The moment we’ve all been waiting for! The final installment of Senior Correspondent Mike Causey’s “Most Popular Federal Reports of the Year” (so far.) This column was originally published on March 2nd. sk

The new economic stimulus plan includes one-time cash payments and/or tax-credits for millions of Americans whether they are working or retired. The plan is complicated, and controversial.

Some say it is the only way to pull the nation out of recession. Others say we are mortgaging our children’s children’s future.

Bottom line: What’s in it for you — and me?

We put the question to Jill Crissman. She’s with the legislative department of the National Active and Retired Federal Employees Association. On our Your Turn with Mike Causey radio show she talked about the $250 payments for retirees. Our other guest, financial planner Arthur Stein, gave tips on what you should, and should not be doing, with your TSP account. That show has been archived and you can listen, anytime, by clicking here.

Meantime, here’s Jill’s take on how the stimulus package will impact you:

Wage-earners:

The “Make Work Pay” provisions of the American Recovery and Reinvestment Act (stimulus bill) will provide a refundable tax credit of up to $400 for working individuals and $800 for married taxpayers filing joint returns in both 2009 and 2010.

For most employees (who receive a W-2 from an employer), the employer will automatically make the withholding changes this spring, thereby increasing take-home pay. Taxpayers who do not have taxes withheld by an employer during the year will be able to claim this credit on their 2009 and 2010 tax returns. This tax credit is not available to all as it has income limits (phases out for individuals with adjusted gross income (AGI) in excess of $75,000, or $150,000 for married couples filing jointly). However, employers do not have access to an individual’s entire income, and so individuals with multiple jobs or married couples who file jointly and whose total AGI income is higher than the above income limits, will likely want to submit an updated W-4 form to their employer to ensure high enough withholding-or their “stimulus” when they file their 2009 and 2010 taxes will be to send more money back to the IRS…

Anyone with additional questions should contact the IRS.

Retirees

Most seniors – that is retirees who receive Social Security (regular Social Security, disability Social Security and SSI), Veterans’ or Railroad Retirement benefits – will receive a one-time $250 payment (just once, not once in 2009 and once in 2010). It will be sent automatically to these individuals, they do not need to apply for this payment. There is no income limits for this payment, so all eligible individuals are to receive it, no matter their income. As of now, SSA is saying all payments will be distributed by May.

Anyone with additional questions should contact SSA, VA, or Railroad Retirement Board (whichever agency they receive regular payments from).

Non-Social Security Retirees

When the early stimulus legislation emerged, NARFE realized that certain government retirees, including federal Civil Service Retirement System (CSRS) retirees might not receive the one-time $250 senior payments. While some CSRS retirees are eligible for Social Security based on other non-federal employment, some CSRS retirees do not receive any Social Security, meaning they would be left ineligible to receive this special one-time $250 payment. In addition to federal retirees, they are also state and local government retirees who work outside of Social Security. NARFE reached out to the Senate Finance Committee, as well as to the state and local public sector employee and retiree groups, and was successful in obtaining a refundable $250 tax credit for these individuals. Thanks to the efforts of Senators Max Baucus (MT-D) and John Kerry (MA-D), this tax credit made it into the final conference negotiations on Capitol Hill. This tax credit is to be referred to as the “Refundable Tax Credit for Certain Federal and State Pensioners, and is for tax year 2009. At this time, we are waiting for further guidance from the IRS and plan to provide all relevant information to our members over the coming months. Another reason it’s good to be a NARFE member-we’re constantly monitoring legislation and public policy from the perspective of current and former federal employees’ retirement interests, and provide specific guidance on such issues.

Nearly Useless Factoid

From MentalFloss’s “19 Unusual Sports Injuries (Including ‘Too Much GameBoy’)“, Washington Redskins Hall of Famer Turk Edwards “suffered a career-ending injury in 1940 during the pregame coin toss. When Edwards turned to return to the sideline, he caught his cleats on the turf, which wrecked his fragile knee and forced him into retirement.”

To reach me: mcausey@federalnewsradio.com

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