Big Scam About The Irs And Economic Stimulus Checks

[Chester Copperpot]

I was just told this the other day by a retired IRS agent.

Everybody knows about the economic stimulus checks the govt is handing out this year. Fine good, everybody is happy. However there is a segment of people who receive non-taxable income from things such as disability from the VA, or railroad retirement income, as well as some other categories. This income isnt reported and returns on it do not have to be filed.. People whose sole source of income are from these categories perhaps have not filed a tax return in many many years.

Now, as a condition for receiving your economic stimulus check from the govt you MUST file a return and you must have a certain level of 'qualifying' income. You are instructed to report your non-taxable income as taxable income on your return. That last statement bears repeating: You are instructed to report your non-taxable income as taxable income on your return.

This means that when you sign off on your tax return you are admitting that this formerly non-taxable income you're receiving is indeed taxable income now. What does this mean? It means technically, the IRS can tell you, that you OWE income tax on your VA benefits for example.

The IRS is even allowing people with this income category to file and claim their stimulus checks a year later. So you can file in 2009 and receive your check then, if you forget to file now. Thats very nice of them.


Does this mean that THIS is what is going to happen? We will find out in the next year or two Im sure. However, technically.. legally they can, as youve attested you earned taxable income. So just be careful if you happen to fall into this category of people especially if your sole source of income is VA benefits or some other non-taxable income.

[Cinderella]

yes ive heard about this...they give u the money now but they dont tell u that next year they will be taking it back.....thanks bush for lending me my own money.....U BASTARD!!!!!

[hillertexas]

So we have to claim our stimulus checks as income on next year's return?

[Bruno]

yes ive heard about this...they give u the money now but they dont tell u that next year they will be taking it back.....thanks bush for lending me my own money.....U BASTARD!!!!!

Bush doesn't deserve all the blame on this one. Both parties were glad to jump on the stimulus bus to pander to voters.

Btw - Economic Stimulus Package = ESP. Coincindence? :rolleyes:

[acptulsa]

So we have to claim our stimulus checks as income on next year's return?

I imagine so. But what the op is saying is that if you're a disabled veteran, for example, living only on non-taxable income, by endorsing and cashing a stimulus check you are admitting your income is taxable and maybe revoking the status of your income as non-taxable.

[hillertexas]

I imagine so. But what the op is saying is that if you're a disabled veteran, for example, living only on non-taxable income, by endorsing and cashing a stimulus check you are admitting your income is taxable and maybe revoking the status of your income as non-taxable.

Those sneaky bastards. :(


You are instructed to report your non-taxable income as taxable income on your return.

entrapment? They are being instructed to falsify the return.

[Bruno]

So we have to claim our stimulus checks as income on next year's return?

Supposedly not. I tried to call the IRS to confirm this, but got lost in a automated answer loop

http://www.irs.gov/newsroom/article/0,,id=182735,00.html



Q. If my stimulus payment is not going to affect my 2008 tax refund or increase the tax I owe next year, why is it I need to retain the letter that lists how much I received?

A. In the event you do not qualify for the full amount on your 2007 return but you do on your 2008 return, you will need to have the letter as a record of the amount you previously received. [New 4/11/08]

Q. Will the payment I receive in 2008 reduce my 2008 refund or increase the amount I owe for 2008?

A. No, the stimulus payment will not reduce your refund or increase the amount you owe when you file your 2008 return.


We're going to buy some PM's, save some, donate some to BJ's campaign, and purchase this cool automatic indoor composter. (not an ad, I'm not an investor). :)

http://www.naturemill.com/?gclid=CJz0nZaQl5MCFQ4yGgodyVlCgw

[hillertexas]

We're going to buy some PM's, save some, donate some to BJ's campaign, and purchase this cool automatic indoor composter. (not an ad, I'm not an investor). :)

http://www.naturemill.com/?gclid=CJz0nZaQl5MCFQ4yGgodyVlCgw

All of mine is going to my credit card debt :( boo!

[Cinderella]

So we have to claim our stimulus checks as income on next year's return?


ive heard yes we do have to claim it as income on next years return

[Cinderella]

Bush doesn't deserve all the blame on this one. Both parties were glad to jump on the stimulus bus to pander to voters.

Btw - Economic Stimulus Package = ESP. Coincindence? :rolleyes:

but its so easy to just pin point everything on him.... :D

[acptulsa]

ive heard yes we do have to claim it as income on next years return

I was wondering. They say it won't increase how much you owe, but I think they just mean it isn't a loan that has to be paid back, not that it isn't taxable income. Jackasses.

