TSCPA News

Updated Information: IRS Issues Alert for SSI, VA Recipients with Dependents to Act by May 5 to Quickly Add Money to Automatic Economic Impact Payment

April 27, 2020

Updated April 27: The IRS has issued a special alert for Supplemental Security Income (SSI) and Department of Veterans Affairs (VA) beneficiaries to act by May 5 if they did not file a tax return in 2018 or 2019 and have dependents so they can quickly receive the full amount of their Economic Impact Payment.

In order to add the $500 per eligible child amount to their automatic $1,200 Economic Impact Payment, the IRS needs the dependent information before the payments are issued. Otherwise, their payment at this time will be $1,200 and the additional $500 per eligible child amount will be paid in association with a return filing for tax year 2020. Visit the special non-filer tool by May 5 to put all eligible Economic Income Payment into a single payment.

The IRS has issued a special alert for several groups of federal benefit recipients to act by noon Eastern time on Wednesday, April 22 if they did not file a tax return in 2018 or 2019 and have dependents in order to quickly receive the full amount of their Economic Impact Payment.

The $1,200 automatic payments will be starting soon for those receiving Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits, Supplemental Security Income (SSI) and Veterans Affairs beneficiaries who did not file a tax return in the last two years. No action is needed by these groups; they will automatically receive their $1,200 payment.

For those benefit recipients with children who are not required to file a tax return, an extra step is needed to quickly add $500 per eligible child onto their automatic payment of $1,200.

For people in these groups who have a qualifying child and did not file a 2018 or 2019 tax return, they have a limited window to register to have $500 per eligible child added automatically to their $1,200 Economic Impact Payment. A quick trip to a special non-filer tool on IRS.gov by noon Eastern time on Wednesday, April 22 for some of these groups may help put all of their eligible Economic Income Payment into a single payment.
 
For certain SSA/RRB beneficiaries who do not normally file a tax return and do not register with the IRS by April 22, they will still be eligible to receive the separate payment of $500 per qualifying child. For those who miss the April 22 deadline, their payment at this time will be $1,200 and the additional $500 per eligible child amount would be paid in association with a return filing for tax year 2020. They will not be eligible to use the Non-Filer tool to add eligible children once their $1,200 payment has been issued.
 
SSI and VA beneficiaries have some additional time beyond April 22 to add their children since their $1,200 automatic payments will be made at a later date. SSI recipients will receive their automatic payments in early May, and the VA payment schedule for beneficiaries who receive Compensation and Pension (C&P) benefit payments is still being determined. If they have children and are not required to file a tax return, both groups are urged to use the Non-Filer tool as soon as possible. Once their $1,200 payment has been issued, they will not be eligible to use the Non-Filer tool to add eligible children. Their payment will be $1,200 and the additional $500 per eligible child amount would be paid in association with a return filing for tax year 2020.
  
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.

To help spread the word to recipients with children about this special “Plus $500 Push,” the IRS has additional material available on a special partners page that can be shared with friends, family members and community groups. This effort will focus on the initial April 22 deadline and continue this spring to reach as many people as possible since the child payments will continue to be made in the weeks and months ahead.