Social Security Recipients To Automatically Receive Economic Impact Payments

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After a few days of uncertainty, it was announced today that Social Security recipients will not have to file anything to receive their $1200 Economic Impact Payments. This pertains to those people on Social Security who no longer are required to file federal tax returns each year. Recipients will receive these payments as a direct deposit or by paper check, just as they would normally receive their benefits.

Those Social Security recipients who filed tax returns for 2018 or 2019 will be processed the same as other tax filers under the income limitation rules phasing out between $75,000 and $99,000.

Also, those Social Security recipients who were used as a claim for dependent credit in 2019 (or 2018 if a 2019 return not yet filed by claimant) may not see a payment. We await further clarification on how that specific situation will be handled.

See the IRS press release below.

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Social Security Recipients Will Automatically Receive Economic Impact Payments

April 1, 2020

WASHINGTON – The U.S. Department of the Treasury and the Internal Revenue Service today 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.

“We want to ensure that our senior citizens, individuals with disabilities, and low-income Americans receive Economic Impact Payments quickly and without undue burden,” said Secretary Steven T. Mnuchin. “Social Security recipients who are not typically required to file a tax return need to take no action, and will receive their payment directly to their bank account.”

The IRS 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.

 

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