Tuesday, March 18, 2008

Reporting Income and the Economic Stimulus Rebate

I've received questions about a note that some of our clients received from Social Security regarding the tax rebates that are to begin arriving in May. There is concern that this money will affect disability benefits.

One of my first posts


referred to this and in it it there is a link to a fact sheet regarding the rebates.


Those who receive only SSI will not be eligible for the rebate. SSI income is not considered to be qualifying income.

The following is specifically not considered qualifying income for purposes of tax rebates:

  • Supplemental Security Income (SSI)
  • Dividend income
  • Interest income
  • Capital gains
  • Non-veterans and non-Social Security pension income (for example, income from an IRA)

See http://personal-tax-planning.suite101.com/article.cfm/qualifying_income_for_tax_rebates

Those who receive SSDI and SSI may be eligible for the rebate. If it is received, the beneficiary is obliged to inform Social Security and that should reduce the SSI portion of his/her monthly income accordingly.

Those who receive only SSDI will be eligible for the rebate with no impact to his/her benefit.

Please let me know if you have any more questions.

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