Million Americans Who Receive Social Security And Other Federal Benefits May Finally See Their $1400 Stimulus Payment Coming Their Way Who Are They
The Social Security Administration sent the Internal Revenue Service missing payment files that have been delaying Economic Impact Paymentsfor 30 million Americans on Thursday. It will now be up to the IRS to send out the $1,400 payments per Social Security recipient and their dependents.
On Wednesday, the House Ways and Means Committee sent a letterto SSA Commissioner Andrew Saul giving him 24 hours to send the files to free up the stimulus payments. The following day the agency released the files to the IRS and in a statement Saul said At each turn over the last 12 months, immediate delivery of EIPs has been, and remains, a top priority for this agency. SSAs public service mission is squarely focused on many of those who are most economically-vulnerable in our society and we owe it to our beneficiaries to ensure they receive their EIPs right away.
Economic Recovery For Some
In the first quarter of 2021, the U.S. economy grew at an annualized rate of 6.4 percent, faster than the 4.3 percent rate from the fourth quarter of 2020. The Conference Board forecasts 9.0 percent growth in the second quarter and continued growth through the rest of the year. In the short-term, that rise could reach into the double-digits. The countrys gross domestic product , an estimate of economic activity across the U.S., has returned to pre-pandemic levels.
Broad segments of the workforce have endured little economic hardship during the pandemic. Many jobs accomplished at a desk in an office are just as easily accomplished at a desk in someones home. And with fewer places to spend money during the pandemic, plus three stimulus checks, many Americans saved more than they might otherwise. The personal saving rate ballooned to 33.7 percent in April of 2020 and has remained well above pre-pandemic levels ever since. In May of 2021, it sat at 12.4 percent, still above the 8.3 percent from February of 2020, the month before the pandemic. On Face the Nation, Bank of America CEO Brian Moynihan recently estimated that its customers have not spent 65-70 percent of their last two stimulus checks. With many households sitting on a lot more money than they had in early 2020, pent-up demand is helping to drive the broader economy during the rebound.
Around 90 Million Third Stimulus Payments Issued
The IRS sent around 90 millionthird stimulus payments on Wednesday.
“The first batch of payments primarily went to eligible taxpayers who provided direct deposit information on their 2019 or 2020 returns, including people who don’t typically file a return but who successfully used the Non-Filers tool on IRS.gov last year.
“Additional batches and payments will be sent in the coming weeks by direct deposit and through the mail as a check or debit card. The vast majority of all Economic Impact Payments will be issued by direct deposit,” the federal body said Wednesday.
The IRS noted last Friday: “Because these payments are automatic for most eligible people, contacting either financial institutions or the IRS on payment timing will not speed up their arrival.”
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Will The Stimulus Money Affect My Eligibility For Disability Benefits
For SSI eligibility purposes, the stimulus check won’t count as income to you, and you don’t need to report it as income to the Social Security Administration. Plus, it’s not taxable. In addition, for SSI, the stimulus money won’t count as a resource unless you still have all or part of it 12 months after receiving it.
For SSDI eligibility purposes, income and assets don’t matter, so the stimulus check will have no effect.
What If My Stimulus Check Or Was Lost Destroyed Or Stolen
If the Get My Payment tool says your payment was direct-deposited, but the money doesn’t show in your bank account after five days, first check with your bank. If the bank says it hasn’t received a payment, you can request a payment trace.
To request a payment trace, call 800-919-9835 or fill out IRS Form 3911, Taxpayer Statement Regarding Refund.
Similarly, if the Get My Payment tool says your payment was mailed and you haven’t received it, you can request a payment trace. The IRS will research what happened to your check if the check wasn’t cashed, you will need to claim the Recovery Rebate Credit on your 2020 tax return. If the IRS finds that the check was cashed, you’ll receive a claim package from the Treasury Department with a copy of the cashed check and instructions on filing a claim.
If you received your stimulus check by mail but then it was destroyed or stolen, make sure you request a payment trace. If you claim the Recovery Rebate Credit on your 2020 tax return without filing a payment trace, it will be denied, because the IRS will think that you already received the money.
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Check The Get My Payment Tool
The IRS has uploaded data for your third stimulus payment into a tool on its website called Get My Payment. Some people are still seeing a message that says either the IRS doesn’t have enough information yet or that they aren’t eligible for the payment. If you get this message, it doesn’t necessarily mean you aren’t eligible. If your payment status has not been updated yet, it may be updated this coming weekend.
