Economic Stimulus Payments

Urgent Information in Regards to Stimulus Payments for Dependents

The Treasury Department and the IRS agreed to provide $1,200 stimulus payments automatically to adult recipients of Social Security, railroad retirement benefits, Supplemental Security Income (SSI), and certain veterans’ pension and disability benefits who don’t usually file a tax return, instead of making them file one. In a press release on April 20, 2020 the IRS announced that Social Security (including Social Security Disability Insurance) recipients and railroad retirees caring for child dependents must declare them on an online IRS form by 12pm EST on April 22, 2020 so the IRS can add the extra $500 for dependents to their stimulus payment. This equates to roughly 1 million children that could miss out on the $500 stimulus payment their parents or guardians should receive, if the online IRS form is not completed before the unreasonable deadline.

 

August 18

The IRS Extends Deadline to Ensure People with Children Receive $500 Economic Impact Payments

The IRS has extended its deadline to September 30, 2020, for people to provide information to the IRS using its Non-Filer Tool at www.irs.gov/coronavirus/non-filers-enter-payment-info-here.  People should do this if they:

  •  Receive Social Security retirement, survivors, or disability benefits, or Supplemental Security Income (SSI) payments;

  • Did not file a 2019 or 2018 tax return;

  •  Have a qualifying child under age 17; and

  •   Did not already enter information in the IRS’ Non-Filer Tool for themselves and at least one child.

If someone already entered information in the IRS’ Non-Filer Tool before, and even after, the IRS’ previously announced deadlines (April 22 if receiving Social Security; May 5 if receiving SSI) they do not need to do anything.  The IRS will automatically make an EIP payment in October 2020 based on the information provided to them.

Read the IRS’ August 14 press release at www.irs.gov/newsroom/irs-takes-new-steps-to-ensure-people-with-children-receive-500-economic-impact-payments for more information.

For other Social Security information, please visit the agency’s COVID-19 web page at www.socialsecurity.gov/coronavirus/.

 

May 29

The New Jersey Council on Developmental Disabilities along with Disability Rights New Jersey, Rutgers Medical School, The Boggs Center on Developmental Disabilities, and NJ Division of Disability Services has compiled a document of frequently asked questions about COVID-19 Stimulus Payments and ABLE Accounts

 
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May 1

Social Security Administration announced an important update for Representative Payees regarding their beneficiaries’ economic impact payments  

 

April 27

Update on Economic Stimulus Payments for Dependents of Non-filers - Deadline to File Extended

People receiving Supplemental Security Income (SSI) who did not file 2018 or 2019 taxes, and have qualifying children under age 17, however, should not wait for their automatic $1,200 individual payment. They should immediately go to the IRS’s webpage  and visit the Non-Filers: Enter Your Information section to provide their information. SSI recipients who have dependent children and did not file 2018 or 2019 taxes need to act by Tuesday, May 5, in order to receive additional payments for their eligible children quickly.

If people in this group do not provide their information to the IRS soon, their payment at this time will be $1,200 only. They would then be required to file a tax year 2020 tax return to obtain the additional $500 per eligible child. See below the document provided by Social Security for Economic Impact Payments for Social Security and SSI Recipients.

 

April 21

 
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Addressing the

Limited Time Frame for Non-tax Filers to Add Dependents with Secretary of Treasury Mnuchin and Social Security Administration

Disability Rights New Jersey signed a letter about the stimulus payment deadline for Social Security beneficiaries with dependent children.

The Center on Budget and Policy Priorities posted an article explaining the issue with the stipulation for non-filers to receive the dependent stimulus payment

 

Press release reaction from Rep. Larson, Chair of the House Social Security Subcommittee after CCD letter campaign.

 
 

Frequently Asked Questions (FAQ) about CARES Stimulus Funds & Your Social Security Benefits

In response to the economic harm caused by the Coronavirus, on March 27, 2020 the U.S. government passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, Pub. L. 116-136, a $2 trillion stimulus bill.  One benefit of the CARES Act is that it gives money directly to eligible individuals.  The money is called an “economic impact payment.”


1.    Who is eligible to receive an economic impact payment?

People who collect Supplemental Security Income (SSI) or Social Security Disability benefits (SSDI) are eligible for an economic impact payment as long as the household income is below the limits listed below.   

To be eligible for a full payment, a person must have an annual income lower than:

Single with no dependents:            $75,000.00 

Married (joint income):                    $150,000.00

Single head of a household:          $112,500.00

Economic impact payments are reduced by $5.00 for every $100.00 above these amounts.  

