More $1400 Payments Go Out Automatically After Aarp Urges Irs Ssa To Prioritize Federal Beneficiaries
by John Waggoner, AARP, Updated May 6, 2021| 0
En español | The IRS has sent a wave of pandemic stimulus checks to government retirees who normally dont file federal income taxes. Now the agency is sending payments to Veterans Affairs beneficiaries who dont normally file taxes. But the Social Security Administration says if you are a beneficiary and havent gotten your stimulus check, you need to file a 2020 tax return now to get any stimulus payments due to you.
To date, the IRS has delivered 164 million stimulus payments worth about $386 billion during the coronavirus relief mandated by the American Rescue Plan Act, which President Joe Biden signed on March 11.
Many low-income beneficiaries including recipients of Social Security retirement and disability benefits, as well as recipients of SSI benefits administered by the Social Security Administration arent required to file tax returns, and some of those payments were delayed. The IRS said it was waiting for updated information from the SSA on bank accounts and addresses of federal beneficiaries to ensure the stimulus payments reach eligible individuals.
AARP has pushed the IRS and the SSA to move more swiftly to get those checks to individuals who dont file federal income taxes.
On March 25 the SSA gave the IRS the updated information required to begin delivering stimulus checks to some 30 million federal beneficiaries still awaiting payments, Saul said.
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$600 For Ssi/ssp Recipients Is Approved In New Golden State Stimulus Package
Last week Governor Newsom and the Legislature announced an agreement on the proposed Golden State Stimulus, which will provide one-time stimulus payments of $600 to low-income Californians. As announced in the deal, eligible recipients of the $600 include:
- Californians who are recipients of SSI/SSP
- Californians who are recipients of the Cash Assistance Program for Aged, Blind and Disabled Legal Immigrants Program
- Californians who are recipients of the CalWORKS program
- California households receiving the California EITC for 2020
- California taxpayers with Individual Tax Identification Numbers who were precluded from receiving the $1,200 per person federal payments issues last spring and the more recent $600 federal payments.
Grant payments for CalWORKS households are expected by mid-April timing for the delivery of SSI/SSP and CAPI grants is currently under discussion with federal officials.
What If The Irs Sends The Incorrect Amount
The IRS has said that the third stimulus payments will be based on 2020 income. So if you receive a payment before the agency processes last year’s return but you qualify for more money based on your 2020 income, the agency will top off your stimulus payment at some point this year.
Taxpayers won’t have to do anything to get all of the money they are eligible for, except file their 2020 returns. If you qualify for less money in 2020, you will not owe any money back.
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Irs: Eips For Social Security
The IRS has processed most EIPs for Social Security beneficiaries whether they did or did not file a 2019 or 2018 tax return.
The IRS issued electronic EIPs on November 4, 2020 and paper check EIPs on November 6, 2020 to Social Security and SSI recipients who started receiving their monthly benefits on or after January 1, 2020.
How Should I Claim Missing Stimulus Money For My Dependents
If you used the IRS’ Non-Filers tool from May 5 to Aug. 15, 2020, the IRS should have automatically issued a catch-up payment for your dependents in October 2020. If you received your original stimulus money by direct deposit, you should have gotten the catch-up payment the same way. Others would have received it in the mail.
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 payment should be included on your 2020 tax return in 2021 if you file for a Recovery Rebate Credit.
To see the status of your or your dependent’s payment for the first or second payments, check your IRS account.
When Should Ssdi And Ssi Recipients Get Their Stimulus Checks
You can probably expect to receive your third stimulus payment by mid-April. Now that the IRS has Social Security’s files of its active beneficiaries, the IRS will start to release payments to all SSDI and SSI recipients on April 7. The IRS will continue making payments throughout April.
Second stimulus checks. The IRS started sending second stimulus payments to SSDI and SSI recipients in early January. If you haven’t received your second payment, you can create an account on the IRS website to get information on the first and second payments. You should be able to see where the payments were deposited or when they were mailed. The IRS says it may take three or four weeks to get the payment by mail.