Once your information is updated, you’ll be able to see the date you can expect to receive your stimulus payment, or the date it was deposited or mailed. You should also be able to see whether your money was direct deposited or whether you’ll be receiving the payment by mail.
Will The Irs Tax My Third Stimulus Check
The IRS does not consider stimulus checks to be taxable income. This means that you do not have to report the money on your federal income tax return, or pay income taxes on your stimulus check.
You should also note, that if you owe taxes, you could still qualify to get a stimulus payment because the IRS does not use it to offset federal or state tax debts like it normally does with tax refunds.
For private debts, however, the American Bankers Association has pointed out a loophole in the new stimulus plan where banks and other financial services providers will be legally required to comply with court ordered garnishments. The association says that without legislation to shield your third stimulus payment, creditors or collectors can take it to pay off existing debt.
As a reference, the 2020 COVID-Related Tax Relief Act did shield stimulus payments from private debt collection: The Advance payments are generally not subject to administrative offset for past due federal or state debts. In addition, the payments are protected from bank garnishment or levy by private creditors or debt collectors.
But while your stimulus money could be taken to pay for private debt, the new offsetting rules prevent the IRS from deducting overdue child support from eligible recipients. You should keep in mind, however, that the IRS intercepted or reduced payment from the first round of stimulus checks for past-due child support.
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Third Stimulus: Social Security Beneficiaries Receiving Checks After Holdup But Many Veterans Must Wait Until Mid
Millions of retirees and other low-income recipients of federal benefits are starting to see COVID-19 stimulus checks after weeks of administrative holdups, but many veterans still face at least another week of waiting.
The Internal Revenue Service says those on Veterans Affairs disability or pension benefits who do not typically file tax returns may receive their $1,400 stimulus checks by mid-April.
The IRS continues to review data received for Veterans Affairs benefit recipients and expects to determine a payment date and provide more details soon, the agency said in recent news release.
VA beneficiaries are among the group of vulnerable Americans who have experienced an inexplicable delay in stimulus payments approved as part of President Joe Bidens $1.9 trillion American Rescue Plan, according to lawmakers on the House Ways and Means Committee chaired by Rep. Richard Neal.
In late March, the lawmakers said theyd received reports of delays in critical assistance … for millions of Americans in need, including Social Security, Supplemental Security Income , Railroad Retirement Board and VA beneficiaries. In the two previous stimulus rounds in 2020, the IRS, Social Security Administration and VA worked together to ensure prompt payments, the lawmakers said.
While the IRS reviews VA data, payment details remain unavailable on the agencys Get My Payment tool.
When Will Ssdi Recipients Get The Third Stimulus Check
Those who receive federal benefits through Social Security Disability Insurance via Direct Express can expect their third stimulus payments “within the next few weeks.”
But, as of Monday, the Internal Revenue Service has yet to announce a stimulus payment date for all recipients of SSDI or Supplemental Security Income .
An IRS spokesperson told Newsweek they were “checking on that,” when asked for an update on Thursday, and has not yet replied to further requests since then.
Direct Express said last week that it does “not have specific information on timing,” while the Social Security Administration has issued no update since March 12.
Below, are the latest updates to be issued by officials at the time of publication.
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The Irs Is Finally Sending Third Stimulus Check Payments For Social Security And Other Federal Beneficiaries Who Didn’t File A 2019 Or 2020 Tax Return
Millions of seniors who didn’t file a 2019 or 2020 tax return have already started receiving their third stimulus checks. After receiving data from the Social Security Administration in late March, the IRS was able to start processing third stimulus payments for approximately 30 million seniors. These people will generally get their stimulus payment in the same way they get their regular Social Security benefits. Since most of these payments will be paid electronically through direct deposits or to existing Direct Express debit cards, the funds have already been delivered to many of these seniors. For those still waiting, more payments will arrive this week and in the following weeks.
Third stimulus payments are generally based on information found on your 2019 or 2020 tax return. That’s why many people who receive Social Security benefits and filed a 2019 or 2020 return, or who used the IRS’s Non-Filers tool last year, received a third stimulus check in March. However, since some Social Security recipients don’t file tax returns, the IRS didn’t have the necessary information in its computer systems to process third-round stimulus payments for them. That’s why the tax agency needed data from the SSA to send out checks to seniors who haven’t file a recent tax return.
