I would like to know if there was anything in this Stimulus Program about the retired military health program, Tricare for Life. This would really have a great impact on all Military Retirees at 65 years.

how much will each person get back?

Depends on their tax situation. But if you mean the Making Work Pay credit, it's worth up to $400 a year for this year and next. Check the blog tomorrow morning. I'm posting questions to tax professionals, and one of them explains the Making Work Pay credit. - eileen

i am on social security disability, where will i receive the one-time payment from as part of the economic stimulus package? do i need to fill out anything (like a tax form for the last stimulus payment)?

As the blog posting today mentioned, you don't have to do anything. Treasury will use informatioin from SSI to mail your check. - eileen

y husband and I already filed our 2008 taxes and received a refund. When can we expect to see the $800?

You apparently are referring to the Making Work Pay credit. That will appear in your paychecks over the course of this year and next. Some estimate it might start appearing in July- eileen

We bought our home February 6th 2009 but it is the second time we have purchased a home.

Does the Stimulus Bill only include first time home buyers for the tax credit?

Yes - eileen

We bought our home February 6th 2009 but it is the second time we have purchased a home.

Does the Stimulus Bill only include first time home buyers for the tax credit?

I should have added, that you can't have owned a house in the previous three years to be considered a first-time homebuyer - ema

We obtained a constructin loan in November of 2008. The modification from construction to a permanent loan will be April 2009. Do we qualify for the first time homebuyer credit? (We have not owned a home in 3 years)
Thank you.

I'll forward this to an accountant. Check the blog for the answer. - ema

Is the $1500 energy-related tax credit available for each of years 2009 and 2010, or is it a maximum credit for 2009 and 2010 combined?

Combined - eileen

With the 7500 credit, a buyer could make a purchase in 2009 and claim it on their 2008 taxes. Is the same true with the new $8000 credit?

That's what I'm told. - ema

I am 61. Retired. NO earned income. Too young for SS. Have a private pension which I pay tax on. What would my rebate be?

The answer has been posted. - eileen

From what I can gather, we're not getting a "stimulus check" for 400 or 800 depending, but instead approximately 13 bucks a week off the taxes taken out of our pay, roughly adding up to 400 or 800 over the next year or so. Is that correct or should we expect some type of check like the one received last year?

Your employer is expected to change your withholding once it gets new tax tables from the government. There won't be a lump sum but increased amounts in your paycheck this year and next.
The credit is worth up to $400 per worker. The reason you hear $13 or $15 per paycheck is that it's rough math of 26 paychecks divided into $400. You will get up to $400 this year and next. So because were already months into the year, you could actually see a little more than the $13 or $15 this year. - eileen

I'm on the cobra plan since I got laid off, how do I go about getting the credit from the federal goverment to pay part of this since this has been approved by president Obama. Thank you for your help. ERIKA

Your best bet is to check with your employer. The government will be giving your employer a credit to cover some of your premiums. - eileen

It seems to me that the tax break, which is determined through new withholding tables, may create a tax problem for some people because withholding would be based on each person's W4 and not their combined income -- or other income the couple may have. So, when taxes are filed for 2009, not enough may have been withheld creating a situation where taxes may be owed.

so you mean that we are getting a credit thise year for 2009 if i allrady filed my taxes will i get it direct deposit and when

Sorry, I'm not sure what credit you are talking about. Can you elaborate? - eileen

When I filed my 2008 taxes, we had to include the money from last years stimulus check, which made our tax return $900.00 less than what it would have been. Can we expect the same from this "tax break" next year?

