Kea Posted February 23, 2010 Report Share Posted February 23, 2010 Client started receiving military disability pension in September 2009, but it was retro-active to December 2008. I believe this counts as a government pension. But with a real start date of September 2009 & an effective start date of December 2008, would he qualify for the $250 and should he have received it? I wanted to check here before asking him. If it was included in the retro-pay, he may not know he got it. I'm tempted to fill out the form with a Yes on the pension and $250 in the amount. If it rejects then claim the $250 for him. Any suggestions? Thanks Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted February 23, 2010 Report Share Posted February 23, 2010 Client started receiving military disability pension in September 2009, but it was retro-active to December 2008. I believe this counts as a government pension. But with a real start date of September 2009 & an effective start date of December 2008, would he qualify for the $250 and should he have received it? I wanted to check here before asking him. If it was included in the retro-pay, he may not know he got it. I'm tempted to fill out the form with a Yes on the pension and $250 in the amount. If it rejects then claim the $250 for him. Any suggestions? Thanks Is this person in the social security system? taxbilly Quote Link to comment Share on other sites More sharing options...
Kea Posted February 23, 2010 Author Report Share Posted February 23, 2010 No, he didn't mention an SS disability pension, but I can verify that with him. He's in his 20s and has a war injury. I know it's a military disability pension - so I'm thinking it's a VA pension. But I'm not real sure about that. Thanks Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted February 23, 2010 Report Share Posted February 23, 2010 Is it a taxable pension and if it is then maybe he received the $250 from the VA. I don't know their cutoff date or whether it was similar to Social Security. taxbilly Quote Link to comment Share on other sites More sharing options...
Kea Posted February 23, 2010 Author Report Share Posted February 23, 2010 I haven't seen anything about cut-off dates either, which is why I posted. No, it's not taxable. Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted February 23, 2010 Report Share Posted February 23, 2010 If the taxpayer paid into social security while he was in the military, then I don't think this pension has anything to do with the stimulus payment. He would only be entitled to the Making Work Pay credit if he or his spouse had earned income. The $250 only comes into play if they are drawing social security or a government pension that totally replaces social security because they did not pay into social security. At least, that is how I understand it. If someone with more knowledge wants to speak up, this would be a good time. Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted February 23, 2010 Report Share Posted February 23, 2010 If the taxpayer paid into social security while he was in the military, then I don't think this pension has anything to do with the stimulus payment. He would only be entitled to the Making Work Pay credit if he or his spouse had earned income. The $250 only comes into play if they are drawing social security or a government pension that totally replaces social security because they did not pay into social security. At least, that is how I understand it. If someone with more knowledge wants to speak up, this would be a good time. You are correct, Gail. taxbilly Quote Link to comment Share on other sites More sharing options...
Kea Posted February 23, 2010 Author Report Share Posted February 23, 2010 Thanks so much. I'll check "No" on the govt pension and $0 received -- or just delete Sch M altogether. No earned income for the year due to the disability. Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted February 24, 2010 Report Share Posted February 24, 2010 Looks like that's the way to go. taxbilly Quote Link to comment Share on other sites More sharing options...
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