More answers to your economic stimulus questions
Some of your questions about the economic stimulus package have been forwarded to Mark Luscombe, principal federal tax analyst with CCH, the group that publishes tax books used by professionals. Here are his answers:
Q. Was laid off in Dec. & must decide on COBRA this month. How would the stimulus subsidy affect me? Would I have to pay 2-3 months of full cost (back to 1/1/09)? Any info or helpful websites appreciated.
A. The COBRA premium subsidy begins in the period of coverage beginning after the date of enactment (February 17). Therefore, if the period of coverage is monthly, it would begin in March, 2009. A terminated employee is entitled to the premium subsidy unless they affirmatively elect out. A terminated employee might elect out if their income was too high to be eligible for the subsidy and did not want to be subject to a recapture tax.
Q. Hi, my son and his wife owned a condo together which they sold in 2007 as part of a divorce. My son, as an individual, bought a house where he is stationed in the army in his name only. Do you think he could qualify as a first-time homebuyer since he bought this house by himself rather than in joint name? This is just a shot ... he could use the credit.
A. No, he would have had an ownership interest in a residence in the last three years.
Q. How does the Make Work Pay stimulus work for the unemployed? Will we still get the full benefit off at tax time next year?
A. An individual with no earned income would not be entitled to the Making Work Pay Credit.
Q. I closed escrow on my home Jan 16, 2009. I am a first-time homebuyer. I received the $7,500 tax credit that has to be paid back but I am eligible for the 8000 tax credit that doesn't have to be paid back. Do I file an amended return so that I get the extra $500 and so that I don't have to pay it back?
A. It sounds like a 2009 purchase was claimed as a credit on the 2008 return. If you claim the credit on the 2008 return, it appears the way the law is written that you can only claim a $7,500 credit. If you amended your 2008 return to drop the credit, and claimed the credit on your 2009 return, you could claim the $8,000 credit.
Q. My boyfriend owns the home that we have both lived in for the past 5 years. I have no ownership in the home and have never bought a home. We just purchased a home together with me as first-time buyer. I am going to live in the home. He makes too much to qualify for the credit, but I do not. Will I be able to get the whole $8,000 or only half?
A. Since it appears that they are not married, the boyfriend’s ownership of the home should not prevent her from qualifying for the credit. The IRS says that the two can allocate the credit between themselves in any reasonable manner as long as the total does not exceed $8,000. It would appear, therefore, since the boyfriend does not qualify for the credit, that the writer could be allocated the entire $8,000 credit, assuming that the IRS considers that a reasonable manner of allocation.
Comments
I am on disability will i get the 250.00? James
If you are getting SSI, yes. - eileen
Posted by: James Scott | February 20, 2009 10:42 AM
i'm on SSDI (social security disability income), do i still qualify for the $250. stimulus payment?
yes. - eileen
Posted by: jen | February 20, 2009 11:54 AM
My husband is on Social Security Disability and me and the children get a check also. Do we qualify or just him? Thanks
Good question. I wondered that myself. I'll forward your question to a tax pro for an answer. Check back next week. - eileen
Posted by: Sherry Lee | February 20, 2009 2:55 PM
Re: $250 if on Social Security Disablility: If back Child Support is owed, will this payment be claimed by Child Support as the 2008 stimulus payment was?
I'll ask about that, ema
Posted by: al | February 20, 2009 4:21 PM
On the official SSA website FAQ section it does state it will intercept the $250 for federal debt or child support.
Thanks. - ema
Posted by: Susan | February 26, 2009 11:07 PM
DO I HAVE TO RECIEVE A LETTER BEFORE I KNOW IF I GET THE 2009 SSDI STIMULUS OF $250.00.
I don't believe so. I believe Social Security is just sending it. If anyone else has a definitive answer, let us know. - eileen
Posted by: Beverly Thomas | May 20, 2009 12:24 PM