CORONA Corona Stimulus is signed, the clock is now ticking...post here when you receive your deposit or check
- Thread starter Kris Gandillon
- Start date
Tristan
Has No Life - Lives on TB
TerriHaute
Hoosier Gardener
SSI is taxable income - wish it weren't! We pay regular income tax on our Social Security. I was surprised to discover this the first year we started collecting it, I had always assumed it was not taxable. The other surprise was that insurance premiums for Medicare are automatically deducted from your Social Security. I thought Medicare was in addition to Social Security.
You betcha!
byronandkathy2003
Veteran Member
no ssi is not taxable i have been on ssi and ssdi since 1984 and have yet to be told it is taxable in 34 years or have to pay any taxes either..
so who told you it was??..
MinnesotaSmith
Membership Revoked
Unless they are already in default, in which case AFAIK all the previous "swipe the refunds" rules are all still fully in effect. Given that people with defaulted student loans are disproportionately in deep dukie financially, whatever their past poor decision-making, this would leave a significant # of people about to become homeless.
Armyvet75
Contributing Member
hello
the student loans are only given a 90 pause, why they did not do something with that is beyond belief
MinnesotaSmith
Membership Revoked
?? Not following you here, AV.
Armyvet75
Contributing Member
great info,
it will clarify things out that everyone will get a check reguardless even if they owe back taxes.the only thing that will keep someone from getting a check will be people in arrears for child support.not sure if it will then go to the spouse who has custody,a grey area
alchemike
Veteran Member
CaryC
Has No Life - Lives on TB
That's a yes and no.
If you go over the threshold, and that varies with individual, filing jointly, pension income, annuities etc...… it ALL hits the income bracket, and has to be counted, SS is not exempted.
Each year those "drawing" get a form from SS. On the back it has a computation to be filled out, and if you go over the threshold, you pay taxes on everything over. For example filing jointly and 65 and over (which means those over 65 get a double count where as those under and drawing don't) the threshold is roughly 32,000.00. Everything over is taxable.
It's not that SS is exempt from taxes, it's whether or not you hit the threshold, and a lot of retirees don't, and especially if SS is all you get.
20Gauge
TB Fanatic
From what we have been told it is similar to what you said......
1st 2019 tax filers
2nd SS receiptients
3rd 2018 tax filers
You are both correct, it MAY or MAY NOT be taxable depending on your filing status, gross income and other factors
20Gauge
TB Fanatic
What you are saying, and what I tell our customers, is that Social Security is taxable and does have means testing attached to it. The more you make the higher the percentage SS is taxable up to 85% of your benefits.
For those who said they would never means test SS you are in for a surprise. It has been done for decades. The ones who get a free ride are those who are on disability.
20Gauge
TB Fanatic
No it is taxable, but the rate may be zero % depending upon your income and filing status.
Just like the Obama care penalty. Many say it is gone, not true! It is set to zero and can be reset at any time. It will reset in 2025 as that is when the new tax law expires.
CaryC
Has No Life - Lives on TB
We're not 'counting' on getting this, however, I wonder about SouthernBreeze. Who is and has always been a housewife. Not old enough to draw SS, and other than on a joint return in 2016, doesn't file taxes.
20Gauge
TB Fanatic
Then she most likely won't get it.
A suggestion, (made by others but will be repeated), is that she may consider filing a return even if it has zeros on it. We have done this often for clients for specific reasons.
For example, in our county (and in much of Georgia) once you reach 65 and have less than $40k in Georgia taxable income, (not Federal AGI), you can take your Georgia return to the Tax commissioner office and show them the form. They will then eliminate the School tax on your property taxes for LIFE. In our county this is 2/3 of the property tax dollars. This often saves hundreds if not a thousand or two in property taxes each year.
Also certain items do not count towards that $40k. SS is one of them. I forget the rest, but I can look it up if any Georgia people here are still paying school tax and are over 65.
20Gauge
TB Fanatic
You in Georgia?
20Gauge
TB Fanatic
"Homeowners who are 65 years of age (proof of age required) or older on January 1, and whose income together with the income of the spouse does not exceed $40,000 for the immediately preceding year may claim an additional exemption from School Ad valorem tax. ***Please phone the office for special requirements (912) 554.7000. "
Each county in GA is different in how they apply the exemption. In Glynn County this is the rule. It would be line 13 on your Georgia tax return that they look at.
Each county in GA is different in how they apply the exemption. In Glynn County this is the rule. It would be line 13 on your Georgia tax return that they look at.
CaryC
Has No Life - Lives on TB
annieosage
Inactive
Well I apparently have a problem. I have owed the IRS 3 years in a row right around when Mike passed. My employer made an error and just getting things settled. Last year I got a whopping $98 refund but it was applied to what I owe. This year, I got a nice size refund which will almost knock out what I owe. BUT- I went only to check on my status and it said IRS rejected it because they could not find my filing for last year! So now, I will be on the phone with them all day tomorrow trying to straighten this out. Who know when I will get anything....UGH
20Gauge
TB Fanatic
Taxpayers in 2019 1st
SS and Disability 2nd
Taxpayer in 2018 3rd
What the last "official" statement says, but it does change daily.
20Gauge
TB Fanatic
No it is not!
You do have to balance it at the end of the year with the next year's tax return, but it is not an advance on the loan like obama care was.
