Social Security Recipients Can Soon Expect Stimulus Checks
If you collect Social Security, theres now a date for when you can expect your stimulus check.
Millions were told last week they might have to wait a while because the Social Security Administration didnt get the payment information to the IRS in time.
But now the IRS says payments will be issued starting this weekend, and they expect all checks to be distributed by next Wednesday.
This also includes other federal beneficiaries.
Do Ssdi And Ssi Recipients Have To File A Tax Return
People who receive monthly SSDI or SSI checks who did not file a tax return in 2018 or 2019 are not required to do anything, including filing a simple tax return, unless they have dependents. For those without minor children or other dependents, the IRS will look at Form SSA-1099 benefit statements to get the information it needs to send out the payments automatically.
Parents who have children under 17 or other dependents, who receive monthly SSDI or SSI checks, and who did not file a tax return in 2018 or 2019, however, might need to file a tax return by May 17, 2021 to claim the “Recovery Rebate Credit” for their minor children or other dependents.
Which Federal Beneficiaries Are Included
Many federal beneficiaries who filed 2019 or 2020 returns or used the online Non-Filers tool last year were issued Economic Impact Payments, if eligible, during the past three weeks, the IRS said.
The latest update applies to Social Security, Supplemental Security Income, and Railroad Retirement Board beneficiaries who didnt file a 2019 or 2020 tax return or didnt use the Non-Filers tool.
IRS tax deadline:Retirement and health contributions extended to May 17, but estimated payments still due April 15
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S You Should Take To Recover Your Stimulus Check
If you have not received your payment or have received less than the eligible amount, the veteran affairs and the social service department will refer you to the IRS.
But directly contacting the IRS operators will not help as they only have information that you can get from the Get My Payment tracking tool.
Keep the letter mailed a couple of weeks after the IRS has dispatched your check. It is a vital document that contains valuable information that will help you if your check goes missing or if you receive less than the amount you calculated.
If you do not receive your stimulus check within a stipulated time after it was dispatched by the authorities, you might need to file a payment trace.
A Fourth Round Of Stimulus Payments Was Sent To Eligible Social Security Beneficiaries In Early April
Social Security beneficiaries who didnt file a 2020 or 2019 tax return and didnt use the Non-Filers tool last year received a payment from the IRS.
More than 19 million payments, totaling more than $26 billion, went to these beneficiaries, including Social Security retirement, survivor or disability beneficiaries, according to the IRS.
The fourth batch of payments also included more than 1 million plus-up payments worth more than $2 billion for people who were eligible for additional money now that their 2020 tax returns have been processed.
‘Plus-up’ payments:Stimulus checks sent to 156M Americans, including Social Security beneficiaries
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What If The Irs Didn’t Send Me The Full Amount For The First Or Second Stimulus Payment
According to the IRS, people who receive Social Security retirement, SSDI, SSI and Railroad Retirement benefits, as well as Veterans Affairs beneficiaries, were automatically eligible for the first two stimulus payments. If you receive these federal benefits as your only form of income, you weren’t required to file a federal income tax return in 2018 or 2019. Under the CARES Act, you should have received a stimulus check automatically.
If that money didn’t arrive, it’s possible you might have had a payment garnished for child support or funds diverted to pay a specific kind of creditor, but the rules changed with the second check. However, an IRS error could also be a potential culprit or the IRS may have needed more information about your eligibility.
To receive your money now, you need to claim the additional amount as part of tax season 2020, using the Recovery Rebate Credit. Even if you don’t usually file taxes, you’ll have to file to get the funds. The deadline for filing your 2020 taxes was extended to May 17, 2021.
In some cases — if you received a letter from the IRS confirming that your payment was sent, but you never actually got the money, for instance — you may need to contact the IRS to request a payment trace.
The IRS says you can create and then check an IRS account to see more information about your eligibility around the first two stimulus payments.
Some Federal Benefit Recipients Already Have Received An Economic Impact Payment
The IRS emphasizes that federal benefit recipients in these groups who file tax returns already started to receive Economic Impact Payments earlier this month, along with other taxpayers.
Because some federal benefit recipients do not file tax returns, the IRS did not have in its tax systems the current information needed to generate the Economic Impact Payments. Last year, the IRS took the unprecedented step to receive and review data from other federal agencies and use that data to deliver payments automatically to these recipients. This action which had never occurred in previous stimulus efforts minimized risk and burdens for the American public during the pandemic. Due to regular changes in the federal benefits population, the IRS needed to receive updated information this month from other government agencies. With these critical updates, eligible federal benefit recipients who don’t normally file an income tax return will get a payment automatically in the next few weeks.
