May 5 Deadline for Some VA, SSI Recipients

VA and SSI recipients with eligible children need to act by May 5.

Supplemental Security Income and Department of Veterans Affairs beneficiaries must act by May 5 if they didn’t file a tax return in 2018 or 2019 and have eligible dependents so they can quickly receive the full amount of their Economic Impact Payment.

Their $1,200 payments will be issued soon and, in order to add the $500 per eligible child amount to these payments, the IRS needs the dependent information before the payments are issued. Otherwise, their payment at this time will be $1,200, and by law, the additional $500 per eligible child amount will be paid in association with a return filing for tax year 2020.

They will still get the $1,200 automatically. However, to receive the “Plus $500” for each eligible child sooner rather than later, they must act quickly by using the Non-Filers tool on IRS.gov.

Per the IRS, the $1,200 automatic payments should begin arriving next week for those receiving Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits, Supplemental Security Income (SSI), and VA Compensation and Pension (C&P) beneficiaries who didn’t file a tax return in the last two years. No action is needed by these groups; they will automatically receive their $1,200 payment.

VA and SSI recipients who have a qualifying child and didn’t file a 2018 or 2019 tax return have a limited window to register to have $500 per eligible child added automatically to their soon-to-be-received $1,200 Economic Impact Payment. Using the special Non-Filers tool on IRS.gov by May 5 may help this group put all of their eligible Economic Income Payment into a single payment. The Non-Filers tool is available in English and Spanish.

Spread the word to any family members or friends who may be in this group!

SSA/Railroad Retirees: Economic Impact Payments Arriving Next Week

For recipients of Social Security retirement, survivors or disability insurance benefits (SSDI), and Railroad Retirement Benefits (RRB), automatic payments of $1,200 are scheduled to begin arriving next week. No action is needed on their part. This includes people who don’t normally file a tax return.

For Social Security/RRB beneficiaries who don’t normally file a tax return, have a child, and registered using the IRS Non-Filers tool by the April 22 deadline, more payments are scheduled to begin arriving next week as well.

SSA/RRB beneficiaries who don’t normally file a tax return and have a child but did not register on the IRS Non-Filers tool by April 22 will still receive their automatic $1,200 beginning next week. Given the deadline has passed, by law, the additional $500 per eligible child amount would be paid in association with filing a tax return for 2020. This group can no longer use the Non-Filers tool to add eligible children.

Note – Direct Express Account Holders:

You may use the Non-Filers tool, but you cannot receive your and your children’s payment on your Direct Express account. You may only select a bank account for direct deposit or leave bank information blank and receive the money by mail.

No Action Needed By Most Taxpayers

The Treasury Department will make these automatic payments to SSA, SSI, RRB, and VA recipients. Recipients will generally receive the automatic $1,200 payments by direct deposit, Direct Express debit card, or by paper check, just as they would normally receive their benefits.

For more information related to veterans and their beneficiaries who receive Compensation and Pension (C&P) benefit payments from VA, please visit VA.gov.

Others Who Should Use the Non-Filers Tool

This new tool is designed for people who did not file a tax return for 2018 or 2019 and are not required to do so under the law. Usually, this means couples with incomes below $24,400 and singles with incomes below $12,200 in 2019.

Those Who Should NOT Use the Non-Filers Tool

Anyone who already filed either a 2018 or 2019 return does not qualify to use this tool. Similarly, anyone who needs to file either a 2018 or 2019 return should not use this tool. Instead, they should file their tax returns. This includes anyone who files a return to claim various tax benefits, such as the Earned Income Tax Credit for low-and moderate-income workers and working families.

The IRS also has seen instances where people required to file a Form 1040 for 2019 are trying to use the Non-Filers tool. The IRS urges people with a filing requirement to avoid complications later with the IRS and file properly without using the Non-Filer tool.

Students and others who file a return only to receive a refund of withheld taxes should also not use this tool. In addition, students and others claimed as dependents on someone else’s tax return do not qualify for an Economic Impact Payment and are not eligible to use the Non-Filers tool.

Update: Enhancements to Get My Payment Tool

The IRS has made enhancements to the Get My Payment tool in an effort to deliver an improved and smoother experience for Americans eligible to receive Economic Impact Payments.

The enhancements, which started last week and continued through the weekend, adjusted several items related to the online tool. The additional changes will help taxpayers with new or expanded information and access to adding direct deposit information.

The tool is solely for use by individuals or those legally authorized by the individual to access their information. Unauthorized use is prohibited and subject to criminal and civil penalties. The tool is designed for:

  • Taxpayers to track the status of their payment

This feature will show taxpayers the scheduled delivery date by direct deposit or mail and the last four digits of the bank account being used if the IRS has direct deposit information. The taxpayer will need to enter basic information including:

    • Social Security number
    • Date of birth
    • Mailing address used on their tax return
  • Taxpayers needing to add their bank account information

To speed receipt of their payment, taxpayers will also need to provide the following additional information:

    • Adjusted Gross Income from their most recent tax return submitted, either 2019 or 2018
    • The refund or amount owed from their latest filed tax return
    • Bank account type, account, and routing numbers

Get My Payment cannot update bank account information after an Economic Impact Payment has been scheduled for delivery. To help protect against potential fraud, the tool also does not allow people to change bank account information already on file with the IRS.

Watch Out For Scams!

People should watch out for scams using email, phone calls, or texts related to the payments. Be careful and cautious:

The IRS will not send unsolicited electronic communications asking people to open attachments, visit a website, or share personal or financial information.

Stay safe. Stay well. Stay home.

Bayshore CPA’s, P.A. are your local Certified Public Accountants

and Tax Resolution Specialists conveniently located

in Mooresville, North Carolina

Image: Illustration 155534997 © Valeriy Kaplun – Dreamstime.com (May 5); Photo 177520974 © Photovs – Dreamstime.com (U.S. Stimulus Economic Checks)