Although anecdotal, all of a sudden some of my clients in the construction industry have work again after at least a year of very hard times.  Perhaps we have rounded the corner?  I hope so.

One of the very frustrating aspects of this economic downturn is the huge heaps of uncertainty surrounding us.   For example:

• The tax credits for home purchases keep getting extended after they expire.  So do I have to buy now or not to get the credit?  When these credits finally do expire, will the housing market go into another tailspin?
• Huge healthcare overhaul legislation is passed but the brunt of the changes are still years away.  In the meantime, cost controls on premiums are non-existent.  What will be the ultimate effect of these changes on small business and individuals?  Will the legislation be repealed by the Republicans before ever going into effect?
• Financial reform legislation is passed.  The big question though about the new regulations is how effective will the new consumer agency be?  Has the “to big to fail” problem really been fixed given that most pundits say the new law does not go far enough?
• Has the oil spill in the Gulf really stopped and what is going to be the long-term effect of the spill on the region?   Will BP make good on all its promises to compensate the victims?  Is offshore drilling going to be restricted as a result of this disaster?
• Are we going to leave Afghanistan next year or not?
• Is the Iraq occupation going to be over or are we going to stay there for the next hundred years?
• Will the Federal government get control of its budget?  In trying to do so, will the government kill off any possibility of future job growth?
• Will Arizona successfully start enforcing immigration laws while other states follow their lead or will the Federal government get the law overturned?
• Will the Bush tax cuts expire next year?  Will there be a tax increase on the middle class as a result?  Will the Federal estate tax be retroactively re-instituted for 2010 and be in effect in future years?  What will be the effect of increasing taxes on higher income individuals?

Markets hate uncertainty.  About the only thing you can be sure of these days is that is we are living in very uncertain times. And that is not good for the economy, that’s for sure.

Download audio file (20100321_wesun_16.mp3)

The Internal Revenue Service has always been a source of consternation for many Americans, but in tough economic times like these, the anger seems more strident. Anti-tax forces have called for the abolition of the agency; one man took out his rage by flying his small plane into an IRS building, killing himself and one employee. Host Liane Hansen speaks with Douglas Shulman, the IRS Commissioner, about what the agency is doing to help people struggling financially, as well as the IRS’ efforts to keep employees safe.

IRS employees do not write the tax laws.  Do not kill the messenger.  Times are tough but it is not their fault.

www.youtube.com/watch?v=xtXvCX3Tn24

Issued by the IRS today.

Click to enlarge

Click to enlarge

Here is the entire 2009 IRS Pub 17.

I ran an entire CPA firm using this computer including doing audit workpapers and taxes.  I used MS Word.  You put the Word floppy in the A drive and your data flobby in the B drive.  But Word back then was around 8 floppies as I remember so everytime you did something in the program that wasn’t on the floppy you happened to have in the drive you had to change it to the correct floppy to continue.  Of course those were the MS-Dos days, no windows, no icons.  You had to know that “c:/programs/microsoft/word/word.exe” (enter) was the only way to load the program.

This computer actually had a metal keyboard, the keys and all!  Can you imagine that.  Kind of like when they used to make cars out of metal.  It was called an IBM “luggable” since portable was a misnomer given its weight.  As I recall it cost me around $3500 used from an IBM employee.  They were upwards of $10,000 new.

Down the road I actually installed a hard drive in the computer by removing one of the floppy drive bays.  It was a 20mb hard drive!  Can you imagine that.  And I don’t exactly recall but I am sure the drive cost at least $700 or more, used!.  And this was when hard drives had a rubber band on the bottom of them, something like what you find in vacuum cleaners, that turned the drive arm and eventually wore out.  Years later I ended up putting it out by the road so that someone else could snag it for themselves.  It was gone in 5 minutes.  Didn’t have the heart to actually throw it away.  Now I wish I still had it as a momento.

I also owned a IBM series II laser printer.  It took two people to move the printer, cost me $2300 (it was a year old used unit).  My firm in three years ran 300,000 plus pieces of paper through that laser printer.  When I finally tossed it ten years later, it still worked fine.  It just took up too much space.

