pay!!! I'll take it.

Mike

I bet we will too.....

Wray..

Is this stimulus pay just for vets receiving disability pay and if so at what percentage disable do they have to be to receive this? Should we believe them considering how they hosed up everyones concurrent pay?

quote:

recently passed Economic Stimulus bill requires the Department of Veterans Affairs (VA) to make a one-time economic recovery payment of $250 for disabled veterans.

I don't know the answer to that... as stated above, the answer lies in that stimulus bill... I guess you could google it.. I haven't done that as of yet.

Wray...

I received a letter dtd 26 May announcing Good News for a one-time payment of $250. to eligible VA beneficiaries being released in June under the American Recovery and Reinvestment Act. If you haven't already gotten a similar letter, here's the basics of it.

The payments are separate from your monthly entitlement. You'll receive it in the same manner as your monthly payment (Direct Deposit or paper check).

If you are receiving Social Security Income (SSI) or Rail Road Retirement Board, you will not receive a separate payment from VA (you'll get one under that program). If you receive more than one payment, return the VA payment or contact your bank and have them return the direct deposit. Also, if you owe the Govt for any reason, this payment will go towards that debt, not to you.

As of today, I haven't received it yet. Anybody else?

I read something interesting on this not included in the letter . . . next tax season, they'll be taking it back via your taxes. I'll track it down so I can reference it. Just another fleecing of America, two tax seasons in a row!

I got mine last Thursday....

Wray...

Check the other thread here about Taxpayers To Get Rude Suprise. Maybe it should be posted on the PCP too for widest dissemination.

If I'm reading this properly, some of us could get a double whammy with this Great Idea next year! Stimulus check from the VA and withholdings adjusted by someone other than me.

Thanks Wray! Any insight or thoughts on this issue?

No not really.. I just noticed it got deposited in my account... I'm not sure of what makes people eligible for it... and as far as taxes, it's not worth worrying about...

Wray...

got mine over a month ago

quote:

Originally posted by Wray:
No not really.. I just noticed it got deposited in my account... I'm not sure of what makes people eligible for it... and as far as taxes, it's not worth worrying about...

Wray...

Wray,

If this money is a pre-refund on next years taxes, or taxable money, many people need to worry. They have lowered the money taken out of peoples checks, but they are still liable for their normal taxes at the end of the year.

My mother in law owes taxes at the end of the year. By lowering the amount of money withheld for taxes , she will end up owing more money in taxes at the end of the year.

EMC is correct. The Pay Center changed our withholding as per the new tax schedule. All that means is a lower withholding when you do your taxes. And if you are like many who manage their withholding to match what is owed, you're are going to owe instead of getting a refund. What I did was set up an additional amount to be withheld to equal the reduction. Therefore I'm withholding the same as I did and I won't owe.

Thanks EMC & CDR Ted.

That's the way I was seeing it. Your right Wray, the $250. is not much to worry about for next years taxes, by itself. However, if you add it to the adjusted withholdings on retirement, plus any other taxable income, it could add up by the end year. It's not enough to notice on a monthly or bi-weekly basis, or make any investments, or major purchases to "stimulate the economy." But we're being told we're "getting stimulus assistance to help us through this recession."

There are No Free Lunches, but I'm not sure we're even getting fries with this shake. I suppose those in this situation should get ahold of the new tax schedule and adjust withholdings accordingly, and pass the word, so we don't get rolled next year for all the Good Will of this year.

Trying really hard to keep the politics out of this . . .

YN102

I'm ignorant (in the true sense of the word)...is there a formula for taking taxes out of your paycheck/retirement check so that at the end of the year you get nothing back nor owe anything. I know it's probably complicated. How many dependents should you claim to make it even out? Is it that simple. Thanks.

2504204, I was an accountant and what I do is figure my taxes using IRS form 1040-ES. There's instructions that are pretty simple. I also use IRS Pub 15-T which provides the amount to be withheld based on status and number of dependents. You might be able to call the PayCen for help - they've been good providing me help. Call me if you need help- check the white pages in Jacksonville Beach, FL.

CDRTed

This message has been edited. Last edited by: CDRTed,

CDRTed...Thanks..by the way when I was stationed in Mayport I lived on 29th st in SoJax beach. Almost retired there. Was one of my favorite places.

