Are they trying to pull a fast one with the economic stimulus checks?

My elderly parents are on social security. From what they were told, they don't have to worry about income tax returns anymore. They even relocated to another country where their social security checks will go much farther. They were just so happy to receive their economic stimulus check of $610 last year. Now the IRS is going after them for $611 dollars they allegedly owe the IRS. [snip]is going on?

Mod Edit: Please Do Not Evade the Automatic Censors.


[edit on 1-24-2009 by worldwatcher]

reply to post by reject



Well, you know that part in your post that reads "someone told them they dont have to worry about income taxes"? Ya,,, that probably has something to do with it.

reply to post by spliff4020
they don't have any other income, the social security checks they get isn't taxable!


[edit on 24-1-2009 by reject]

They were lucky to have gotten it. My aunt gets disabilty and she was not able to get it. My cousin who is in a wheel chair and gets disability was not elligible for it nor were her kids. So the government screwed there family. I am actually shocked that your parents even got a check. That may be why they have to pay it back now in taxes, Because according to them this last check was just for the working folks only. No retirees. No Disabled, no poor folks. Go figure the poor folks didnt get crap. I also happen to know that alot of folks that were working still didnt get one, the IRS stated they owed in back taxes or alimony or whatever just so they didnt have to pay.

The SS isnt taxable but the stimulus check is.

I wouldnt be surprised if the government was actively seeking to stick it to the elderly and retired. They no longer pay into the system but only take from the system. Often they are alone or seen as burdensome by their children and their childrens family.

It's in the governments best interest to confiscate whatever property is held by our elders and if at all possible to shorten the amount of time they have to bleed the system.

It's a brave new world and the first in line to cut expense and pay debt will be the people who cant fight for themselves and have nobody to fight for them.

Parents will still fight for their children but as things get worse the parents will forsake the children to the whims of the government to save themselves.

P.S. Social Security isnt retirement. It never has been and was never intended to be. I hope they have some other money coming in or saved because retiring on SS is the stupidest thing anybody can do. I know an awful lot of people do it and an awful lot of people are stupid. SS is not retirement.

Only thing I can think of is that since they moved to another country, then they weren't entitled to the stimulus check. If social security is their only income then the stimulus check alone would not have triggered any taxation. Stimulus check was intended for the retired as well, contrary to what someone posted. Not owing taxes is not a reason to not file a return. Maybe they just want them to claim that income on their return even though there is no tax liability.

As for the poster who said people who survive on S.S. only are stupid, well you have a bunch of growing up to do. It is unfortunate that anyone is forced to live on that, but unfortunately there are a number of reasons why that is, that do not include stupidity. Some people got there because medical costs wiped out everything else, others couldn't save because it was all they could do to takeof their family. Others had saved for retirement or had promised benefits from an employer who was unable to make good on their promises. Other folks just had other Americns steal their life savings. Bottom line is that people face this situation because the system allows it.

A single tax payer receiving social security must file a return if they make over $25,000.00 from the SS checks.

A married couple that receives over $35,00.00 must file a tax return.

Paying tax on tax, meh.

Originally posted by pmbhuntress
They were lucky to have gotten it. My aunt gets disabilty and she was not able to get it. My cousin who is in a wheel chair and gets disability was not elligible for it nor were her kids. So the government screwed there family. I am actually shocked that your parents even got a check. That may be why they have to pay it back now in taxes, Because according to them this last check was just for the working folks only. No retirees. No Disabled, no poor folks. Go figure the poor folks didnt get crap. I also happen to know that alot of folks that were working still didnt get one, the IRS stated they owed in back taxes or alimony or whatever just so they didnt have to pay.

I know someone who has knee pain and got disability. Claims can't sit in a chair and work but can go out on the weekends all day shopping at garage sales.

Hey parasites need food too ! LOL

Most folks on disabilty are disabled because they have to fight to get it. It took my Cousin 3 years of court to get it. And figuring she has no use of her legs she is disabled. But still the stupid stimulus checks never went to folks on disability. Which if you ask me folks that are living on $600 a month really could have used it.

Strange i am a disabled veteren on a va pension and i got a stimulus check.

It was only $300 dollars but any thing helps.

By the way i still have the $300 dollars its my emergency fund if i need it.

VA pension is different then dissability. People getting VA pensions were getting the checks But if you were just getting Disabilty you didnt get one at all. Alot of folks on SS also did not get it.

reply to post by thisguyrighthere

The SS isnt taxable but the stimulus check is.

You are wrong on both counts.

First of all, the stimulus check is NOT taxable:
www.factcheck.org...

