Stimulus Payment Not Eligible Because of Rental Income?

Question

My rental income made my adjusted gross income over the limit but on FAQs on irs.gov it states rental income does not qualify as qualifiying income. All the irs people on the phone say all they can go on is my line 37 (adjusted gross income) which is too high. They contridict each other. Any ideas out there? Thanks

Answer 1

Rental income doesn't count toward the $3,000 minimum qualifying income.  However, rental income does count toward the adjusted gross income maximum.

Your adjusted gross income is too high to qualify for a stimulus payment.  Single taxpayers with AGI of $87,000 or more do not qualify for a stimulus payment.

Answer 2

No, that isn't a contradiction.  Those are two separate issues.  Qualifying for the stimulus payment has a lower limit, the $3000 in qualifying income (or having paid income tax for 2007), and an upper limit, the AGI limit.  They are separate rules.  You have to meet both, as well as a few other rules, to qualify.

Answer 3

Rental income can not, by itself, make you eligible for the rebate.  The upper income limit is based on total income.  The are two separate tests using two separate items on the tax return.