On April 1, 2020, the U.S. Department of the Treasury and the Internal Revenue Service announced that Social Security beneficiaries who are not typically required to file tax returns will not need to file an abbreviated tax return to receive an Economic Impact Payment. Instead, payments will be automatically deposited into their bank accounts. The announcement reflects a complete turn-about from Treasury’s prior position that the direct stimulus payments would be sent only to those who have a tax return on file.
Earlier directives noted that each person entitled to an Economic Impact Payment under the Coronavirus Aid, Relief and Economic Security (CARES) Act would require the filing of a tax return for either 2018 or 2019. For Senior citizens and others that did not earn sufficient taxable income in either of those years to require a federal income tax filing due to the standard deduction and other available tax attributes, a return would have been required to be filed now in order to ensure the payment was received.
Now, the Internal Revenue Service has indicated that it will use the information on the Form SSA-1099 and Form RRB-1099 to generate $1,200 Economic Impact Payments to Social Security recipients who did not file tax returns in 2018 or 2019. Recipients will receive these payments as a direct deposit or by paper check, just as they would normally receive their benefits.
Click here for more information from the IRS about Economic Impact Payments.
If you have any comments or questions, contact Bob Grossman or Don Johnston or your GYF Executive at 412-338-9300.
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