Wow, have we come a long way.  But if you compare those times to writing computer programs in my Fortran IV class in college using a punch card machine, it was quite a miracle to have my 35 pound ‘puter.  What are punch cards you say?  What is Fortran IV?  Aw forget it.

Special Report: Economic Recovery Bill Provides Social Security with Resources to Help Americans

On February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act of 2009. Among its provisions are one-time payments to Social Security and Supplemental Security Income (SSI) beneficiaries, as well as funding to help the agency address critical needs.

One-Time Payments of $250 For Social Security and SSI Beneficiaries

Nearly 55 million people who receive Social Security and SSI benefits will get a special one-time payment of $250. They should receive the one-time payment by late May 2009.

• • The payments will be automatic, so people receiving benefits do not need to take any action.
  • People who receive both Social Security and SSI benefits will receive only one payment of $250.
  • The legislation also provides for a one-time payment to recipients of Department of Veterans Affairs (VA) and Railroad Retirement Board (RRB) benefits. However, if a person receives Social Security or SSI benefits and also receives VA or RRB benefits, he or she will only receive one $250 payment. Social Security will send that payment.
  • In April, Social Security will send an advance notice with further information to each person who is eligible for the one-time payment.
  • So that we can issue the payments as quickly as possible, we ask that people not contact Social Security unless their payment is not received by June 4, 2009.

Meanwhile, we encourage people to visit www.socialsecurity.gov/payment for answers to frequently asked questions about the economic recovery one-time payments.

So Social Security recipients should receive a notice in April and the actual $250 payment in May.  You must have been eligible to receive benefits for November and December 2008 or January 2009.  In other words if you became eligible after January 2009 to receive SS benefits, you will not receive the payment.  The funds will be delivered the same way you currently receive benefits (direct deposit or paper check).

Please note also that $250 payment is tax free to the recipients.

39 Comments

• At March 8, 2009, All Free Video - Best of The Best » Blog Archive » Social Security Recipients to Receive 2009 $250 Stimulus Payment … wrote:

  [...] Url : http://www.cpajohn.com/2009/03/06/personal-taxes/social-security-recipients-to-receive-2009-250-stim... [...]

• At March 19, 2009, Rita Batt wrote:

  I currently have my 84 year old Mother with me, as she is house-bound and needs care. She filed an income tax return last year, just to receive the stimulus check. I personally mailed it in for her. She has never received a check. I am also on Social Security, and I received my check. I mailed both returns at the same time. What can she do to get the stimulus check that she had coming to her?

• At March 20, 2009, admin wrote:

  I assume you are talking about the 2007 tax return year filing. There is a provision to obtain the 2007 stimulus payment when you file your 2008 return if you did not receive it in 2007 (or only received part of the credit and now you are eligible for a further credit).

  I recommend that you file a return for 2008 for your mother and claim the credit on that return if based on her 2008 income she is eligible.

  If your mother in no longer eligible for the stimulus payment for 2008 based on her 2008 income, I recommend that you call or write the IRS concerning the status of the 2007 return and the stimulus payment that was claimed on that return.

• At March 22, 2009, Nick wrote:

  Does that mean people who receive SSI need to file a tax return also to get the credit plus the SSA $250 (that isn't needed to file anything)? Thanks.

• At March 25, 2009, Elizabeth wrote:

  This extra money is a God send! I'm on ssi and I have a teenage son who is going to the prom and will be graduating in May so this money is really going to help out ALOT!!!

• At March 27, 2009, Sue Quint wrote:

  All you can think about is spending the money on PROM? You must not really be that bad off. I am disabled and receive Social Security and I think of this as a God Send so I can buy groceries, and help pay my heating bill for the winter.

  I'm suprised you didn't say buy your son a video game, or a Wii, or to update your blackberry.

  How selfish!

• At March 27, 2009, John wrote:

  The $250 you will get without doing anything as long as you are eligible. If by the credit you mean the stimulus that was paid in 2008 based on 2007 return, you can file a 2008 return if you are eligible to get that credit and did not receive it in 2008.

  If by credit you mean the payroll tax reduction that is effective April 1, that will happen automatically in reduced tax withholdings in paychecks for periods after April 1, 2009.

  Hope this clarifies.