Check out the IRS Web site at www.irs.gov about the recovery rebate credit.
The agency says people have mistakenly been putting the amount they received from last year's rebate on their tax return instead of any shortfall that might still be due them. - eileen

Also, as my colleague Liz pointed out, check this posting we had earlier on errors involving the recovery rebate credit at XXXXX">http://weblogs.baltimoresun.com/business/consuminginterests/blog/2009/02/tax_rebate_and_economic_stimul.html”>XXXXX

IF I HAVE A PELLETT STOVE INSERT INSTALLED CAN I USE IT FOR NEXT YEARS TAX WRITE OFF?THANKS

Not sure. I'll run that one by a tax pro. Check the blog. I'll post answers when I get them - eileen

q: $1500 energy credit in stimulus package. does that mean $1500 for 2009 and another $1500 for 2010?

I believe it's $1,500 total, but we're checking on that. check back. I'm posting answers as I get them - eileen

Are there any tax credits for homebuyers, other than 1st time buyers or the energy improvement incentives?

We install geothermal equipment and I'm receiving information that the $2000 cap on geothermal installation has been removed. Does this mean that 30% of the entire job is now available for a tax credit? Does it included new and retro fit installations? Any info would be appreciated! Thank you.

Good question. I'll post it to the pros and see what they say. Check the blog for the answer. - eileen

I receive SSI and I didnt receive a Stimulus check last year will I get one this year? I was told last year it was only for people that work, I have been determined disabled so why is that a problem?

If you receive SSI, you should receive a one-time stimulus payment of $250. This is different than last year's rebate. - eileen

Hi Eileen! Thanks for your active and informative blog here!

Will I qualify for a first-time homebuyer tax credit if I was divorced over three years ago, but only received the money from my house via a buy-out settlement two years ago? Also, I was excluded from any access or use of that property for over three years, and I was not on the loan, which originated before the marriage. Your efforts are appreciated & Best Regards!

I'll forward your question. Check the blog for the answer. ema

will people on ss and ssi disability that bought
a mobile home 12 years ago and
still owe 14,600 on there home and is first time buyers will they get
250.00 stimulus automaticaly

From what I gather, you've owned a mobile home for 12 years so you won't qualify for the first-time homebuyer. But the $250 one-time credit will be sent automatically to SSI and Social Security beneficiaries. - eileen

If I bought a house last Frbruary 13 and already filed my 2008 income tax, can i still avail of the 8,000 tax credit? If yes, how will i apply? Will I just apply when i will file my 2009 tax or can i avail this year

If you purchased a house in Feb. 2008, you are not eligible for the credit. If you bought in in 2009, you can take the credit on your 2008 return, but you will have to file an amended return since you already filed. Or, you can just wait until next year. ema

We file married joint return. We earn $27,000 annually. Our tax liability is about $700 after exemptions and deductions. We contribute $1600 annually for our 403 account. So we can get the credit for retirement contribution of $1600x0.5=$800. That completely erases our tax liability and we can get all our federal tax withheld back. Under the previous Bush stimulus plan, we get $600 check on top of all our tax withheld money back. Now, under the new Obama stimulus plan, less money will be withheld from each pay check. But for our situation, are we losing out on the benefit? We don't need to pay tax anyway with the retirement contribution credit. If we don't get an extra check, we practically get nothing from this new plan. Am I correct in my observation?

Sorry, I don't understand what retirement contribution credit you are speaking of that equals $800, so I can't address your question. - eileen

R we going to recieve a economic stimulus checks this or not? I'm confused. if we r when, were and how?

Check out the earlier Q&As. You'll see that workers will get a bump up in their paychecks this year and next for a working credit; retirees and certain others on government benefits will get a one-time payment of $250. - eileen

The retirement savings contributions credit is on Line 51 of 1040 form. It is a tax credit for them contributing funds for their IRA or 401. I have to attach form 8880. Anyhow, I can claim this credit each year to get all my tax withholding back. So, as far as I can understand, in my situation, I will not get an extra penny with the Obama stimulus plan.

It appears you would be eligible for the Making Work Pay credit. This will decrease the amount of tax withholding in your paycheck so you should get more in your paycheck each week this year and next. The money, according to reports over the weekend, should start appearing in April. - eileen

i asked about ssdi (social security disability income) recipients and the one-time economic stimulus payments, and you answered in the comments section. i'm reading that supplemental security income recipients qualify for those one-time payments and that's what you said in your response. i'm not on ssi, i'm on ssdi -- it's social security, but not the same. do i still qualify?

