Stimulus package, What gives?

[UncleHoney]

I got my monthly pension deposit statement (they call it an advise of credit) in the mail today and there was a little surprise. A reduction in fed income tax withholding.

I didn't think anything but earned income was going to be subject to the tax reduction in the new stimulus package. Doesn't make any sense to me.

Everything I read only mentions the "Make Work Pay" tax reduction for wages. Of course you can't believe everything you read.

Anyone else see any reductions in taxes withheld on pensions?

 

[Bikerdude]

I don't have taxes withheld so I would not know. I don't know how I would claim it at tax time next year. As you said, its not earned income.

 

[UncleHoney]

I found something on the IRS site, but it's as usual, clear as mud. It talks about working individuals and taxpayers in the same sentence. If married taxpayers get double credit even if only one had wage income it stands to reason that maybe maybe taxpayers with no wage income would get the credit too.

Maybe there isn't any difference between wages and earned income as far as the tax credit is concerned.


The Making Work Pay Tax Credit

 

[Bikerdude]

Maybe there isn't any difference between wages and earned income as far as the tax credit is concerned.


The Making Work Pay Tax Credit

Wages are what earned income is.

 

[OAG]

I have no EARNED income and can control my withholding for both Federal and State taxes at the Military "my pay" site. So I have not seen any changes in withholding. I do expect two $250 deposits in May (SS Site says late May, but VP Biden said early May - think I will trust the SS Site) for the "seasoned people" rebate.

 

[Dennis]

My SS went Up, then went down... I don't ask why till end of the yr..
But my VA Health Care Cost went up! They cost me Twice as Much vs Getting Generics thru Wal mart, but can't get a sep. Script to get them at Wal Mart! Another Con Game.. Maybe they need that extra $ to pay for those $200 hammers and $500 Toilet seats! LOL