What do retirees on Social Security get in the way of a refund?

[CTyankee]

I notice in today's paper that the tax refund for "workers" in my spouse and my combined income level is $1200, but he is still employeed and I am retired. My income is derived from Social Security and income from savings that are invested, throwing off a modest income. I pay estimated taxes now.

I'm not complaining or whining "what about me?" Not when there are so many people barely getting by while working 2 jobs, or the retirees whose SS check doesn't cover their heating bills and food each month. Just wondering how this thing works for those of us no longer in the workforce...

[yy4me]

1. Good question, we're in the same general situation. I would

be curious as to the rebate for us. We still spend, we still work. If we are denied, it will prove to be another way of punishing those of us who worked all our lives and paid onto the system. There was some mention of seniors and very low income people not being included when this rebate was first discussed. I do not think this rebate is the solution to our problems but I could sure use the money. It cost us, as well as everyone else, about $1000.00 to fill our 300.00 gallon tank with heating oil. Several thousand dollars so far and the winter is still upon us.

[mac2]

2. The retired are a huge voting block which they choose to

ignore. They mostly want us to go away.

The fall of the dollars and the false cost of living index is expecially hard on this sector of our population since their money is mostly fixed. The housing and health care costs out of control. Where is the lobbying by the retired organizations like the AARP, etc.?

[Robbien]

3. It applies only to W-2 workers I believe

so yes, as 1099 income earners retired people are excluded.

[CTyankee]

5. I actually worked part time for 3 months in 2007 before retiring.

It was probably under $3,000 total. Would that count? Do they take into account total income, not just W2 income?

[Robbien]

8. From what I understand

if that $3,000 was reported to you on a W-2 then you are included. If that $3,000 was reported to you on a 1099 you aren't.

The basis is W-2 income.

[yy4me]

7. If this is the case, it stinks. We spend our Social Security checks

on the same things that W-2 earners do. Are we less that equal citizens? We are suffering equally in this depressed economy yet we are perceived to be less than eligible? I hope this is not the case. There will be quite a few nasty phone calls to Washington. If the government is going to bail themselves out(they think), all citizens with income up to the max allowed, regardless of its source, should be eligible. It is grossly unfair to say thar Social Security recipients are not eligible. Whose bright idea was this exclusion part, anyway?

[Robbien]

10. There is some talk that there is a fight between Dems and GOPers

That Dems want 1099Rs (retirement/SS) included and GOPers do not. Dems usually do not win these fights so I wouldn't hold my breath.

[Coyote_Bandit]

9. So.....

Long term unemployed folks who pay taxes on earnings from their dwindling savings are also excluded? Also a lot of self-emplyed folks would be excluded since many do not receive 1099s or w-2s. The issue is not limited to retired and disabled folks with taxable income.




Undoubtedly there will be a of of pissed off folks if all forms of taxable income are not considered in determining the rebate. Taxable income is taxable income regardless of its source. To suggest otherwise is to suggest that some taxpayers are less equal than others simply due to the source of their taxable earnings. Never mind the fact that some taxpayers would like to have income from w-2 or 1099 earnings but are prohibited by age, infirmity or maketplace rejection of their skill. If the rebate is limited to only W-2 and 1099 earners then I personally will not vote for any incumbent for any position irrespective of their party affiliation. I will not tolerate that kind of inequity. If you are correct, then this tax rebate stimulus is a fucked up idea in terms of both its long term economic implications and in terms of its political implicaitons.

[Robbien]

11. Yup

Notice that whenever they talk about this rebate, they talk in terms of wage earners. There are so many people excluded from the category of wage earners such as retired, self-employed and the ever increasing category of contractors.

But they are very careful not to say it.

[Coyote_Bandit]

12. Fuck 'em all

I guess I'm voting for Edwards....

[TheCowsCameHome]

4. We still pay taxes, don't we?

There's no free ride just because you're retired.

[radfringe]

6. another donut hole... n/t

[yellowcanine]

13. I could be wrong but I believe the $1200 is for couples with no dependent children so it does

include you. As for couples where both are retired - I believe the refund is based on any taxable income, most people are paying taxes on retirement income other than SS, so they should get a refund also.

