Most Social Security recipients will be paid automatically, but
there are some big exceptions.
Matthew
Frankel, CFP (TMFMathGuy) Apr 13, 2020 at 7:12AM Author
Bio
The U.S. Treasury Department recently announced
that Social Security beneficiaries who aren't typically required to file a tax
return won't need to take any special action to get a $1,200 stimulus payment.
Because of this, most Social Security beneficiaries don't have
to take any special action -- the payment will be automatically paid in the
same manner as their Social Security benefits.
On the other hand, there are some Social Security recipients who may still
need to take action, especially if they want to maximize the amount stimulus
check. Here's a quick rundown of the latest guidance from the Social Security
Administration (SSA) so you can decide if you need to file some information
with the IRS.
Who needs to take
action?
The Treasury recently launched a Web portal that
allows people who don't typically file tax returns to register and provide
payment account information for their Economic Impact Payments (the official
name for the stimulus checks). According to the Treasury's,
Social Security beneficiaries don't need to use it -- even if they haven't
filed tax returns for several years.
However, Social Security Commissioner Andrew
Saul released new guidance that states that some Social
Security beneficiaries should use the new non-filer tool, which can be found on
the IRS's website, to enter
their information.
One specific group that should register their
information are Social Security beneficiaries who have dependent children under
the age of 17. Simply put, if a Social Security beneficiary didn't file a tax
return in 2018 or 2019, the IRS won't know they have dependents -- and each
dependent under 17 would increase their stimulus payment by $500. In other
words, a Social Security beneficiary with a 16-year-old dependent child could
receive $1,700 instead of $1,200 by taking a few minutes to enter their
information.
Another group that should head to the IRS's
Economic Impact Payments page are Supplemental Security Income (SSI)
recipients, especially those with dependents. Those on the
other disability income program, SSDI, don't need to take action unless they
have qualified dependents and haven't filed a recent tax return.
Finally, any Social Security
beneficiaries who started receiving benefits after Jan. 1, 2020, and haven't
filed tax returns in 2018 or 2019 need to use the IRS tool to provide their
information. This applies even if there are no dependent children to report.
Make sure you get
your full stimulus payment
Just to be clear, even if you don't do this, you
can still get your full Economic Impact Payment. It just might not arrive
anytime soon. In other words, if you're a Social Security beneficiary who
hasn't filed a tax return in 2018 or 2019 and you don't let
the IRS know about your dependents soon, you'll have to wait a while before you
can get the additional $500 payment for each child.
To sum it up, there are three groups who should
head over to the IRS's Economic Impact Payments page and register their information
ASAP:
·
Social Security
beneficiaries (including retirement, survivors, and SSDI) who have dependent
children under 17 and haven't filed tax returns in 2018 or 2019.
·
SSI recipients,
especially those with qualifying dependents.
·
New Social Security
beneficiaries who didn't file tax returns in 2018 or 2019, regardless of
whether they have dependents.
If you fit into one of these three categories,
it's in your financial best interest to head over to the IRS Economic Impact Payments page and provide
your information as soon as possible.
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