?WE filed our income only to get the child tax credit sense my husband was deployed we didnt make under the amount for the eic so my question is Will the child tax credit income be looked at as earned income when they decide who gets the checks and how much? The way i read it is there looking at eic income for married filing jointly with children or will they see we have children because of the child tax?I credit and go by that information?I know it just was announced but if anyway can interupt it better then me as to who qualifies that would be great I was really dissappointed this year that the military included all my husbands extra was pay in his gross income it really put us over for qualifing for Eic

His deployment pay was OPTIONAL to claim as income. You do NOT have to claim that as taxable income.

Hr Block said in order to get any credit we had to claim his combat pay sense we had no other income i didnt work and his income ws 50,000 it included all his hazard pay etc i didnt think they would include that he ws only a E-5 and about 4mths ago made E-6 . So she icluded our combat pay and we made over the 39,000 for married filing with two or more children so we didnt get the eic credit just the child tax credit of 2,000

Since I am disabled SSDI and receive Army retirement pay that some of it is taxable is that counted as income for the purpose of this tax rebate, I have to claim it on my taxes so I'm thinking it should be considered as income just like if I was working. Anybody got and answer for this. Sgt D

"Individuals with adjusted gross income of up to $75,000 would be eligible for a $600 rebate, while married couples filing jointly with an AGI up to $150,000 would receive $1,200. After those income levels, the rebates start phasing out. Taxpayers with children would receive an additional $300 per child.

Meanwhile, workers who don't earn enough to pay income tax but have earned income of at least $3,000 would be eligible for a $300 rebate, or $600 for couples filing jointly."

That is the rebate broken down.

quote:

Originally posted by sgtd6970:
Since I am disabled SSDI and receive Army retirement pay that some of it is taxable is that counted as income for the purpose of this tax rebate, I have to claim it on my taxes so I'm thinking it should be considered as income just like if I was working. Anybody got and answer for this. Sgt D

The likelihood is "YES". However, the plan has hot yet been finalized so don't count your chickens before the eggs have hatched!!!-

quote:

Originally posted by 11798747:
Hr Block said in order to get any credit we had to claim his combat pay sense we had no other income i didnt work and his income ws 50,000 it included all his hazard pay etc i didnt think they would include that he ws only a E-5 and about 4mths ago made E-6 . So she icluded our combat pay and we made over the 39,000 for married filing with two or more children so we didnt get the eic credit just the child tax credit of 2,000

The excluded income was reported but not as "taxable income". You may have chose to include the income as taxable in order to receive the earned inocme credit if your qualifying income was low enough. However, it is not necessary to include in taxable income (excluded from earnings in a combat zone) in order to qualify for the child tax credit.

You'll notice, on your W-2, that you have paid Social Security & Medicare Tax!!- If your only income was from a combat zone, that is the income used by tax services when submitting your claim to IRS. If you had chose to report the excluded as taxable, and your income was low enough, you might have qualified for the Earned Income Credit AND the child tax credit.

Had Block reported your pay as taxable, you may have gotten the tax credit of $2000 but you would have owed the government an additional tax of close to $4000 (rough guess)!!-

quote:

Originally posted by 11798747:
?WE filed our income only to get the child tax credit sense my husband was deployed we didnt make under the amount for the eic so my question is Will the child tax credit income be looked at as earned income when they decide who gets the checks and how much? The way i read it is there looking at eic income for married filing jointly with children or will they see we have children because of the child tax?I credit and go by that information?I know it just was announced but if anyway can interupt it better then me as to who qualifies that would be great I was really dissappointed this year that the military included all my husbands extra was pay in his gross income it really put us over for qualifing for Eic

The likelihood is "YES". However, the plan has hot yet been finalized so, as I stated in another contribution, "Don't count your chickens before the eggs have hatched!!!-"

Greetings and special blessings.

Well, they just stated on the news tonight that the refund is now at $500.00 for single and $1,000.00 for a couple, I did not hear anything about the $300.00 per child.

I still do not know if us retired people who do not have an earned income with get anything. Would be nice to have, but I really do not need the refund, however I know there are a lot of people who are not getting that much in SS, SSDI and retirement.

May God richly bless and keep each of you.