This is not being treated like the last batch of "free" cash hand outs with Bush.
20Gauge
TB Fanatic
It is not a loan! Also, if you filed and qualify they will send it. You really have no choice in the matter.
20Gauge
TB Fanatic
Guidance has already been provided. It is not an advance on taxes paid.
20Gauge
TB Fanatic
You messed up. This should have been done years / months before this happened. If you waited until the last minute, shame shame.....
20Gauge
TB Fanatic
All student loans are on hold.
MinnesotaSmith
Membership Revoked
Including, for everyone with student loans in default, swiping all .gov checks otherwise intended for them? This is routine for IRS refund checks, even for low-income sorts.
I been prepping forever. This went mostly on upping cat food and meat and fish to a years supply. DH no longer thinks my super pails and # 10s are crazy. Or my Cabelas stash. Or my grain mill or my etc etc. So I guest shame shame is in being able to afford all this?
What they are now saying is that:
The loan must be at least 75% for payroll. They are not processing independent contractors, sole proprietors, or partnerships yet. They may not include partnerships at all. There has been no guidance issued on partnerships yet.
Assuming the loan is originated, it will be a minimum of 8 weeks before they decide whetherthe loan is forgiven. Note the legal language: can be forgiven, not will be forgiven.
For the loan to possibly be forgiven you must prove 75+% has been spent on payroll expenses. Payroll expenses isn’t necessarily what is going to kill a business.
There are several SBA loan categories. The only one that potentially offers forgives is the one for payroll.
20Gauge
TB Fanatic
you are mixing the programs.
You are mixing.
1) $1200 in not an advance on taxes
2) Up to 2 months expenses from the SBA is basically a grant
3) The payroll, which I have not studied.
20Gauge
TB Fanatic
No idea. I expect if you owe the government, you won't get the cash, but who knows.
Oh almost forgot. Spent 400 bucks on an Instacart order for a handicapped neighbor and misc.other donations.
Good enough for you?
Not in my county. I’d always been under the impression when we hit 65 we’d be exempt from school taxes but got a rude awakening earlier this year. We may apply for a additional $10,000 exemption in addition to the $2000 basic homestead the year after we turn 65 but as far as being totally exempt from the school portion - nope, it’s not so...
No, I'm not. You are. All I was referring to in my last post was the SBA stimulus loans. The "loans" are not grants. You need to speak to the lenders/banks to get all of the details though in actuality they don't have all the answers yet themselves. Certain people in the government want to make the lenders of record be accountable if a recipient doesn't repay the loan in the case that they are not granted forgiveness for the payroll protection loan or for the others that are not covered in the potential forgiveness being granted.
They change parts of it nearly every day. It is like you have to apply to actually know what the terms of the loan are. But you won't know all of the terms until maybe 8 weeks in assuming you fulfill their requirements. Supposedly the first loan payment isn't due until 6 months after the loan origination but it could be that interest builds up until that time so the six months no-payment isn't actually free of consequences.
Originally the loans that weren't being granted forgiveness would only have a 1/2% interest rate. That's been bumped up to 1% now and it can go as high as 4%. Since it isn't stamped in concrete yet, who knows where it will stop, it just won't be more than 4% unless Congress amends that piece.
You don't know which loan program they will put you in because all of the SBA covid19 disaster programs start with the same application. It could be months before you receive your first penny but if in the meantime you lower employees hours or lay any off then you automatically no longer qualify for forgiveness.
The banks got nervous about being left holding the bag so they've started tacking on some qualifications of their own in addition to the ones from the feds.
And as for the so-called 10 day approve it or trash it timeline for SBA loans, that's not going to happen. BofA has had their SBA loan portal open for several days now. On the first day it opened 85,000 of their customers applied. That one bank for one day. Chase is even bigger than BofA. Then there are all of the regional and local banks also going after this pot of money since they get 5 points back for every loan they originate. We own stock in a local bank so we're seeing this from the inside as well as they outside. But also, there will be a problem for the banks if the applicant does not pay back then money for whatever reason … including they went in assuming it was free money with auto forgiveness and that is NOT the case.
There are too many unknowns at this time.
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As for the other "free money" for individuals … they haven't really put it in concrete what it is. There are those saying what it is, but bill's language is pretty ambivalent. There will need to be amendments to clarify it. They passed the mandate without the mechanism in place to accomplish it. There have been a lot of assumptions made, but just like there is no guaranteed forgiveness and the sba loans, accountants aren't declaring that the "free money" won't affect your taxes for 2020 or 2021. They just have no way of knowing at this time. The IRS isn't even clear yet on whether it is a credit, advance, or grant … they are simply trying to send out checks starting at some point in April. Here is part of a discussion on the topic of the "$1200"
So as you can see, even the bill its uses muddy language and not explicit language to say for sure how the $1200 stimulus check will be treated.
CaryC
Has No Life - Lives on TB
Just a bump as a reminder.
Around the 1st Munchin said it would be 3 weeks, making it around the 21st. Then came out a couple of days later and said they have improved the process and it should only be 2 weeks, making it around the 14th.
If calculations are correct we only 5 more days.
Around the 1st Munchin said it would be 3 weeks, making it around the 21st. Then came out a couple of days later and said they have improved the process and it should only be 2 weeks, making it around the 14th.
If calculations are correct we only 5 more days.
