We have previously discussed the Economic Stimulus Plan (“the Plan” ) tax benefits for workers, called the Making Work Pay Credit (“MWPC”). This income tax credit is equal to 6.2% of a person’s earned income up to a maximum of $400 per worker. The Plan though, also provides tax benefits for certain individuals with no earned income. Recipients of certain federal benefits will receive a cash payment of $250. Government retirees will be eligible for a $250 tax credit in 2009.
The Economic Recovery Payment is a one time cash payment of $250 to certified eligible recipients of “qualifying federal programs”. “Qualifying federal programs” are generally Social Security, Railroad Retirement, Veterans and Supplemental Security Income (SSI). An individual must have been eligible to receive benefits under a “qualifying program” during any of the months of November,2008, December,2008 or January of 2009 The individual must also have an address of record in one of the 50 states, the District of Columbia, Puerto Rico, Guam, the U.S. Virgin Islands, American Samoa or the Northern Mariana Islands.
An otherwise eligible individual will not receive an Economic Recovery Payment if such benefits are suspended in the case of Social Security and Railroad Retirement, because the recipient is incarcerated, a fugitive, a probation or parole violator or made false or misleading statements with respect to the right to receive these benefits. An individual whose Veteran’s benefits are suspended or reduced because he or she is incarcerated or a fugitive felon will not receive an Economic Recovery payment. An individual receiving SSI while in a Medicaid institution is also ineligible. Finally, an otherwise eligible recipient under any “qualifying program” who dies before certification is not eligible.
The appropriate Commissioner, Secretary or Board of a “qualifying program” must certify the individual as eligible for an Economic Recovery Payment. The payment is to be made as soon as 120 days after the date of enactment (February 17, 2009) but no later than December 31, 2010. A working individual also eligible for the “MWPC” will have that credit reduced by the amount of any Economic Recovery Payment.
Certain government retirees, not eligible for an Economic Recovery Payment may be entitled to a $250 refundable tax credit in 2009 under the Stimulus Plan Individuals must receive a pension or annuity as a result of work performed for the United States or any state or instrumentality thereof. Such individual then would not be covered by Social Security. The individual must also have a valid social security number, which does not include a taxpayer identification number issued by IRS to those not eligible for a social security number.
The Economic Recovery Payment is a one time cash payment of $250 to certified eligible recipients of “qualifying federal programs”. “Qualifying federal programs” are generally Social Security, Railroad Retirement, Veterans and Supplemental Security Income (SSI). An individual must have been eligible to receive benefits under a “qualifying program” during any of the months of November,2008, December,2008 or January of 2009 The individual must also have an address of record in one of the 50 states, the District of Columbia, Puerto Rico, Guam, the U.S. Virgin Islands, American Samoa or the Northern Mariana Islands.
An otherwise eligible individual will not receive an Economic Recovery Payment if such benefits are suspended in the case of Social Security and Railroad Retirement, because the recipient is incarcerated, a fugitive, a probation or parole violator or made false or misleading statements with respect to the right to receive these benefits. An individual whose Veteran’s benefits are suspended or reduced because he or she is incarcerated or a fugitive felon will not receive an Economic Recovery payment. An individual receiving SSI while in a Medicaid institution is also ineligible. Finally, an otherwise eligible recipient under any “qualifying program” who dies before certification is not eligible.
The appropriate Commissioner, Secretary or Board of a “qualifying program” must certify the individual as eligible for an Economic Recovery Payment. The payment is to be made as soon as 120 days after the date of enactment (February 17, 2009) but no later than December 31, 2010. A working individual also eligible for the “MWPC” will have that credit reduced by the amount of any Economic Recovery Payment.
Certain government retirees, not eligible for an Economic Recovery Payment may be entitled to a $250 refundable tax credit in 2009 under the Stimulus Plan Individuals must receive a pension or annuity as a result of work performed for the United States or any state or instrumentality thereof. Such individual then would not be covered by Social Security. The individual must also have a valid social security number, which does not include a taxpayer identification number issued by IRS to those not eligible for a social security number.
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