Making these automatic payments to federal beneficiaries involves a complex, multi-step process to handle recipient data from the other agencies. For the first round of Economic Impact Payments last year, recipients in these groups received payments within four to six weeks after the CARES Act was signed into law. For the American Rescue Plan signed March 11, the IRS projects that it is on track to deliver Economic Impact Payments to federal beneficiaries at the same or faster speed.
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Stimulus Checks For Dependents Va Beneficiaries
Payments to Department of Veterans Affairs beneficiaries who dont normally file taxes and who didnt use the IRS online Non-Filers tool last year started going out April 9, with a payable date of April 14. The batch of 2 million stimulus payments, worth more than $3.4 million, also went to eligible people who had not filed a tax return until this year and didnt use the IRS Non-Filers Tool last year. Some of these payments were what the IRS calls plus-up payments to those who got stimulus payments based on their 2019 returns and then filed 2020 returns.
The third round of stimulus checks, authorized by the American Rescue Plan Act, provides a maximum of $1,400 to eligible individuals, $2,800 to couples and $1,400 to dependents. Unlike the previous two rounds, theres no age limit on stimulus checks for dependents, so its possible to get a check for a dependent college-age student or an aged parent. Because dependents are claimed on tax returns, the IRS can use that information to send out stimulus payments for dependents to tax filers.
People who do not file tax returns currently, however, have no mechanism for reporting their dependents to the IRS in order to get a third-round dependent payment. Thus, the IRS recommends that all nonfilers with dependents, including many federal beneficiaries, file a 2020 tax return in order to get their stimulus payments for dependents. The deadline for filing a 2020 tax return has been extended to May 17.
Also of Interest
Do You Have To File Taxes To Get A Stimulus Check 2021
The answer is yes, and no. If you cant file your 2020 tax return by 17 May, you can ask for an automatic tax filing extension to buy time until 15 October. This will give you more time but delay any payment that you could receive. Regardless, you will have to file to get any stimulus money that might be due to you.
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How To Claim Missing Stimulus Money For Your Dependents
If you used the IRS‘ Non-Filers tool from May 5 through Aug. 15 of 2020, the IRS should’ve automatically issued the catch-up payment for your dependents in October 2020. If you received your original stimulus money by direct deposit, you should’ve gotten the catch-up payment the same way.
If you filed for your missing dependent money by Nov. 21, 2020, the payment should have arrived by the end of 2020 in the same way you received your first payment . If you missed the deadline, your check should be included on your 2020 tax return in 2021, if you file for a Recovery Rebate Credit.
To check the status of your or your dependent’s payment for the first or second payment, you can check your IRS account.
How Will Ssdi And Ssi Recipients Get Their Stimulus Checks
SSDI and SSI recipients who receive their monthly benefit payments by Direct Express debit card should receive their stimulus payments by Direct Express. This was not necessarily true for the first and second payments, but the IRS says most disability recipients should receive their third payments by Direct Express. Others might either receive a direct deposit , a paper check, or a prepaid Visa debit card.
The debit cards, issued by MetaBank, are called Economic Impact Payment cards. After activating the card, you can use your EIP card for purchases or use it to withdraw cash . You can also transfer the funds from your EIP card directly into your own bank account, after you register for online access.
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Millions Remain Waiting For Money
But nearly 30 million Social Security and Supplemental Security Income beneficiaries are waiting to get money through their Economic Impact Payments, according to a letter sent by leaders on the House Ways and Means Committee on Wednesday.
“Because SSA has inexplicably not sent the necessary payment files to the Internal Revenue Service, tens of millions of beneficiaries have yet to receive their desperately needed EIPs,” according to Chairman Richard Neal, a Massachusetts Democrat, and oversight subcommittee chairman Bill Pascrell Jr., a New Jersey Democrat, and others.
Wednesday’s letter followed another scathing commentary Monday when Democrats on the House Ways and Means Committee criticized both the commissioners of the IRS and the Social Security Administration about the handling of the latest stimulus rollout.
“Some of our most vulnerable seniors and persons with disabilities, including veterans who served our country with honor, are unable to pay for basic necessities while they wait for their overdue payments,” according to the letter signed by Neal, Pascrell Jr. and others.
The letter to IRS Commissioner Charles Rettig and Social Security Commissioner Andrew Saul expressed alarm that most Social Security, Supplemental Security Income, Railroad Retirement Board and Veterans Affairs beneficiaries who are not required to file a tax return had not yet received their payments.
More:Paper checks, prepaid Visa cards going out in mail more direct deposits coming March 24
Will The 3rd Stimulus Check Be Garnished For Child Support
Recipients of the third stimulus payments have some major protections, nevertheless. For one, the IRS cant take the money to pay for back taxes or if you owe other federal debts, the agency said late last month. The $1,400 checks also wont be garnished to pay for overdue child support, the agency added.