Ssi And Ssdi: The Third Stimulus Payment Eligibility Requirements
As with the previous two rounds of stimulus checks, people who receive SSI and SSDI will once again automatically qualify to receive a third stimulus check, for 1,400 dollars.
For the first two rounds, those individuals were eligible so long as they had a Social Security number and weren’t claimed as a dependent on someone else’s tax return, and so long as their household income didn’t exceed the threshold set. The new bill that authorized the third check expands stimulus payment eligibility to dependents of all ages. It also increases the amount set aside for those dependents to 1,400 dollars each. Those receiving Railroad Retirement and Veterans Affairs benefits also automatically qualify for a payment, as they did in the first and second round, the IRS said.
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When Can Social Security Recipients Expect The Stimulus Check
Even though there has been a delay getting the third payments to around 30 million people who receive benefits from Social Security, Supplemental Security Income, the Railroad Retirement Board and Veterans Affairs, because the Social Security Administration did not send the IRS the necessary paperwork.
But the IRS should have received the information it needed to send the payments last Thursday and announced that many Social Security beneficiaries and many others who don’t normally file taxes will start getting their payments by April 7.
Residents can check the status of their payment using the Get My Payment tool on the IRS website.
When Will Social Security Recipients Ssi And Ssdi Receive Their Stimulus Check
The Social Security Administration transmitted payment information for nearly 30 million to the IRS to get stimulus checks out the door after several Congressional leaders said they were alarmed at the lack of payments.
Many non-filers who receive benefits from SSI and the Railroad Retirement Board have also not received their checks and are part of the April 7 rollout. Those beneficiaries of Veterans Affairs, however, are still going to have to wait for their checks, the IRS said.
Already about 90 million people have received their third wave of stimulus checks, according to a joint letter to the heads of the Internal Revenue Service and Social Security Administration.
You can check the status of your payment using the IRS Get My Payment Tool.
Biden Is Proposing An Extra $200 Bump
Wall Street rebounds from last weeks rout, with Dow up more than 350 points as investors anticipate a Biden presidency that will produce a more robust stimulus.
According to CNBC, Biden has said he plans to increase Social Security payments by $200 per month, which would affect retirees as well as veterans and Supplemental Security Income recipients.
The additional benefit was first proposed by two Democratic senators, Oregons Ron Wyden and Massachusetts Elizabeth Warren. In their , the two wrote, We are pushing to include in Congress next stimulus package a $200 increase in the monthly benefit for all Social Security, Veterans, and Supplemental Security Income beneficiaries through the end of 2021. The two estimated that such a supplement would add $4,000 in the pockets of seniors and people with disabilities who have earned this benefit by contributing to Social Security with every paycheck and improve the lives of millions of Americans and help our economy stabilize and recover.
The senators also noted that many retired seniors rely wholly on those payments for income and that beneficiaries have received a supplemental payment in times of economic strife before in the wake of the 2008 economic crisis, the 2009 American Recovery and Reinvestment Act provided Social Security, SSI and other benefit recipients such as veterans with a one-time payment of $250.
Will Disability Checks Come Early This Month
If your birthday is from the 1st to the 10th, you will receive your payment on the second Wednesday of each month. If you were born between the 11th and the 20th, your benefits will arrive on the third Wednesday of the month. If your payment date falls on a holiday, the SSA will usually send the check early.
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.
Child Tax Credit Increased For 2021
For this year only, the child tax credit has increased from $2,000 per child to $3,000 per child. Parents of children under age 6 would be eligible for an even larger $3,600 total credit. The plan also includes $3,000 benefits to the parents of 17-year-olds who meet plan qualifications. Previously children had to be 16 or younger.
The child tax credit has increased from $2,000 per child to $3,000 per child. Parents of children under age 6 would be eligible for an even larger $3,600 total credit.