• At March 28, 2009, john ascot wrote:

  hey, mr. soc sec using the 250 for heating bill

  at this late time in your life,,,,,have you ever

  figured "different strokes for different folks".

  who cares what anyone will do as long as they

  spend the damn thing and get the economy rolling

• At March 31, 2009, Janet Gallmeyer wrote:

  I received my first social security check on March 10th, 2009. I understand that I am not elligible to receive the $250 stimulus on my social security deposit.

  I am retiring from my position on April 15th and have one paycheck left to be paid to me on April 15th.

  How will I receive my stimulus money?

  Thank you,

  Janet Gallmeyer

  Texas

• At April 3, 2009, sandra hiers wrote:

  amen-amen

• At April 10, 2009, shawnann dunkin wrote:

  My childern recive ss from their dads disability,will they recive a check?I am really confused.They did last time but i dont know about this time.Their payments are a form of child support,through social security.

• At April 10, 2009, RJ wrote:

  I recently began helping a sibling with elder care. God bless her, she has been carrying the load for many years and should have accepted help sooner as many things have fallen through the cracks.

  One of these items includes the stimulus payments that, if I understand correctly, my parents could have received in 2008 had we filed a 2007 return for them.

  Questions

  1. But were they, in fact, eligible in 2008? They are 94 and 87, and receive only Social Security and my father's civil service pension. Total amount is less than $25K for the household.

  2. If they were eligible in 2008, what options do I have to still help them claim that payment?

  3. I thought I could claim it for them by filing a 2009 return, but the 1040A instructions seem to indicate that they must first have wages/earned income of some kind, and can only then add in the SS and pension to arrive at the $3,000 minimum of qualifying income.

  4. Tangentially related: Is the property tax deduction available to people who would not normally file and who have only SS and pension income?

  I realize this very last minute, but as I mentioned earlier, I only just discovered the situation--as in early this morning.

  Any guidance is very much appreciated.

  Thank you, RJ

  P.S.I've spent most of today at the IRS web site trying to obtain these answers on my own, including starting to fill out the Free File forms.

  Having successfully filed my own taxes this year (including a Schedule C for my own business), I thought that finding the answers for my parents would be a snap. Ha! Big mistake in that assumption!

• At April 10, 2009, admin wrote:

  Social security qualifies as income for purposes of the $3000 threshold. You must file a 2008 return in order to claim the credit.

• At April 10, 2009, admin wrote:

  "4. Tangentially related: Is the property tax deduction available to people who would not normally file and who have only SS and pension income?"

  Yes it is available but if you do not owe any taxes it will not end up benefiting you.

• At April 11, 2009, diana wrote:

  Good Lord, Lady even Children who's mom and dads are on ssi deserve to go to the prom. you might just be selfish!

• At April 18, 2009, kenny wrote:

  I think what a person does with there check is there business stop being so judgemental, you want and need heat, she needs to make her son happy nothing selfish about that. Shame on you

• At April 21, 2009, CJ wrote:

  I think they can keep their stupid money. To many Americans feel the government owes them something and what ever happened to the idea that if you couldn't afford it you didn't get it theory? America is great but I'm sick of everyone thinking it owes them something for nothing.

• At April 21, 2009, Jane wrote:

  You won't get anything. If you couldn't afford to retire without the whopping BIG 250 you should still be working. What ever happened to the theory if you couldn't afford it you don't get it?

• At April 21, 2009, John wrote:

  @CJ, "Their stupid money" is actually your money assuming you have paid some taxes over the years or more accurately it is borrowed money that the government is one day probably going to tax back from us or our descendents.

  But I agree that giving seniors $250 as a way to stimulate the economy may not work. It makes more sense to me that the money be used to assist the car makers or give incentives to manufacture alternative fuel cars or some other new manufacturing project.

  We need to produce items that people will buy to rehabilitate the economy. Borrowing and spending will only take us eventually to the poor house.

• At April 25, 2009, PB wrote:

  My son who is 27 years old receives SSI because of his disability with Cerebral Palsy. Because he lives with us full time we are able to claim him as a dependent on our tax returns. Last year he did not receive the stimulus payment because we claim him as a dependent. Will he be eligible for the stumulus payment this year(2009)? I have elderly friends who received their letters this week letting them know of their eligiblity for this year's payment of $250. My son did not receive a letter. Does this mean that he is not elibile for the $250 payment?

