Schedule M Work for pay credit

[GeorgeM]

Can someone tell me that if a couple earns over 50,000. but it is all earned by the wife, the husband has only retirement income, are they entitled to $400 each?

The form calculates it as such.

The e-file was rejected stating that one of them received a payment from either SS, VA or railroad retirement. But neither received any such payment.

I understand that it is a work for pay credit and the husband did not work, but nowhere on the form allows you to state so.

What do you do in this case?

:scratch_head:

[Lion EA]

Paper file. But, I'd probably put in the $250 and e-file, then have the husband fight it out with the VA or whoever, if the cient chooses that route. $800 for MFJ.

Had one where I had to put in $250 for client. Her minor daughter received SS due to the death of her father. But, the SSN is on mother's return as dependent, so IRS insisted on the $250 reducing her MWP credit of the single mother last year. Mother has been dealing with SSA all year to show were she received $250.

Since the $250 was direct deposited, many of my older clients didn't realize they received it until I had them look at bank statements.

Since the $250 was a 2009 issue, you shouldn't have many that didn't receive it until 2010, amendments, late filing, paper filing late in year, etc.

[Pacun]

Don't paper file. Go to the form and indicate that taxpayer got $250 advance Make work credit and you should be fine. Everybody who was collecting SS benefits in Nov 2009 got the $250 in 2010.

[Joel]

Don't paper file. Go to the form and indicate that taxpayer got $250 advance Make work credit and you should be fine. Everybody who was collecting SS benefits in Nov 2009 got the $250 in 2010.

[Joel]

The credit was paid in 2009 for those who received SS benefits in 2008. Only a few people would have the $250 in 2010 not everyone as state by Pacun.

[Kea]

For the first part of your question, "Yes", they can get the full $800 even if only one worked. I had several of these last year.

To check if either got the $250 Economic Recovery Payment in 2010, you can check here:

ERP

[grandmabee]

The credit was paid in 2009 for those who received SS benefits in 2008. Only a few people would have the $250 in 2010 not everyone as state by Pacun.

isn't the donut hole people who got 250 in 2010?

[Pacun]

The credit was paid in 2009 for those who received SS benefits in 2008. Only a few people would have the $250 in 2010 not everyone as state by Pacun.

You are absolutely correct. Except that this one was already rejected precesily because of a problem with the credit. Efile matches the credit and then rejects. If he sends it by paper, client will get a letter and there is no need for that.