In His Service,

Grover

I pay taxes on my army retirement just like the working folks do. So why shouldn't we get the refund. They wanted to give it to illegal's and that really doesn't make any sense. I'm discusted with that whole bunch in DC, and if Hillery the witch (with a capital B) gets elected just watch the senior folks leave the military as fast as they can file for retirement. Sgt D

Anyone who pays income taxes will receive the rebate, regardless of the source - SSDR, SSDI, Military Retirement, Earned Income or whatever. Basically if you file an federal income tax return you will get a refund. They would get $600 for a single person or $1,200 per couple.

If you have earned income but not enough to file a tax return, you will receive the lower amount. They would get $300 per adult.

Those with dependent children will add $300 per child.

It is still not law. The Senate wants to change it a bit.

Well, I think the law has now been passed and the President should have signed it by now. The checks or deposits are due in May 08.

The Senate did add in the Disabled Veterans and SS people at $300.00 each. Sounds like a disabled Vet who is drawing SSDI will get $600.00.

The normal rate is 500.00/1,000.00 or 600.00/1,200.00 plus 300.00 per child.

Grover

Greetings and special blessings to one and all.

Here is some critical information reference the President's current rebate package that we should get checks/deposits in the amount of $300.00 to $1,200.00 plus $300.00 per child, with no limit on the number of children.

"What do I have to do to get one?

You must file a 1040 or 1040-EZ federal tax return for 2007.

Some people are normally not required to file a return. To get the rebate, however, they have to file a federal tax return."

I have checked this out on several websites doing a search on "DELETED" . Everyone is saying the same thing.

If you go to "DELETED" and click on the free file, it will be very simple to enter your information. It will ask for your state, but you do not have to file a state return. You can provide a PIN and do an E-File. Be sure to enter the information for your spouse also.

We should make sure all of our senior friends get a file done.

Any questions, please let me know.

May God richly bless and keep each of you.

In His Service,

Grover


Edited for content

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

Here is the full scoop right from the IRS Website:

http://www.irs.gov/irs/article/0,,id=179096,00.html

Stimulus Payments: Instructions for Low-Income Workers and Recipients of Social Security and Certain Veterans’ Benefits


FS-2008-16, February 2008

Some low-income workers and recipients of Social Security, certain veterans’ benefits and certain Railroad Retirement benefits may qualify for economic stimulus payments this year from the federal government.

In most cases, payments will range from $300 to $600 for individuals and $600 to $1200 for joint filers. Taxpayers may receive $300 for each qualifying child.

Most taxpayers do not need to take any extra steps to receive the payment beginning in early May.

But there are some exceptions.

Individuals who might not otherwise be required to file a 2007 tax return will need to file a return this year to receive the stimulus payment. The return must show at least $3,000 in qualifying income.

In other words, low-income workers who had at least $3,000 in earned income in 2007 but do not otherwise earn enough to be required to file a federal tax return need to file a return in order to get the stimulus payment. Likewise, Social Security recipients, veterans and retired railroad workers who might not otherwise need to file a tax return must do so to receive the economic stimulus payment.

Certain Benefits Count toward Qualifying Income

Normally, certain Social Security, Railroad Retirement benefits and certain veterans’ payments are not subject to income tax. However, the economic stimulus law passed in February contains a special provision allowing Social Security recipients and recipients of certain veterans’ benefits and certain Railroad Retirement benefits to count those benefits toward the qualifying income requirement of $3,000 and thereby qualify for the stimulus payment.

This means a taxpayer who had, for example, $500 in earned income and $2,500 in any combination of the benefits described above can count those benefit payments toward his or her qualifying income to reach the $3,000 earned income requirement, even though the individual would not otherwise owe taxes on such income.

For purposes of meeting the qualifying income requirement, the following benefits need to be reported in any combination on Line 20a of Form 1040 or Line 14a of the Form 1040A.

*
Social Security benefits reported on the 2007 Form 1099-SSA, which people would have received in January 2008. People who do not have a Form 1099 may estimate their annual Social Security benefit by taking their monthly benefit, multiplying it by the number of months during the year they received the benefits, and entering the number on Line 20a of Form 1040 or Line 14a of the Form 1040A. Supplemental Security Income (SSI) does not count as qualifying income for the stimulus payment.

*
Railroad Retirement benefits reported on the 2007 Form 1099-RRB, which recipients would have received in January 2008.

*
The sum of veterans’ disability compensation, pension or survivors’ benefits received from the Department of Veterans Affairs in 2007. People are allowed to estimate their annual benefit by taking their monthly annual veterans’ benefit, multiplying it by the number of months during the year they received benefits, and entering the number on Line 20a of Form 1040 or Line 14a of the Form 1040A.