[Cinderella]

the gov and IRS always get their money back

[Chester Copperpot]

So we have to claim our stimulus checks as income on next year's return?

That Im not sure about. But once they know you get regular disablity checks theyre going to want you to claim it every year.

[Chester Copperpot]

I imagine so. But what the op is saying is that if you're a disabled veteran, for example, living only on non-taxable income, by endorsing and cashing a stimulus check you are admitting your income is taxable and maybe revoking the status of your income as non-taxable.

EXACTLY

[Danke]

I was just told this the other day by a retired IRS agent.

Everybody knows about the economic stimulus checks the govt is handing out this year. Fine good, everybody is happy. However there is a segment of people who receive non-taxable income from things such as disability from the VA, or railroad retirement income, as well as some other categories. This income isnt reported and returns on it do not have to be filed.. People whose sole source of income are from these categories perhaps have not filed a tax return in many many years.

Now, as a condition for receiving your economic stimulus check from the govt you MUST file a return and you must have a certain level of 'qualifying' income. You are instructed to report your non-taxable income as taxable income on your return. That last statement bears repeating: You are instructed to report your non-taxable income as taxable income on your return.

This means that when you sign off on your tax return you are admitting that this formerly non-taxable income you're receiving is indeed taxable income now. What does this mean? It means technically, the IRS can tell you, that you OWE income tax on your VA benefits for example.

The IRS is even allowing people with this income category to file and claim their stimulus checks a year later. So you can file in 2009 and receive your check then, if you forget to file now. Thats very nice of them.


Does this mean that THIS is what is going to happen? We will find out in the next year or two Im sure. However, technically.. legally they can, as youve attested you earned taxable income. So just be careful if you happen to fall into this category of people especially if your sole source of income is VA benefits or some other non-taxable income.

Source, not just "I was told..."

That make no sense and sounds like you're perjuring yourself: "You are instructed to report your non-taxable income as taxable income on your return."

[Mahkato]

Along with the stimulus checks they should send a little note with the name of the taxpayer from whom they wrested the money they are now giving to you, less administrative expenses, so that you can thank them for their donation.

[acptulsa]

Along with the stimulus checks they should send a little note with the name of the taxpayer from whom they wrested the money they are now giving to you, less administrative expenses, so that you can thank them for their donation.

No doubt who to thank--thank your children and grandchildren. They're the ones who'll have to make good on those T-bills.

[Chester Copperpot]

Source, not just "I was told..."

That make no sense and sounds like you're perjuring yourself: "You are instructed to report your non-taxable income as taxable income on your return."


Heres the instructions from the IRS


For purposes of meeting the qualifying income requirement, the following benefits need to be reported in any combination on Line 20a of Form 1040 or Line 14a of the Form 1040A.


Social Security benefits reported on the 2007 Form 1099-SSA, which people would have received in January 2008. People who do not have a Form 1099 may estimate their annual Social Security benefit by taking their monthly benefit, multiplying it by the number of months during the year they received the benefits, and entering the number on Line 20a of Form 1040 or Line 14a of the Form 1040A. Supplemental Security Income (SSI) does not count as qualifying income for the stimulus payment.


Railroad Retirement benefits reported on the 2007 Form 1099-RRB, which recipients would have received in January 2008.


The sum of veterans’ disability compensation, pension or survivors’ benefits received from the Department of Veterans Affairs in 2007. People are allowed to estimate their annual benefit by taking their monthly annual veterans’ benefit, multiplying it by the number of months during the year they received benefits, and entering the number on Line 20a of Form 1040 or Line 14a of the Form 1040A.
People should note that Line 20a of Form 1040 and Line 14a of the Form 1040A are designated for Social Security. To qualify for the economic stimulus payments, these lines should also be used to include any qualifying Railroad Retirement or veterans’ benefits.



http://www.irs.gov/irs/article/0,,id=179096,00.html

[angelatc]

So we have to claim our stimulus checks as income on next year's return?

Last I heard, they had not decided that yet.

As for the rest of it,

The IRS isn't exactly telling people to pay taxes on non-taxable income. Because the 1040A form doesn't have a place to report certain types of non-taxable income, they're having everybody use an existing line on the form. They're entering it into line 14a though, not 14b. Only 14b is the taxable income.

It does not increase their tax liability, nor does it change statutes that define what income is taxable.

Note the first instruction is to write "STIMULUS PAYMENT" across the top of the form.

Here's my source: http://www.irs.gov/newsroom/article/0,,id=179203,00.html

[Cinderella]

plain and simple...if u dont want to pay it back dont deposit it or spend it etc......send it back to the gov with some Ron Paul info on a sound monetary system!!!!

or u can donate it to someones campaign?