Here is the language of the law: ECONOMIC RECOVERY PAYMENT TO RECIPIENTS OF SOCIAL SECURITY, SUPPLEMENTAL SECURITY INCOME, RAILROAD RETIREMENT BENEFITS, AND VETERANS DISABILITY COMPENSATION OR PENSION BENEFITS.
I'll ask some tax pros about SSDI, so check the blog later for the answer. ema

Obama needs to do a commercial in front of plexiglass panel and use crayons to explain this very simple set of rebates/credits that to some of us that are disabled, on so many meds from the VA or just plain elderly are very confused. Mind my sardonic wit but I am "lucky" I have VA benefits, as I was trying to read and understand all the Medicare partsA-D and I am an intelligent man, so it is same with information dissemation--KeepItSimpleStupid
Peace and may God guide this President

We bought a house on 1/23/09. We were wondering how to apply for our $8000 tax credit of first-time homebuyers as well as the $1500 for the new air conditioner we just bought. DO we just put these credits on our 2009 tax form; is that how one applies? Also, I see that people are claiming these credits on their 2008 taxes even if they bought the house in 2009. Is this possible? We are waiting until 2009 because we were not even planning to do an itemized tax form until 2009 -- our first year as homebuyers. I am presuming this must be an itemized tax form to get the credit. Final question: Neither the 8,000 or the 1,500 credits must be paid back, right?

Yes, it's possible to claim the credit on 2008 even if you bought the house in early 2009. The energy credit and first-time homebuyer credits don't have to be repaid. I'm not sure where the housing credit appears on the 2008 return, but if you are waiting until 2009 to claim the credit, you fortunately won't have to worry about that. Also, when you file your return next year, you should see the credits on the form. - eileen

I am a retiree so I see from your answers that I will not be eligible for the "Making work pay" but I am going to be working for at least 5 to 10 weeks. Will the earned income I make for that work make me eligible for the benefit and if so please explaine.

Are you collecting Social Security? You could be eligible for the one-time payment of $250. -ema

Hi Eileen,

I found the answer to my question on the IRS Form 5405, used to take the First Time Homebuyer Credit. It made clear that since my home in the divorce had not been my "main" home in the past three years, that I qualify, even though I was not bought-out on paper over three years ago. This should also apply to anyone who is not living in any property they may be renting out.

Sometimes, what I call "IRS speak" is confusing, but this was clear. However, the exceptions to the repayment or non-repayment part of the credit sounds confusing. Are the exceptions related to a sale before three years, or are these exceptions to any sale, at any time? Yes, IRS Speak in true form! ;-)

Please let me know if you are able to clarify the repayment exceptions for me. And, thanks so much for helping everyone!

Best Regards, Grace

P.S. I also just discovered that I can get the $600 stimulus credit on my taxes this year. Because of my own situation, I didn't owe taxes on last year's tax return, therefore, I didn't get the stimulus check. I wasn't counting on this, but naturally, glad to also receive it now. It applies to anyone who didn't recieve the full amount, and whose taxes are at least $300 for year 2008. Please let Liz know that I am still not buying a big screen t.v! And, I owe her a post about all of my frugal living tips.

The following is from the form regarding definition of first time homebuyer:

c You (and your spouse if married) did not own any other main home during the 3-year period ending on the date of purchase.

If you constructed your main home, you are treated as having purchased it on the date you first occupied it.

Main home. Your main home is the one you live in most of the time. It can be a house, houseboat, housetrailer, cooperative apartment, condominium, or other type of
residence.