People should note that Line 20a of Form 1040 and Line 14a of the Form 1040A are designated for Social Security. To qualify for the economic stimulus payments, these lines should also be used to include any qualifying Railroad Retirement or veterans’ benefits.

For Those Who Have Already Filed

Some recipients of the benefits described above may have filed a 2007 tax return reporting at least $3,000 in qualifying income. They do not need to do anything else. They will begin receiving their stimulus payments in early May.

Others may need to amend a previously filed tax return to include benefits to reach the $3,000 qualifying income level. Adding these benefits on an amended tax return will not increase an individual’s tax liability but will establish eligibility for the stimulus payment. Taxpayers can use IRS Form 1040X to amend a tax return in order to
qualify for the stimulus payment.

Free Tax Help Available

Individuals who need to file a return this year to receive a stimulus payment may be able to take advantage of thousands of free tax preparation sites nationwide for low-income and elderly taxpayers.

The Volunteer Income Tax Assistance (VITA) program provides help to low- and moderate-income taxpayers. Call 1-800-906-9887 to locate the nearest VITA site.

The Tax Counseling for the Elderly (TCE) Program provides free tax help to people age 60 and older. As part of the IRS-sponsored TCE Program, AARP offers the Tax-Aide counseling program at more than 7,000 sites nationwide during the filing season. To find an AARP Tax Aide site call 1-888-227-7669 or visit the AARP Web site.

Grover

quote:

Originally posted by 11798747:
Hr Block said in order to get any credit we had to claim his combat pay sense we had no other income i didnt work and his income ws 50,000 it included all his hazard pay etc i didnt think they would include that he ws only a E-5 and about 4mths ago made E-6 . So she icluded our combat pay and we made over the 39,000 for married filing with two or more children so we didnt get the eic credit just the child tax credit of 2,000

If I'm reading this right, they told you that you have to include ALL of his pay to figure EIC?

On the W-2 it should have his nontaxable combat pay listed with code Q in box 12. This is the amount that you use. Hostile fire pay, imminent danger pay, etc are not used for the calculation.

Armed Forces' Tax Guide
http://www.irs.gov/pub/irs-pdf/p3.pdf

Check page 17, second column.

I am also posting this here for information:

(Quote)
DAVE BARKER; I guess this is as good of place as any to put this. REX

IRS - More on Stimulus Package Tax Rebates

Stimulus Package Tax Rebates More Info

Recipients of VA disability compensation, pension and survivors benefits may qualify for economic stimulus payments this year from the federal government. Individuals who might not otherwise be required to file a 2007 tax return will need to file a return this year to receive the stimulus payment. Detailed information is available on the Internal Revenue Service website.

http://www.irs.gov/irs/article/0,,id=177937,00.html
(End Quote)

Grover

The latest information is posted here:

http://forums.military.com/eve/forums/a/tpc/f/110192933/m/9680039471001

Are individuals with VA DIC and SSDI who live outside the US eligible for the Economic Stimulus Package rebate?

I can not answer that. Do you file a US tax return and pay taxes? There is no information on the IRS site for overseas. If you do not pay taxes you might get $300 each. You have to file a tax return.

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

Greetings and special blessings to one and all.

For anyone who is interested you can go to this website and enter your SS#, your filing status and the number of exemptions, this is counting you and your spouse and children if any and maybe find out what date you should get your rebate on. Mine is coming May 6th by direct deposit.

https://sa1.www4.irs.gov/irfof/IRServlet?app=IRACTC

This will tell you how much you are getting and the date you can expect it.

May God richly bless and keep each of you.

In His Service,

Grover

P. S. Here is the payment schedule. To be in the above system you had to file before the first of March 08:

People who use direct deposit also will be among the first to receive the payments starting April 28. Direct deposits will be made daily and completed by the date listed below:
DIRECT DEPOSIT

Last two SSN digits: Payments will be transmitted no later than:
00 through 20 May 2
21 through 75 May 9
76 through 99 May 16




Paper checks will also go out based on Social Security number. For Social Security numbers ending in 00 through 09, the paper checks will be mailed starting May 9 and will continue through May 16. A similar process will be repeated in the following weeks.
PAPER CHECK

Last two SSN digits: Payments will be mailed no later than:
00 through 09 May 16
10 through 18 May 23
19 through 25 May 30
26 through 38 June 6
39 through 51 June 13
52 through 63 June 20
64 through 75 June 27
76 through 87 July 4
88 through 99 July 11