From a Senate Finance Committee staff summary of the economic stimulus bill just passed by the House of Representatives and which is only pending the President's signature:
Are individuals with little to no income or those on means-tested federal benefits, such as SSI, eligible for a recovery rebate? Yes, there is no qualifying income requirement. Even individuals with $0 of income are eligible for a rebate so long as they are not the dependent of another taxpayer and have a work-eligible SSN.
Are seniors whose only income is from Social Security or a veteran whose only income is a veterans’ disability payment eligible? Yes, as long as they are not the dependent of another taxpayer. The bill also provides IRS with additional tools to locate and provide rebates to low-income seniors who normally do not file a tax return by allowing them to base a rebate on Form SSA-1099, Social Security Benefit Statement or Form RRB-1099, which is the equivalent of the Social Security statement for Railroad Employees. However, seniors are still encouraged to file their 2019 tax return to ensure they receive their recovery rebate as quickly as possible. ...
I am eligible for a rebate, what do I have to do to receive it? For the vast majority of Americans, no action on their part will be required to receive a rebate check since the IRS will use a taxpayer’s 2019 tax return if filed or their 2018 return if they haven’t filed their 2019 return. This includes many individuals with very low income who file a tax return despite not owing any tax in order to take advantage of the refundable Earned Income Tax Credit and Child Tax Credit.
What should I do if I did not file a tax return for 2019 or 2018? The best way to ensure you receive a recovery rebate is to file a 2019 tax return if you have not already done so. This could be accomplished for free online from home using the IRS Free file program (https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free). ...
This is a bit confusing. It says that the payments can be made just based upon the SSA-1099 but goes on to encourage Social Security benefit recipients to file a tax return even if they don't really have to. Why? What about SSI recipients? They don't get SSA-1099s. Do they have to file tax returns even though they have zero income?If I have a past due debt to a federal or state agency, or owe back taxes, will my rebate be reduced? No, the bill turns off nearly all administrative offsets that ordinarily may reduce tax refunds for individuals who have past tax debts, or who are behind on other payments to federal or state governments, including student loan payments. The only administrative offset that will be enforced applies to those who have past due child support payments that the states have reported to the Treasury Department.
12 comments:
From the ARC Usa page -
Forcing people with disabilities receiving Social Security and Supplemental Security Income (SSI) to jump through needless hoops to access stimulus payments.
People with disabilities were included in the stimulus payments, Recovery Rebates, which are exempt from asset and income limits. But to access payments, people must have filed 2018 or 2019 taxes, or now file them, even people with I/DD who receive SSI who earn too little to file taxes.
“We know that thousands of people with disabilities and family members implored their Members of Congress to include these needs in this bill. We are going to have to be a lot louder in the coming weeks, as we face the grim reality of this virus spreading further, putting the health, wellbeing, and lives of people with disabilities, their family members, and direct support professionals on the line,” said Berns.
It looks like SSI recipients should definitely be filing tax returns since it looks like it is being automated that way.
And it sounds like they should do so today.
It said before for ssdi no tax filing required did that change. Before it said they would get info from ssa. This is so confusing cause different people say different things. Please help me understand this. I don't get enough a year to have to file. I'm on ssdi only. Thank you.
"It said before for ssdi no tax filing required did that change. Before it said they would get info from ssa. This is so confusing cause different people say different things. Please help me understand this. I don't get enough a year to have to file. I'm on ssdi only. Thank you."
I don't think that any of us, including Charles, know what the actual correct/easiest course of action is yet.
This summary says that you should file a 2019 tax return to make sure that you get the refund faster. However, the summary does not tell us how you ask for the refund if you are on SSDI, but have no federal taxable income, so you have not filed 2018/2019 tax returns.
Since we don't yet know how you ask for the refund if you are on a tax-exempt level amount of SSDI, the only known course of action to actually get your rebate check, based on this summary, is to file a 2019 tax return.
Since this is new, SSA will probably issue something about it clarifying things.
I think it is pretty clear that anyone getting an SSA or RRB 1099 will get a rebate (not refund) payment. The issuance of a 1099 means that they know who you are and how to pay you. Hence, no tax return but a 1099 = they know who you are.
SSI recipients - no SSA-1099, no tax return. No, they don't immediately know who you are nor how to pay you (without SSA providing them a list, which they could do.)
Yes, Treasury makes the payments but likely they need to be able to consolidate to avoid multiple payments.
@2:44 giving additional money to those on benefits should not even happen. It should be for workers. So if they have to jump through a hoop, they best get jumping or miss out.
Does anyone know whether stimulus payments will be counted as an asset/income for SSI recipients? I recall the 2008 stimulus was not counted towards their assets. It would seem counterproductive to given them money to help stimulate the economy and benefit them, but then kick them off SSI/Medicaid.
Has anyone seen a statement from social security?
@10:06
The money is to stimulate consumer spending, or at least prevent it from decreasing. As the disabled and retired are consumers, it makes as much sense as anyone else that they get checks. As to workers, or at least recent workers, the bill also contains additional benefits for them, through expanding unemployment.
@10:58
My understanding is, it is not intended for it to count as income. As to assets, in 2008 SSA did delay treating it as an asset for two months, but after that it counted.
https://secure.ssa.gov/poms.nSf/lnx/0202821001
What about people who have been disabled their whole lives and receive supplemental security income. Do we receive the stimulus check too.
First it says you dont have to file for ssdi now it says you do. I have the ssa1099 form and this is my only income. I thought they were going to use this info. It's so confusing it keeps changing so which one is the right answer do I have to file or not. Some offices are closed.I don't have the money to spend to file online. This is so stressfull.
Still doesn't specifically address SSI recipients but at least some things are coming together:
https://home.treasury.gov/news/press-releases/sm966
(IRS has also updated their page to list this press release.)
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