Grace, thanks for your note. I hope others read it because it clears up questions about whether someone can qualify as a first-time homebuyer if a spouse previously owned a house.
As far as repayment, you will have to repay the credit if you sell the house within three years. You will repay via your tax return. As last year's tax credit held, I believe in this case, too, you would have years to repay it. - ema

i.am a disabiliy vet
i get a disability pension for uncle sam
and for thr air froce
will i get a stimuls check

It sounds like you would be eligible for the $250 one-time payment, which will automatically be sent to you. - eileen

i am on SSDI and my wife has never work. Will she get a check as well as I. We are married.

As far as I know, only the person getting Social Security related benefits will be eligible. - ema

I read above that we will receive extra money each paycheck. What I want to know is how this works at the end of the year when you have to file your taxes? I read above that the tax tables will change for employers so will the tax tables in the 1040 tax booklets also be changed? My husband was told at work he would have to change his W-4 if he did not want less withheld. Don't understand why he would have to do that if the employers tax tables are being changed.
Thx for any help you can give.

Hi, I'm writing about this for tomorrow's paper. There is a concern that if you have multiple jobs or are a married couple where both work, that you can have too much taken out and need to adjust your withholding. eileen

I have heard that the stimulus tax break in a persons paycheck might amount to an increase in my check of about 40 to 50 dollars. My check is only seeing about a 10 to 15 dollar increase. How is the amount determined and why is mine lower than the national average?

The maximum credit is $400 for an individual. Divide that by 26 - if you get paid every other week - and that runs about $15 a pay period. So yours is in line with what you are supposed to get. If people were getting $40 a paycheck, that would only be for 10 weeks. The credit is supposed to be spread out for longer than that. eileen

i receive both Social Security Disability and SSI, which one will i receive the $250 one time payment for.

Not sure, but it will only be one, one-time payment of $250. ema

WE ARE BUYING A HOME SO WE CAN STMULATE THE ECONOMY THIS YEAR 3-23-09 CAN WE GET THE ENERGY TAX BREAK AS WELL AND IF SO WHAT WE NEED TO DO TO GET THE TAX BREAK.

Check the blog under taxes. Others have asked about energy credits. Or, you might just want to check the IRS site at www.irs.gov under energy tax credits. They are a bit technical, so it depends on what sort of energy improvements you make to the house. - ema.

i WOULD LIKE TO KNOW I AM ON SSI
I DO NOT HAVE A HOME i LIVE IN AN APARTMENT MY INCOME IS ONLY $482.00 WILL THIS EFFECT US IF THERE IS NO INCREASE

I'm sorry, I'm not clear on your question. What will affect you? -ema

The $8000; first time homeowner tax credit. Is this for a primary resident and if so; that mean you must live there for 6 months; and then do you have to file an income tax return from that state where that house is located.

It has to be your primary residence, which means you would be filing income taxes in that state since that's where you live most of the time. - eileen

If both partners in the marriage are recv. soc.sec. will there be 2 checks. Also, my husband recv. military retiremnt benefits. How can we find out if he will recv a stimulus check?

If both spouses are retirees receiving Social Security, each should get the $250 one-time check. The checks, I believe, are supposed to be going out in May. - eileen

The federal stimulis package has decreased our tax withholding. I have seen a $30 increase in my paycheck. My accountant told me that I should have an additional $30 taken out of my paycheck to offset the decrease in the tax withholding. He said the appoximate $600 less taken out of my check in 2009 will be calculated into my refund/possible amount due when I file my 2009 taxes. Is this true?

The IRS has issued an advisory to two-income couples and singles with multiple jobs that they could have their withholding reduced too much, and might want to adjust their W-4s. For instance, if you're single and have two jobs, each employer is reducing your withholding so you can get the credit. And if you get too much, it would be recouped next year when you file your taxes.

The IRS at www.irs.gov has info on this. There's a worksheet in Publication I-can't-remember-the-number-but-it-might-be- 919. The IRS is also working on a calculator that you will be able to figure online whether you need to adjust your withholding or not for the Making Work Pay Credit. - eileen

I heard that ssi recevers will have to repay the $250 on their 2009 taxes. Is this true?

No. - ema