You know those $250 checks now being sent to Social Security recipients courtesy of President Obama's economic recovery package? Well, some seniors may have to pay some of it back to the government.
The problem, according to a Washington Times report, is that Social Security beneficiaries who are still working full time also qualify for Obama’s $400 Making Work Pay workplace tax cuts and, unless the tax laws are changed, they cannot qualify for both. The “surplus” will, have to be paid back to the government.
“Congressional and IRS officials say taxpayers cannot double-dip into both programs,” says the Times. “If you are getting extra Social Security money and benefit from a lower withholding in your paycheck, the two will have to be reconciled when you file your 2009 tax returns next year.”
If this comes as a surprise to you, you are far from alone. “I have seen no publicity to tell people drawing Social Security that they are not eligible for both the Social Security payment and the Making Work Pay tax credit,” Roberton Williams, senior fellow at the Tax Policy Center in the Urban Institute told the Washington Times. “The only people who know this are those who carefully read the stimulus bill," said Mr. Williams, adding, "It's only 600 pages long.”
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