Senate Stimulus Bill- Retiree's

[Bikerdude]

It appears that under the Senate stimulus plan anyone who works and has “earned income” will receive a $500 tax credit for 2009 and 2010. Others without “earned income” will receive a one time $300 payment in 2009 according to the following proposal:


“Description of Proposal
The provision directs the Secretary of the Treasury to provide a onetime economic recovery payment of $300 to adults who were eligible for Social Security benefits, Railroad Retirement benefits, or veterans compensation or pension benefits;132 or individuals133 who were eligible for Supplement Security Income (SSI) benefits (excluding individuals who receive SSI while in a Medicaid institution). Only individuals who were eligible for one of the four programs for any of the three months prior to the month of enactment shall receive an economic recovery payment.”

Source: Senate stimulus Bill Feb, 2009

Retiree’s who have no “earned income” (only income from pension or assets) appear not be eligible for a tax credit, even if they pay taxes.

Looks to me that if your an early retiree, not working part time, or currently on or eligible for a Government program you will not receive a “stimulus” payment or tax break as the proposal stands now. The House Bill does not include anyone without earned income.

Comments?

 

[kumquat]

Looks to me that if your an early retiree, not working part time, or currently on or eligible for a Government program you will not receive a “stimulus” payment or tax break as the proposal stands now. The House Bill does not include anyone without earned income.

Comments?

Maybe they are afraid early retirees would do something stupid with this money, like save it.

Disclaimer: As a non-resident, non-citizen of the USA, this does not affect me.

 

[Tadpole]

Sounds to me like a raid in some government trust fund revenue maybe before the funds get credited with the new workforce payroll deductions. Love to be a fly on the wall in those "smoke filled" rooms.

 

[samclem]

So, if you are 64 years old and "eligible for SS" (albeit at a reduced amount) you'd get $300 even if you weren't receiving SS checks? And if you worked any portion of the time you'd get the additional $500 for a total of $800.

As the giveaways for the "working poor" continue, there may be additional reasons for some ERs to have a few bucks of earned income every year. This "refundable tax credit" welfare payment could easily result in a 2-hour/month min-wage job producing a very high hourly rate (once the givernment extras are thrown in). There's an angle here for someone who wants to set up a company specifically designed to hire retirees who just want to qualify for the government goodies. Flexible hours, no commitment, do a few hours of work sweeping floors or making cold calls, get a W-2 at the end of the year that allows you to get a shovelful of dollars from the bottomless federal money truck at the end of the year.

 

[Bikerdude]

So, if you are 64 years old and "eligible for SS" (albeit at a reduced amount) you'd get $300 even if you weren't receiving SS checks? And if you worked any portion of the time you'd get the additional $500 for a total of $800.

As the giveaways for the "working poor" continue, there may be additional reasons for some ERs to have a few bucks of earned income every year. This "refundable tax credit" welfare payment could easily result in a 2-hour/month min-wage job producing a very high hourly rate (once the government extras are thrown in). There's an angle here for someone who wants to set up a company specifically designed to hire retirees who just want to qualify for the government goodies. Flexible hours, no committment, do a few hours of work sweeping floors or making cold calls, get a W-2 at the end of the year that allows you to get a shovelful of dollars from the bottomless federal money truck at the end of the year.

I believe there is a part that mentions if you get a benefit from one it is deducted from the other. So no double dipping.

The "earned income credit" is a perfect example of a government program of workfare payments that is easy to game. The renting of child SS cards for those that worked enough to qualify for the EIC is big business in poor neighborhoods during tax time.