A person will not receive any economic impact payment if their annual income is higher than:

Single with no dependents:            $99,000.00

Married (joint income):                    $198,000.00 

Single head of household:              $150,000.00 

Dependents are not eligible for a separate economic impact payment. Instead, the head of household will receive an economic impact payment on behalf of a dependent. 


2.    How much money will I receive?

Eligible people will receive a one-time payment of up to:

Single:                                               $1,200.00.

Married:                                             $2,400.00

Dependents:                                     Additional $500.00 per dependent

As described above, the payment may be reduced depending on income. To figure out how much money a person is eligible to receive, the federal government will use the information from a person’s Form SSA-1099 Social Security Benefit Statement or either an individual’s 2018 or 2019 tax return.  

A person who receives SSI or SSDI and who did not file a tax return will automatically receive up to $1200.00 but will not automatically receive any money for dependents. This is because the Internal Revenue Service (IRS) does not know whether a person has dependents without a tax return.  A person who receives SSI or SSDI must register any dependents on the IRS website:  

To add dependents, they must use the button that says “Nonfilers: Enter Payment Info Here.” The IRS website can be confusing.  It says that people who receive SSI and SSDI should not enter information using the “Non-filers” link: Do not use this application if you receive the benefits below. If you receive these benefits, we already have your information and you will receive $1,200.

 However, the IRS website also says that people who receive SSI and SSDI should use the Non-filer link to add dependents:

Special note: People in these groups who have qualifying children under age 17 can use this application to claim the $500 payment per child.

Even though it can be confusing, an SSI or SSDI recipient should use the Non-filer link to enter information about dependents. SSI and SSDI recipients should enter dependent information right away to avoid any payment delays.

 

3.    How will I receive my stimulus payment?

For people who filed tax returns in 2018 or 2019, the IRS began making automatic direct deposits to the bank accounts listed on their tax returns during the week of April 13th. If no bank account information is on file with the IRS, the IRS will mail payments to the physical addresses on the tax returns about three weeks later.  

Even if an SSI or SSDI recipient did not file a tax return, that person will receive their economic impact payment the same way they normally get SSI or SSDI benefits.  Someone who normally get benefits by direct deposit will receive the economic stimulus payment by direct deposit.  Someone who normally receives a Direct Express Debit Card by mail will receive the economic impact payment by mail.


4.    When will I receive my stimulus payment?

The IRS began making direct deposits of economic impact payments automatically beginning on April 13, 2020, and will continue to make direct deposits and mail out payments through April and into early May.  

Someone who filed a tax return in 2018 or 2019 can check the status of their payment on the IRS website:


5.    Will the economic impact payment affect my social security benefits?

No.  The CARES Act makes clear that the economic impact payment is considered a tax refund. 

·      It is considered unearned income.  

·      It will NOT affect SSI eligibility when it is received.  

·      It will NOT count as a resource for 12 months following the month of receipt. 

·      It will NOT affect Medicaid eligibility. 

·      It will NOT affect SSDI eligibility because there are no income or asset limits for SSDI.

Information for SSI recipients can be found at:

 

 6.    How can I avoid a fraud or scam regarding these benefits?  

  • The IRS will not email people to ask for information.  Some scammers send emails that look like they come from the IRS. Never open an email or click on attachments or links even if they look like they came from the IRS.

  • No one can speed up the economic impact payment. Some scammers say that they can help get the IRS to make an economic stimulus payment faster. If someone says that, that person is not telling the truth. 

  • The IRS will not ask anyone to verify or provide financial information in person, over the phone, by email or by social media. The only way to give the IRS information is by using the IRS website. 

  • No one should accept an offer from a stranger offering to enter the information into the IRS database. 

  • The IRS will not ask for bank account information over the phone or by email. If someone asks for that information they are probably trying to take money out of the bank account.

  • No one should ever sign over a check to a stranger.

  • No one should ever allow a stranger to deposit money into their bank account

  • No one should respond if they receive a check in the mail with a letter asking the person to call a number to verify personal information in order to cash it.

  • The IRS does not use the words “stimulus check” or “stimulus payment.” The term that government officials use is “economic-impact payment." People should be suspicious of anyone who contacts them about a “stimulus check” or “stimulus payment.”

New scams are invented all the time. If someone thinks that they are the target of a scam, they should report the scam to the IRS and the Treasury Inspector General:

 IRS warning about Coronavirus scams to watch out for:

 

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