Many individuals across the country qualified for an economic impact payment, commonly referred to as a stimulus check, under the Coronavirus Aid, Relief and Economic Security (CARES) Act. The CARES Act was signed into law in March 2020 and qualified many Americans for stimulus checks, including those currently receiving benefits from the Social Security Administration (SSA).
While many economic impact payments have already been issued, many individuals are still wondering whether and how they will receive benefits under the CARES Act. Additionally, with the possibility of a second round of stimulus payments under the Health and Economic Recovery Omnibus Emergency Solutions, or HEROES Act, many are eager to understand the ramifications of these stimulus payments.
Stimulus checks from the CARES Act are issued from the Internal Revenue Service (IRS) to qualifying individuals. Those who qualify can expect to receive stimulus checks by direct deposit to the bank account listed on their 2018 or 2019 tax returns. Individuals may receive up to $1,200 and an additional $500 for each dependent child that qualifies under IRS guidelines. After issuing an economic impact payment, the federal government should send a confirmation letter within 15 days.
Under the proposed HEROES Act, which has passed in the House and will move to the Senate soon, individuals may receive up to $1,200 each, including children. For example, a family of four where the parents earn less than $150,000 would receive around $4,800. The Act would cap payments at $6,000 per family, but it’s important to note that the HEROES Act can issue payments to taxpayer identification numbers rather than a Society Security number as the CARES Act required, which will increase the number of those who receive payment.
Those who filed their 2018 or 2019 taxes should receive a stimulus check either by direct deposit or mailed check. Those who have not yet received a payment may be able to update their bank information on the IRS website to expedite their return. Recipients of Social Security Disability Insurance (SSDI), retirement benefits, or survivor benefits should have received economic impact payments by the end of April in the same way they receive SSA benefits.
Those who receive SSA benefits and did not file taxes in 2018 or 2019 may still receive a stimulus check using the IRS non-filer payment information tool. This tool allows you to enter your contact information to receive a mailed check or bank account information to receive your economic impact payment via direct deposit. Stimulus checks delivered through direct deposit should have been received by May 13, and mailed checks began being issued on May 15.
The HEROES Act would follow similar requirements. A person who filed their taxes in 2018 or 2019 would be eligible, and those who receive SSI or SSDI will also receive the second check, as long as the IRS has their information through tax records or the non-filer tool.
Those who filed taxes in 2018 or 2019 may receive an additional $500 for each qualifying dependent child. If a qualified child was not listed on a recipient’s tax return, they may not receive additional payments until the 2020 tax year. Recipients of SSI or SSDI benefits who missed the non-filer payment deadline may use the IRS non-filer payment information tool to add a qualified child to their tax status. Additionally, those who missed the non-filer payment deadline could also report the qualified child in a 2020 tax return to receive a $500 payment.
One of the more pertinent features of the HEROES act is that it would make all dependents, including older teens and college students, eligible for the $1,200 per-person stimulus payments. Under the newly proposed act, children and dependents who were previously ineligible for the first round of stimulus payments would qualify for economic assistance.
Navigating the deadlines and requirements for an economic impact payment while receiving SSA benefits may quickly become complicated. An experienced legal advocate from the Khaki Law Firm can advise you on what payments you are eligible for and help you navigate the process of receiving benefits. To talk to an experienced member of our team, contact out intake team today.