[yellowcanine]

15. OK I see some are saying it is W-2 income only. Need more info.

[yellowcanine]

Ok the quote is " People who pay income taxes will get up to $600. Couples can receive up to $1,200.

People with children will get an additional $300 per child."

http://www.myeyewitnessnews.com/news/local/story.aspx?content_id=9b0da22c-3c38-41ed-aed9-5b459e53cda1

Says nothing about whether the income is on a W-2 or 1099. So where is this info coming from? Does anyone have a link? It is also possible that the info being put out about this is deliberately vague to forestall any firestorms by groups who might get left out.

[Robbien]

22. It comes from the language

"workers" and "wage earners" and "working poor".

And there are several articles on the exclusion of Seniors such as this one
http://www.medicalnewstoday.com/articles/95089.php
Social Security Could Deliver Stimulus Within 6 Weeks To Millions Of Seniors, Yet Low Income Retirees Ignored In Stimulus Plan - USA


But nothing is firm yet, so perhaps taxpaying Seniors could get included in the final version.

[Echo In Light]

14. Like a used up battery, put out to pasture. Tis the republican way

[Historic NY]

16. what about disabilty retirement?

I still get 1099's on interest and still pay high taxes that I can't deduct cause my retirement is tax free. Its not much but I still have to pay taxes on the income that does comes in even if its is not a salaried income.

[CTyankee]

17. That's what I can't figure out. If you are still paying taxes and your income

meets the level requirements, why shouldn't you get relief? Especially if you are disabled and can't work. I was temporarily disabled in 07 and had to give up my part time job. I am fine now and could, if I had to, go back to work doing something. But any one of us could be disabled in a heartbeat. It isn't fair that you are being excluded!

[FreeStateDemocrat]

18. Retirees that have an income tax burden that is not W2'd will not have any FIT rebated?

[suninvited]

19. What about single persons

It looks like the plan is for married couples. I am single and work three jobs, one full time and two part time with an income of about $35,000. It looks like I am excluded, also, or I am reading it wrong.

[Robbien]

20. You probably qualify

Singles who earn between $6,000 and $75,000 get $600, if that income is reported to you on W-2s.

[suninvited]

21. Thanks

I was reading about it, but the article I found only mentioned couples, I didnt find any information for single people.

[Coyote_Bandit]

23. OK I'm calling bullshit on all this W-2 1099 stuff

http://money.cnn.com/2008/01/24/news/economy/stimulus_package/?postversion=2008012421

http://www.bloomberg.com/apps/news?pid=20601087&sid=aDzIggDfdllY&refer=home

http://www.foxbusiness.com/markets/industries/media/article/stimulus-package-means-family-2100-june_450915_15.html




These and other articles talk in terms of tax rebates based on either adjusted gross income or earnings. Earnings is a broad term that includes all forms of taxable income. Adjusted gross income likewise includes all forms of taxable income. That would be consistent with previous tax rebates.



I would, however, be interested to see a link to a news source that states that the rebate is limited to earnings reported via W-2s or 1099s. I looked and did not find one.

[CTyankee]

24. The news article I was referring to in the OP said "workers" and my spouse

who is still working said that while he would qualify I probably wouldn't. I couldn't find any particulars in the story. Later when I read the NY Times it also referred to just "income." I called an accountant friend. He said I would qualify. So he's the accountant, not me...

[Coyote_Bandit]

26. Seems your accountant also confirmed the rebate is for

all forms of income - not just that reported on W2s and 1099s....

[CTyankee]

27. Yes, I guess so. We're nowhere near having our taxes done but according to the

broad outlines in today's paper we qualify in terms of limit requirements for a childless couple of two. And we paid enough taxes as well. BUT, who knows how this will pan out? The Senate has problems with theplan and has some plans of its own, so we shall see...

[cgrindley]

25. No offense, but you're not on their radar...

I think that this stimulus package is being designed so that people like me go out to Best Buy and drop a couple of grand on useless shit. They want the economy to be jump started with a lot of wasteful spending.

[CTyankee]

28. Well, I thought about that. I'd like to put the "windfall" into an interest bearing

household account that we set up for unexpected house expenses, like when the hot water heater dies. All of a sudden, our old bones get a big shock and we worry excessively about paying for it. This way, when the washer goes (probably the next thing to die in our house)we'll be at Best Buy right along with you, checking out the specials on washers...