• At April 25, 2009, John wrote:

  @PB, Yes your son should be eligible to receive the $250 payment as long as he received a SSI benefit in Nov 2008, Dec 2008, or Jan 2009.

  This link might be helpful in explaining the details.

• At April 29, 2009, admin wrote:

  Here is a follow up article at the Seattle Times.

• At May 3, 2009, mark wrote:

  yes if they are recieving off his account

• At May 4, 2009, Walt wrote:

  Hey Sue Quirky! or whatever, WOW! you have some gaul knocking on someone just for the fact that they decided to use their stimulus check for their sons Prom. Guess what LADY ... the prom is a big deal to these kids and just because you were most likely dogged at your prom "probably" because of your winning personailty" isn't anyones fault but your own. Its your own fault that you can't afford food or money for your heat ... work for it! and if your retired or older ... you should have saved for the future, not anyones fault but your damn self!!!

  @Sue Quint,

• At May 8, 2009, carolyn floyd wrote:

  IM HAPPY FOR EVERYBODY WHO WILL RECIEVE THE 250. CHECK SPEND WELL NOT ON DRUGS.

• At May 11, 2009, yvonn johnson wrote:

  I recieve child support. Will I get 250.00 from the stimulas package?

• At May 11, 2009, ke wrote:

  y child recives ssi since i did not file taxes does she still get the one time pand does it go off of your socail security number

• At May 13, 2009, RG wrote:

  Both of my twins (they'll be 14 this month) receive SSI for themselves, not through us. We have not received the letter in the mail saying they are eligible for the 250.00. On some sites I read they are eligible and others aren't. On that link of the Seattle paper that the admin posted it is really confusing. I don't know if thats pertaining if you received the big stimulus credit you wont get this or what. I just don't understand it. Please help! Thanks!

  Ramona

• At May 18, 2009, Kevin wrote:

  When will you get your money?

  Social Security is squeamish about specifying a schedule because it doesn't want to alarm folks who might not get the payment when they expect it. But you should get your money within a few days after you receive your regular monthly benefit. If your benefit is normally deposited into your bank account on the second Wednesday of the month, for example, the extra $250 should show up by the following Monday. (Be sure to adjust your balance accordingly.)

• At May 19, 2009, gwendoly session wrote:

  my husband recieves a check from the VA is he eligible for the 250.00 stimulus payment?

• At May 19, 2009, John wrote:

  @gwendoly session, He must have received a social security benefit last Nov, Dec 2008 or Jan 2009 to be eligible to receive the $250 stimulus payment.

• At May 20, 2009, Jodi wrote:

  @Sue Quint,

  The children of low income families are not immune to the needs and wants of other children. I consider prom and graduation expenses to be a perfectly legitimate use of this money. You, on the other hand, have heating bills every year and should include that cost in your routine budget planning.

• At June 23, 2009, antiguy wrote:

  @Walt, how old are you 14? i am on ssd and completely understand her outrage. though i do understand and agree that the 250 is yours and you are free to do whatever you want with it. it kind of burns to people who live from month to month barely making it.

  as far as it being her fault she has no money. SHE IS DISABLED YOU SOCIOPATHIC CRETIN. ill bet anything you are a republican! for many people in this country, disability comes through seeking medical help for years and encountering gross incompetence from medical 'professionals' until their disability is permanent and tragic. forget malpractice because in the case of this kind of gross incompetence finding a doctor who will commit to giving a written acknowledgment of it is like seeking the holy grail. especially since there is a two year window on malpractice suits even in the event of LIFELONG DISABILTY OR DEATH! SO HOW IS THAT HER FAULT IF THAT IS THE CASE?

  personally i had a 7 year period where i was misdiagnosed by dozens of doctors during which time i suffered three heart attacks which were misdiagnosed AND had had a social security doctor declare i was in good health and that my heart was fine and i was subsequently denied disability. less than three months later, i had another heart attack, a massive MI which was finally diagnosed and then i had a triple bypass, ALL BEFORE I WAS 40! (since then i have had another heart attack, three strokes,pulmonary embolism,CHF,etc. basically those doctors killed me and i am just waiting for it to be final) i had even gone to the administration offices of two of the hospitals i went to and told them i was not being diagnosed correctly. they did NOTHING to help! the fact is that most people in medicine do not care one bit whether or not you live or die as long as they get paid!

  and to top it off, we have to listen to freakish, unintellectual comments from things (i say things because you have no compassion or humanity and as such are not human) like you. your comments to that woman are thoughtless,uninformed and cruel. lucky for you that you have a computer to hide behind huh?

