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February 22, 2008

Rebate confusion

It sounds so simple: Give taxpayers $300 to $1,200 to spend and jumpstart our economy.

Since Congress passed the economic stimulus package, there’s been a lot of misinformation about the tax rebates. The IRS tried to clarify the details today. But even the pros can get confused by the convoluted rules.

IRS Acting Commissioner Linda Stiff gamely answered reporters questions during a telephone conference. She made the point that Social Security disability benefits would not be count toward the needed income to receive a rebate.

Are you sure? she was asked. An IRS notice sent out earlier in the day stated the opposite. Stiff said she was sure.

Not long after the teleconference, the IRS issued a clarification: "Just to follow-up on some of the questions at today's press briefing particularly in reference to Social Security benefits. The material on IRS.gov is correct regarding Social Security and Veterans' benefits. Part of the press briefing discussion involved types of Social Security benefits. Social Security disability benefits do count toward the qualifying income requirement laid out in the Economic Stimulus law; Supplemental Security Income payments (SSI) do not count."

If the IRS has trouble interpreting the stimulus package, heaven help the rest of us.

Posted by Eileen Ambrose at 6:54 PM | | Comments (0)
Categories: Taxes
        

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