Getting The Correct Figure Of Your Third Stimulus Check
Certain changes in your qualification for the stimulus payments might get you a bigger payment this time. This is true if you are a member of all families with mixed-citizenship, or if you claim dependents.
If you have missed out on the last two stimulus checks, you can also apply for and get them if you file returns before the May 17 deadline for tax filing. You also need to know regarding a potential fourth payment.
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Stimulus Check Arrival Dates For Ssi Ssdi Beneficiaries And Veterans
Federal beneficiaries who file a 2019 or 2020 tax return or used the Non-Filers tool in 2020 may have already received a stimulus payment or could get one in a future batch of checks being sent out by the government.
For almost everyone else, your payment could arrive on April 7 through direct deposit or on your Direct Express card. However, veterans who don’t file taxes ordinarily will have to wait until mid-April, according to the IRS. People who have already filed a 2020 tax return this year to claim missing stimulus money may find that the IRS will likely use this information instead of your 2019 details if it has processed your latest return. Some people may need to file a 2020 tax return, even if they don’t usually file, so the IRS has all the information needed to send payments to cover your eligible dependents.
What Social Safety Administration Says
The Social Safety Administration has but to launch up to date recommendation on third stimulus funds.
The SSA said on March 12: The IRS is reviewing the tax provisions of the American Rescue Plan Act of 2021, signed into regulation on March 11, 2021. Well add useful Q& As to this web page quickly, like we did for every of the primary two rounds of EIPs.
When you nonetheless subscribe to obtain updates from us once we replace our EIP1 and EIP2 pages, well mechanically add you to a subscription listing for this new EIP web page, the SSA added.
A spokesperson for NACHA informed Newsweek: Sadly, it seems we do not know sufficient but . The one data we got is that SSA guidelines require that laws be handed earlier than theyll work to seek out eligibility and cost data.
Newsweek has contacted the SSA, IRS and the Bureau of the Fiscal Service for remark.
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What Social Security Administration Says
The Social Security Administration has yet to release updated advice on third stimulus payments.
The SSA stated on March 12: “The IRS is reviewing the tax provisions of the American Rescue Plan Act of 2021, signed into law on March 11, 2021. We will add helpful Q& As to this page soon, like we did for each of the first two rounds of EIPs.
“If you still subscribe to receive updates from us when we update our EIP1 and EIP2 pages, we will automatically add you to a subscription list for this new EIP page,” the SSA added.
A spokesperson for NACHA told Newsweek: “Unfortunately, it appears we don’t know enough yet . The only information we were given is that SSA rules require that legislation be passed before they can work to find eligibility and payment information.”
Newsweek has contacted the SSA, IRS and the Bureau of the Fiscal Service for comment.
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What Direct Express Says
In a tweet on March 16, Direct Express said: “While we do not have specific information on timing, most people will receive their stimulus payments within the next few weeks.”
Video: Timeline for third stimulus check for social security recipients
The company’s latest tweet on Friday provided no further update and only said the IRS is issuing stimulus payments to “eligible recipients over the next few weeks.”
The tweet directed users to the Get My Payment portal of the IRS website “for the most current information on individual stimulus payments.”
Those who currently don’t have a Direct Express card cannot sign up for one now to receive their stimulus payments, Direct Express advised on March 15.
Third stimulus funds sent to Direct Express card accounts that were recently closed “will be returned and the IRS will reissue the payment,” the company said.
Stimulus Payments And Social Security Disability
A stimulus payment does not affect your eligibility for SSDI or SSI. As a general rule, SSDI eligibility is not affected by the money you receive from sources other than employment or self-employment, so stimulus money will not cause you to lose benefits received through SSDI. If you have questions about your benefits, get in touch with an SSDI lawyer at MJ Ellis Disability Law.
If you receive SSI benefits, the Social Security Administration does not treat stimulus payments as income. It also will not count it as a resource for 12 months, so you are free to spend it as you wish. Talk to your SSI lawyer for more information about stimulus money and your benefits.
How Will Child Tax Credit Payments Affect Your SSI And SSDI Benefits?
The 2021 Child Tax Credit payments represent a refund of taxes. They are not, according to Social Security, income that would affect your Social Security disability benefits through either SSI or SSDI. If you receive benefits through SSI, you have 12 months to spend the credit payments before what remains will be counted as a resource.
Speak With A Disability Lawyer When Questions Arise About Benefits
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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.