What Tax Rebates Are Applicable To Social Security Benefits


The money that you contribute to your social security account goes from your direct income and in such a case it is obvious that you should be getting some tax benefits. The Internal Revenue Service has tied up with the United States Social Security Administration to offer special tax rebates to people who regularly pay their social security contributions or whose source of income is social security payout.

These rebates have been made available under the provision of a Federal law which has been introduced to help the national economy of Unites States get out of the doldrums of subprime mortgage crisis. It must be noticed that an earlier version of this law was not applicable to the elderly citizens for whom the only source of income was the social security payment. It was due to the efforts of Senator Sheldon Whitehouse that the legislation was amended to cover this group.

Rebate Calculation
The amount of rebate that you will get depends upon two factors - one the 'income' that you made from social security benefits and two whether you are filing the return as an individual or as a married couple filing a joint return.

Social Security retirement benefits, Social Security survivor benefits, and Social Security disability benefits all count while calculating the concept of 'income'. Please note that in certain cases, the 'income' may also include the veteran benefits.

You must have a minimum of $3000 in such 'income' in order to claim tax rebates. If you are filing the return as an individual, you will get around $300 in rebate. If you are filing the tax return jointly as a married couple, you will get the rebate of up to $600.

Process for claiming and delivery of tax rebates
The process to claim and delivery of these income tax rebates is as follows.

You have to start by filling U.S. Form 1040A or Form 1040. This form requires you to provide your name, address and Social Security number. The form also requires you to fill the benefits that you get from Social Security Administration. This has to be done in question 14a of the Form 1040A, or in question 20a of the Form 1040. If you would like a direct deposit of rebate in your bank account, fill in the relevant section and superscribe the form with words "Stimulus Payment". When you are done, just send the form to IRS. The rebate distributions are conducted by IRS and are generally delivered around May - June.

While originally intended as an economic stimulus measure, the social security benefit tax rebate has become a great money saver for people with disability who have to rely solely or primarily on the Social Security Disability benefits in order to sustain their livelihood.