Is the economic stimulus payment taxable? More than 130 million taxpaying households will be eligible for economic stimulus payments in May 2008. Is this considered taxable income? A: No. Like most things involving the IRS, the 2008 stimulus payments generate a lot of questions, details, exceptions and paperwork. On the face of it, the idea is simple: If you file your 2007 taxes with at least $3,000 of taxable income, you will be eligible for a minimum payment of $300 (and a maximum of $600). Those with high incomes may not receive a payment, or may get a lower amount. But that doesn't eliminate the IRS' need for a multi-part Frequently Asked Questions list. The answer to this one, at least, is fairly clear. The payment is not included in your tax refund check, but it is not taxable income. You won't have to pay taxes on it in 2008, and it will not reduce your 2008 refund. The IRS does recommend keeping a copy of the official notice detailing the amount of your payment – for your records, of course. Would you expect anything else? –Jess Henig Update, March 12: Some readers have written to us to say some states would tax the stimulus payments; others have insisted that we were wrong and that these payments would be taxed on their 2008 federal tax returns. However, neither allegation is correct. First, the stimulus payment is not taxable at the state level. Verenda Smith at the Federation of Tax Administrators says the confusion stems from the fact that some states offer a deduction for federal taxes paid. If an individual’s federal tax payment goes down, so will the amount of the deduction, which means that person would be paying slightly more in state taxes. That’s not a tax on the stimulus payment, but it reduces the deduction that’s intended to defray federal tax expenses. Iowa and Alabama, which allow full deductions for federal taxes, and Missouri, which allows a partial one, are already trying to revise their laws so that the deduction isn’t affected by the stimulus payment. Second, the stimulus payment will not be considered taxable income on 2008 returns, and it won’t affect the amount a taxpayer owes. The only reason a taxpayer might have to disclose how much he or she received on the 2008 return is if the individual didn’t qualify for the full payment in 2007 and believes he or she did qualify in 2008. Eric Smith (no relation) at the IRS explains: “It’s a one-time credit, but you get two shots at it.” If a taxpayer isn’t eligible for a payment, or doesn’t qualify for the maximum payment, based on the 2007 return, that taxpayer will have a chance on the 2008 return to show that he or she is eligible for the remainder. (Those who receive the refund in 2007, but aren’t eligible in 2008, won’t need to pay it back.) To claim a full or partial payment for 2008, taxpayers will need to know how much they did or didn’t get for 2007.

Second, social security, or a portion of it, MAY be taxable, depending upon any other sources of income they may have, such as taxable interest, withdrawals from 401K's, sale of stock, other wages or retirement payments, etc. To determine whether any portion of social security is taxable, complete the Social Security Benefits Worksheet, which you will find this year on page 27 of the 1040 Forms and Instructions booklet, which you have already received in the mail, if you filed last year.

I would suggest that people that don't know the tax codes, refrain from giving advice, and I would strongly suggest that people check irs.gov on their own if they have any questions about taxes. The IRS will not accept as an excuse "I didn't think it was taxable, because someone on ATS told me so"!

I am disabled but do not have enough work credits because of being disabled to get it, what a catch 22!

When the stimulus checks came out, we owed taxes, so we did not get anything. We broke even. That was my husbands fault for not claiming the rite amount . But it sucked none the less.

Then this year they came out with the first time home buyers credit. We missed it by six weeks. They did not do it for the whole year. Why? Because it was not to help people in the first place, but to get money in the hands of the financial institutions , where as when people bought a house it was worked out where the mortgage funder got it, and the person buying the house paid it back. If it was for the people , they would have done it for the whole year as the downturn started before then.

I tell ya, though, we are about to loose our only good car, and that would have saved our butts. But no help for us. My husband supports our entire family on his income, and his hours were just cut in half.

I know so many people loosing their jobs. How many do you know?
I personally know about 5.

No but that explains why they got a bill for that amount since it states tax paying households. In other words if his mom and dad were not paying taxes then they were not suppose to have gotten a check in the first place.

Originally posted by amatrine
I am disabled but do not have enough work credits because of being disabled to get it, what a catch 22!

When the stimulus checks came out, we owed taxes, so we did not get anything. We broke even. That was my husbands fault for not claiming the rite amount . But it sucked none the less.

Then this year they came out with the first time home buyers credit. We missed it by six weeks. They did not do it for the whole year. Why? Because it was not to help people in the first place, but to get money in the hands of the financial institutions , where as when people bought a house it was worked out where the mortgage funder got it, and the person buying the house paid it back. If it was for the people , they would have done it for the whole year as the downturn started before then.

I tell ya, though, we are about to loose our only good car, and that would have saved our butts. But no help for us. My husband supports our entire family on his income, and his hours were just cut in half.

I know so many people loosing their jobs. How many do you know?
I personally know about 5.

I know of about 30 in this area that have lost jobs. Alot have even lost there homes already so its not a good thing. But yeah the government likes to mess with people all the time.

reply to post by reject


fyi: this matter been resolved. the taxes "owed" were just an oversight on their part due to a lack of coordination.