We have another update on the stimulus checks for Americans as part of the Coronavirus Aid, Relief, and. Economic Security Act'' or the ''CARES” Act. As we reported in a previous blog, the checks will begin to arrive during the week of April 13th. There does appear to be a change in the timetable, however, at least according to Michigan’s United States Representative Debbie Dingell.
In a press release distributed by her office, it reports that “beginning on Monday, April 13th, the IRS is expected to make approximately 60 million payments to Americans through direct deposit for people who used direct deposit on their 2018 or 2019 tax returns. This will include Social Security beneficiaries who filed federal tax returns that included direct deposit information.”
The release continued, “Shortly after that (hopefully within 10 days) after the first round of payments are made in mid-April, the IRS plans to make the second round of payments. These payments will be made to Social Security beneficiaries who did not file tax returns in 2018 or 2019 and receive their Social Security benefits via direct deposit. The estimates are that nearly 99 percent of Social Security beneficiaries who do not file a return receive their benefits through direct deposit.”
So we will just need to wait and see if this is indeed correct. However, there does seem to be some confusion, even at this late date, as to how the IRS will handle those receiving Supplemental Security Income (SSI), which is not a program of the Social Security Administration. According to several sources, the IRS has yet to issue any guidance on how they will receive their payments. These sources state that they will receive the money but where it will come from and how it will be delivered is still in flux. As soon as we have a definitive answer, we will let you know.
And today, the IRS rolled out its portal that allows those who did not file an income tax return in 2019 to apply for the stimulus payment by submitting a routing number and account number to the IRS. If you don’t have a checking account, a paper check will be issued but at a later date (see our previous blog). We have a link to that portal below.
So who should use this portal?
Those who did not file a tax return in 2018 or 2019 because they were under the income limits required for filing. This may also include single filers who made under 12,200 and married couples who made less than 24,400 in 2019.
Those who receive veteran’s disability checks, a pension or survivor benefits from the Department of Veteran Affairs, and they did not file a tax return in 2018 or 2019. Although the IRS has stated that they are working on delivering the check using their current direct deposit plan, they have not yet gotten this into place.
If you receive Social Security, Social Security Disability Insurance (SSDI), or Railroad Retirement income with qualifying dependents. Although you will get your payment automatically using the current delivery system you have, in order to get the $500 for qualifying children under 17, you need to go to the portal and apply for the payment at $500 per child.
Who doesn’t need to use the portal?
If you don’t qualify for a stimulus check because you earn too much money.
If you receive Social Security, Social Security Disability Insurance (SSDI), or Railroad Retirement benefits and you don’t have a qualifying dependent. In these cases, the money will come to you automatically.
If you are a student or a dependent. If someone else claimed you on their tax return, you are not eligible.
If you are a fiduciary client of Connelly Law Offices, Ltd. and have any questions, please call us and we will do our best to answer your questions regarding the stimulus money. If there are any changes, we will keep you informed. As you are probably used to by now, things seem to change by the hour, so as we said in our previous blog, stay tuned.