The plan also includes $3,000 benefits to the parents of 17-year-olds who meet plan qualifications. Previously children had to be 16 or younger. The credit is also fully refundable.
For the standard $2,000 child tax credit, the phase-out starts at $400,000 if filing jointly. According to the relief plan signed earlier this month, the additional credit will phase out for single filers at $75,000 and joint filers at $150,000.
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Social Security Inflation And Stimulus Checks
TSCL is specifically worried about inflation’s impact on older people. That may sound like an arbitrary reason to request targeted stimulus checks. After all, inflation is affecting everyone right now, with strained supply chains bringing higher-than-usual prices on everything from cars to pet food.
But inflation puts a strain on older folks in one way that it doesnt necessarily affect others through Social Security benefits.
Next year, the Social Security Administration is expected to issue the largest cost of living adjustment in nearly 40 years. By TSCL’s estimate, that adjustment could be as high as 6.2%.
Thats good news, considering inflation is currently at 5.4%. But higher COLA for Social Security benefits could coincide with higher costs for Medicare, which threaten to eat up any extra cash. It also counts as income, so the increase could “cause some people to see benefits like SNAP or rental subsidies trimmed if their income increases more than the limit,” says Mary Johnson, a Social Security and Medicare policy analyst at The Senior Citizens League.
Thats concerning for seniors who are on limited incomes or depend on food stamps and other public programs. Social Security is already nowhere near enough for retirees to live on. Some critics say an even higher COLA is needed next year to boost retirees incomes.
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.
What Should I Know If I’m Not Currently Living In The Us
If you’re a Social Security beneficiary with a foreign address whose monthly benefit is deposited in a foreign bank account, you should receive your third stimulus payment through either direct deposit, Direct Express card or a check in the mail, according to the SSA . The IRS began sending out payments to this group through direct deposit and Direct Express card on April 21, and began sending paper checks in the mail for this group on April 23
If you live abroad but receive your monthly benefits through a US bank, you should have received your first two payments by direct deposit to that account. If you still haven’t gotten your money, it will have to be claimed as part of a tax return. Find out everything you need to know about stimulus checks, citizenship and living abroad here.
Stimulus Checks For Ssi Ssdi Recipients: When And How Your $1400 Will Come
Here are the new qualification rules for SSI and SSDI recipients and their dependents
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- Third Stimulus Check.Haven’t received your third stimulus check yet? Here’s what you need to do
As the IRS delays the latest tax filing date to May 17, it continues to end out the 1,400 dollar stimulus check to families with a direct deposit on file but this doesn’t apply to recipients of Supplemental Security Income or Social Security Disability Insurance benefits. If you are a recipient of either one of the benefits you may not receive your check during the first wave.
The new eligibility criteria that apply to the third wave of stimulus payments could assist you in obtaining a bigger check this time around. If you stopped or started receiving SSI or SSDI in 2019 or 2020, your situation could become complicated now that it’s tax season.
Some Social Security recipients in urgent need of financial assistance say they’re still waiting for the emergency relief payment.
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.
How Long Does It Take To Get Your Stimulus Check In The Mail
The problem may sit with the Social Security Administration , according to a Wednesday letter from the House Ways and Means Committee to the benefits agency. The letter states that 30 million Social Security recipients are still waiting for their checks and that the IRS had asked the SSA to send its payment files two weeks before the checks were signed into law by President Joe Biden on March 11.
“We write you today regarding the nearly 30 million Social Security and Supplemental Security Income beneficiaries who are still awaiting their economic impact payments ,” it read.
“We understand that these beneficiaries are waiting because the Social Security Administration has not sent the necessary payment files to the Internal Revenue Service .
“We are aware that the IRS asked SSA to start sending payment files two weeks before the American Rescue Plan became law on March 11, 2021.
“As of today, SSA still has not provided the IRS with the payment files that are needed to issue EIPs to these struggling Americans. We demand that you immediately provide the IRS with this information by tomorrow, March 25, 2021.”
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