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Veteran Affairs Benefits Recipients May Not See Stimulus Payments Until Mid
The IRS and the Treasury Department finally have a payment date for the millions of Social Security recipients and most other federal beneficiaries who do not have to file tax returns.
The majority of their stimuluspayments will be sent electronically, with an official payment date of April 7, according to the announcement Tuesday.
In total, about 127 million payments worth $325 billion have been distributed over the past three weeks. The American Rescue Plan provides for payments of up to $1,400 for eligible individuals and $2,800 for couples filing joint returns. Dependents, regardless of age, also receive $1,400 each.
The IRS had said it would automatically send economic impact payments, which is what the agency calls the stimulus payments, to people who did not file returns but who receive Supplemental Security Income , Social Security retirement, survivor or disability , Railroad Retirement, or Veterans Affairs benefits. But many of these federal beneficiaries, including nearly 30 million Social Security and SSI benefit recipients, have been waiting for news about their payments.
I am a 69-year-old widow living on SSI widows benefits, a Florida woman said by email. I can use the extra money, and I hear on the news every day how many people in my area have received their third stimulus payment. What is going on? I can really use this money.
Heres a roundup of other announcements the IRS has made over the past several days.
What You Can Do To Take Care Of Yourself
While struggling seniors may be encouraged by these efforts, it would be wise not to bank on their success.
Larsons original bill attracted more than 200 Democrat cosponsors but still failed to pass. And a petition calling for regular $2,000 checks for all Americans has drawn more than 2.9 million signatures but little, if any, attention from lawmakers.
So if an extra $92 a month wont make a major difference in your life, take matters into your own hands and try to maximize your savings while minimizing your spending:
Cut your housing costs with a refi. Interest rates are historically low right now some 13.9 million homeowners could save an average of $293 a month with a refi, according to mortgage technology and data provider Black Knight.
Consolidate your debt. Credit cards have helped many households get through the last year, but the expensive interest will only make life harder going forward. Folding your balances into a single debt consolidation loan can cut the cost of your debt and help you pay it off faster.
Become a smarter online shopper. Deals are out there the trouble is knowing where to look. An easy way to save time, trouble and money is to download a free browser extension that will automatically search for lower prices and coupons.
Put your pennies to work. Even if you don’t have much money to spare, you can still earn impressive returns in the stock market. A popular app can help you invest your “spare change” from everyday purchases.
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Living Outside The Us
Social security beneficiaries living outside the US will receive their payments directly through the same instruments. Such payments were sent out starting the third week of April 2021.
If you are yet to get any part of the full amount of the first and second check, check if the payments were garnished by private debt collectors.
Is Everyone Getting A Second Stimulus Check
January 7, 2021: The U.S. Department of Treasury and the IRS announce that approximately eight million people are getting second stimulus checks via prepaid debit cards. January 15, 2021: Cutoff date for the $900 billion COVID-19 relief package mandates that all second stimulus payments be sent out by mid-month.
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A More Targeted Stimulus Check
On 4 October, the Senior Citizens League, a non-profit organization, wrote a letter to Congress urging members to send a $1,400 stimulus check to those receiving Social Security benefits. The contents of the letter are extremely concerning, with the writers explaining in detail the lengths seniors have had to go to to make ends meet.
It begins by highlighting that the organization has heard from thousands of seniors who have exhausted their retirement savings and started eating just one meal a day or cutting their pills in half because they cant afford their prescription drugs.
Next years Cost-of-living-adjustment or COLA is expected to be announced this week.
Based on the levels of inflation seen in July and August, the SCL forecasts the COLA could reach six percent after increasing 1.3% last year. While some may argue that the financial problems experienced by seniors will be solved with the introduction of the 2022 COLA, the SCL disagrees.
The SCL has projected that the COLA may be historic in size but doubts that it will be enough to inflation. Additionally, with a significant COLA, some beneficiaries may be moved to a higher tax bracket, meaning that they could see an increase in their Medicare Part B premiums that would completely offset any gains from the COLA.
Payment Status Not Available Message
If you aren’t having luck with the Get My Payment tool, keep checking your bank account or Direct Express card, or wait for a letter from the IRS. The IRS will mail you a letter several weeks after the agency deposits your stimulus money or mails your paper check. The letter will tell you how and when the payment was made. If you didn’t receive the money, the letter will tell you how to contact the IRS.
Some disability recipients saw this message when they logged on to the IRS’s Get My Payment tool in January or February: Payment Status #2 – Not Available. The IRS has indicated that these individuals will not receive a stimulus check by direct deposit or mail, and they will have to file a 2020 tax return to claim their Recovery Rebate Credit . See above for instructions on claiming the rebate on your tax return. These messages have now disappeared and will be replaced by information about the third payment.
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