As a result of the Coronavirus Aid, Relief, and Economic Security Act the government passed last month, the Treasury will eventually send out 150 million stimulus payments to eligible Americans. As of April 24, the Treasury Department and IRS reported that 88.1 million payments totaling almost $158 billion had been sent out in the first three weeks of the program. That leaves about 62 million “eligible” Americans without payments as due dates for May’s bills creep closer.
In this final week of April, well over a month into the coronavirus pandemic and the financial fallout that’s come with it, some of the most vulnerable people in our community are slated to start receiving their stimulus checks. This week, people who receive Social Security retirement, Supplemental Security Income (SSI), survivors or disability insurance benefits (SSDI), or Railroad Retirement Board (RRB) benefits will begin receiving automatic $1,200 stimulus payments. The IRS will use information from the Social Security Administration or RRB to generate payments to these recipients, unless they filed a tax return for 2018 or 2019. Recipients will get the payments by direct deposit, debit card, or paper check, depending on how they normally receive their benefits.
Of course, many concerns still stand for people who regularly receive government assistance. For instance, there is the question of whether the stimulus check will affect a person’s eligibility for disability benefits. Someone who has been granted Temporary Disability benefits is regularly entitled to two-thirds of their average weekly earnings, but does that policy still stand with stimulus checks on the horizon? Will seniors who receive social security checks and veterans who receive pensions need to report their stimulus checks as income?
According to recent updates, the stimulus checks won’t affect eligibility for disability benefits. Those who receive SSI and veteran’s pensions won’t need to report the checks as income to the Social Security Administration. The checks are also not taxable. For the portion of the 650 million people around the world living with a disability who reside in the United States and receive SSDI, income and assets don’t normally factor into SSDI eligibility anyways. This means that the stimulus check won’t have an effect on their eligibility either. The stimulus money also isn’t subject to garnishment by the government, even for back taxes or student loan defaults.
The IRS website has also launched a tool to help people who are eligible for a stimulus payment but not planning on or required to file a tax return for 2019. This is known as the “non-filer” tool. Non-filers can provide direct deposit information with this tool, allowing them to receive an electronic payment rather than having to wait for a mailed check.
This tool is also how non-filers who receive SSI or Veterans Affairs benefits can register dependent children. These beneficiaries have until May 5 to register each of their dependent children under the age of 17 in order to receive an additional $500 payment per child. If they miss the deadline, beneficiaries will have to wait for the additional $500 per child until they file a 2020 tax return.
While government agencies get ready to send out the next round of checks to those in need, it’s important to stay updated on when you should expect your check and to help family members who may be waiting for their share of federal assistance. Remember to check in on your older family members. About 52% of people turning age 65 will need some type of long-term care services in their lifetimes, but the seniors in your life may need assistance now in figuring out the many intricacies of the COVID-19 stimulus checks. By helping your family members stay up-to-date on the status of their stimulus checks, you can help ensure that they can make it through the financial side of this crisis.