• At June 23, 2009, Walt wrote:

  @antiguy,

  Here... let me take the foot out of your mouth for you Mr. ...O’h you didn’t post a name... Antiguy, you don't even have the guts to use your first name... and you come at me with "good thing you got that computer to hide behind" Little hypocritical there ANTIGUY! Even though it's none of your business... I am also on SSA and have been for over 5 years now, and consider myself a Democrat if you must know... ANTIGUY. So you know, I’ll only reply to you once…. due to my rule of never getting into a battle of wits with someone that is unarmed. I really enjoyed hearing about your ENTIRE medical history also "NOT!” Just please keep your repulsive medical history to yourself… I was in a good mood until I read your post, Christ, now I feel like committing suicide for godsake. My reply to her back then was to try and somehow enlighten her on the issue that it’s none of her damn business what anyone else spends their money on… just because she’s in a bind does not mean she has the right to tell anyone where they should spend their money…. Maybe we should have that young boy stay home from the prom and he could cook her up a couple prime rib steaks… how about that? Maybe she would feel better then… knowing that the funds didn’t get spent on some dumb once in a lifetime experience that produces hundreds of memories that will in-turn be shared with others for years to come. I have degrees in Criminal Justice Law Enforcement and Management… and I know for a fact that over 30% of people whom eventually get approved for SSA and SSI are no more disabled then our President is. That accounts for hundreds of millions of dollars within a span of a year. Are you one of those people ANITGUY!? Maybe we should check into your past a little closer huh… what do think, yes? You seem quit articulate and have so much free time replying to posts throughout the internet…. Maybe we can get you a sit down computer job… sound good, or are you starting to feel chest pain again since I brought that up. It’s a good thing I have a computer to hide behind huh? …. email me antiguy, I’ll give you my resident address, oopps… or does antiguy mean you’re actually a woman whom is a Fanatic Freak who works for womens-lib.

• At June 26, 2009, beaves wrote:

  i am a veteran and i receive va disability i got a letter saying im going to receive the 250 dollar check, but i havent received it yet. i was wondering if anyone knew when they get sent out or when the final date to receive is. thank you

• At October 8, 2009, justin wrote:

  i am 20 years old my son was born with trisomy 21 (down syndrome) i am having a hard time finding steady work my wife cannot work due to our son needs so much attention we recieve ssi on him and sometimes thats all we have to try and pay the bills someone told us my wife could get benefits due to the fact she cant work because of our son adrien does anyone have any information on any of this

• At February 4, 2010, Shirley Propst wrote:

  We are an accounting firm, doing tax returns. Is there a site, as there was when the stimulus payments were made in previous years, where I can enter taxpayers social security number, etc and find out if clients on social security received the $250 economic recovery payment?

• At March 16, 2010, Mike wrote:

  @CJ, Americas Great no work from 1999 til still and things are going to get worse. If you didnt figure it out capitalizm went bankrupt and there is no bandaire big enough to fix it. Feel sorry for those who havnt gone broke yet. You all will get a taste of reality real soon!

• At June 23, 2010, Monica(Dorothy) Peterson wrote:

  @Rita Batt,

  Please know that I did not receive my stimulus Package of $250.00

  and would appreciate your sending it. I am a Social Security Receiptient.

  mmoniquedp@sbcglobal.net

Image via Wikipedia

This post has nothing to do with accounting. Or does it? My spouse loves slot machines and drags me along to the casino periodically. I have to admit I feed the machines money too (not nearly as much as her) out of boredom mostly. The machines violate my sense of rationality though since I know as everyone should that it is a loser’s game. You just cannot be a winner in the long run. And who wants to be a loser? And yet this activity makes my spouse happy? Go figure.

www.youtube.com/watch?v=c-4flnuxNV4

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