Finally arrived today, just before the Eagle! One trip to the grocery store took care of that!

Live from the AP Wire:

Taxpayers may get unwanted surprise

A tax break created by President Obama to spur spending and the U.S. economy last spring may have to be partly repaid by about 15 million filers in April.



By STEPHEN OHLEMACHER, The Associated Press

November 17, 2009

WASHINGTON — More than 15 million taxpayers may owe the government $250 or more because of how the IRS last spring set up President Obama's tax break that was designed to help consumers spend the U.S. economy out of recession.

Individuals with more than one job and married couples in which both spouses work may have to repay the government $400, either through a smaller tax refund or a larger tax bill, according to a report released Monday by the Treasury Department's inspector general for tax administration. Social Security recipients who also earn taxable wages may have to repay $250.

The tax credit, which is supposed to pay individuals up to $400 and couples up to $800, was Obama's signature tax break in the massive stimulus package enacted in February. The credit has increased weekly paychecks for 95 percent of working families, giving them cash to help boost consumer spending during the worst economic recession in decades.

Workers concerned about whether they are withholding enough taxes can use a calculator on the IRS Web site to find the appropriate amount that should be withheld.

Taxpayers can adjust their withholding by filing a new W-4 form with their employer. But with only a month and a half remaining in the 2009 tax year, it's getting late to make adjustments.

Most workers started receiving the credit through small increases in their paychecks in April. The tax credit was made available through new tax withholding tables issued by the Internal Revenue Service.

The withholding tables, however, do not take into account several common categories of taxpayers. And that could force some people to repay what the government gave them.

For example, a worker with two jobs gets a $400 boost in pay at each job, for a total of $800. That worker, however, only is eligible for a maximum credit of $400, so the remaining $400 will have to be paid back at tax time – either through a smaller refund or a payment to the IRS.

The IRS recognized there could be a similar problem for married couples if both spouses work, so it adjusted the withholding tables. The fix, however, was imperfect.

A married couple is eligible for an $800 credit. However, if both spouses work and make more than $13,000, the new withholding tables give them each a $600 boost – for a total of $1,200.

There were 33 million married couples in 2008 in which both spouses worked. That's 55 percent of all married couples, according to the Census Bureau.

Also, a single student with a part-time job gets a $400 boost in pay. However, if students are claimed as dependents on their parents' tax returns, they don't qualify for the credit and would have to repay it when they file their returns.

Some retirees face even bigger headaches.

More than 50 million Social Security recipients received $250 payments in the spring as part of the economic stimulus package. Those lump sum payments were intended to provide a boost for people who didn't qualify for the tax credit.

However, the payments were sent to many retirees who also received the tax credit. Those retirees will have the $250 payment deducted from their tax credit – but not until they file tax returns next year, long after the money may have been spent.

"More than 10 percent of all taxpayers who file individual tax returns for 2009 could owe additional taxes," said J. Russell George, the Treasury inspector general for tax administration.

Sen. Chuck Grassley of Iowa, the senior Republican on the Senate Finance Committee, called problems with the tax credit "another unfortunate example of what can happen when Congress and the White House rush through legislation like the stimulus without thinking through the consequences."

The tax credit is also available for 2010. George said the problems will continue if workers don't adjust their withholding for next year.

For many, the new tax tables will simply mean smaller-than-expected tax refunds. The average tax refund this year was about $2,800. A little more than three-fourths of the 143 million taxpayers filing a return last spring received refunds, according to the IRS.

But for 15.4 million taxpayers, the new tax tables will mean an unexpected tax bill. The IRS was aware of the issues when the withholding tables were released last spring and waged a public awareness campaign to get people to check their tax withholding, said Michael Mundaca, acting assistant treasury secretary.

"It's an approximation and therefore for some people there will be overwithholding and for some people there will be underwithholding," said Mundaca.

Copyright © 2009 MaineToday Media, Inc.

God Bless the United States of America!

Did our taxes on Turbo Tax and sent them in... I got an error back that I forgot to add my $250.00 stimulus... Not a big deal, so I added it... The $250.00 raised my taxes $227.00, so my net from the "stimulus" was a fat $23.00...I feel so stimulated...

Gunk