The U.S. Dpeartment of the Treasury and the Internal Revenue Service announced on April 1, 2020 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. If you receive other typically non-taxable benefits, you should file a simple return at this time. 

 

 

The Treasury Department an the Internal Revenue Service announced that distribution of economic impact payments will begin in the next three weeks and will be distributed automatically, with no action requried for most people. However, some seniors and other who typically do not file returns will need to submit a simple tax return to receive the stimulus payment.

For people who have already filed their 2019 tax returns, the IRS will use this information to calculate the payment amount. For those who have not yet filed their 2019 returns, the IRS will use the information from their 2018 tax returns to caluclate the payment. The payments will be directly deposited into the same banking account reflected on the return filed. If the IRS does not have banking information, a web-based portal is being developed for individuals to provide their banking information to the iRS online so that individuals can recieve payments immediately as opposed to checks in the mail.

The IRS has said that if you do not typically have to file a tax return that you will need to file a simple tax return in order to receive a payment. Low-income taxpayers, senior citizens, Social Security recipients, some veterans and individuals with disabilities who are otherwise not required to file a tax return will not owe tax. This does not mean that if you were required to file that you can file a simple tax return in order to get the payment.

The IRS urges anyone with a tax filing obligation who has not yet filed a tax return for 2018 or 2019 to file as soon as they can to receive an economic impact payment. Taxpayers should be sure to include bank information on their returns. For those concerned about visiting a tax professional or local community organization in person to get help with a tax return, these economic impact payments are available throughout the rest of 2020. If you wait until June to file your return, you will receive your payment at that time.

Thursday, 24th September 2020
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