One-Time Payment to Retirees

Retirees, disabled individuals and Social Security beneficiaries and SSI recipients receiving benefits from the Social Security Administration, Railroad Retirement beneficiaries, and disabled veterans receiving benefits from the U.S. Department of Veterans' Affairs will receive a one-time payment of $250 in 2009.  The one-time payment will reduce any allowable Making Work Pay credit.  Thus, taxpayers receiving any of the benefits mentioned above who are working will be required to reduce any otherwise allowable Making Work Pay credit by the $250 one-time payment.  At the time of this article, no date was specified for release of the payments, which presumably would be made in conjunction with the taxpayer’s SS, RR or Veterans payments.

Government retirees who are not eligible for Social Security will also receive the $250, but in the form of a credit on their 2009 tax return, which will reduce any otherwise allowable Making Work Pay credit for 2009.

---