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Contact Us
Cook & Co.
Bara Business Center
124 South Main Street
Arab, Alabama 35016-1351
  • Main Tel: 256-586-4111
  • Nationwide: 800-551-6253 or 54
  • Birmingham (Direct): 322-7452 
  • Huntsville (Direct): 534-6922
  • Fax: 256-586-4138
  • Email: info at bara dot net
  • Directions: Map
  • Office Directory


www.cookco.us
 

 

 

Qualifying Income

For those who are not required to file a 2007 federal income tax return, what constitutes “qualifying income” for meeting the “at-least-$3,000” test for economic stimulus payment purposes?

 

(Note that any combination of the “qualifying income” items can be used to meet the “at-least-$3,000” test.)

Qualifying Income

NOT Qualifying Income

 

 

Social Security benefits within the meaning of Section 86(d) of the Internal Revenue Code, which are:

Social Security retirement benefits

Social Security survivor benefits

Social Security disability benefits

(These are reported in Box 5 of Form SSA-1099)

Supplemental Security Income (SSI)

 

 

Social Security-equivalent Railroad Retirement Board Tier I benefits

(These are reported in Box 5 of Form RRB-1099)

 

(Note: Railroad Retirement Board Tier I benefits are included within the definition of Social Security benefits under Section 86(d) of the Internal Revenue Code.)

Non-Social Security-equivalent Railroad Retirement Board Tier I and all Tier II benefits

(These are all of the benefits reported on

Form RRB-1099-R)

 

 

Benefits received under Chapters 11, 13, or 15 of Title 38 of the United States Code, which are:

VA disability benefits

VA pension benefits

VA survivor benefits

All other payments from the Department of Veterans Affairs

 

 

Earned income within the meaning of Section 32(c)(2), which is:

Ø      Wages, salaries, tips and other employee compensation, but only if such amounts are includible in gross income for the taxable year;

Ø      Net earnings from self-employment includible in income for the taxable year, after deducting one-half of any self-employment taxes due (IRC 32(a)(2)(A)(ii));

Ø      Excludible combat zone income (IRC Section 112) received before January 1, 2009, which the taxpayer elects to treat as earned income.

Ø      Net earnings from self-employment which are not taken into account when computing taxable income.

Ø      Pension or annuity income (IRC 32(a)(2)(B)(ii))

Ø      Income earned while an inmate at a penal institution (IRC 32(a)(2)(B)(iv))

Ø      Interest

Ø      Dividends

Ø      Alimony

Ø      Capital Gains & F.4797 Gains

Ø      IRA, 401(k), 403(b) Distributions

Ø      F.1040 line 17 (Rents / royalties / partnerships / S-corps / trusts) may or may not be earned income – must ask more questions

Ø      Unemployment Compensation

Ø      “Welfare” benefits

Ø      Any other “unearned” income

 

 
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Copyright © 1994-2010 Cook & Co. Toll-Free Nationwide 1-800-551-6253 or 6254  Main Tel. 256-586-4111 Fax 256-586-4138 Bara Business Center 124 South Main Street  Arab, Alabama 35016  Direct Phone Lines From Birmingham: 322-7452 Huntsville: 534-6922  Cook & Co., Enrolled Agents are licensed by the U.S. Treasury Department to represent taxpayers before the Internal Revenue Service (IRS). Greg Cook is a Certified Public Accountant (CPA) licensed by the states of Alabama and Tennessee.

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