Treasury Reverses Stance on Stimulus Payments for Non-Filers
As might have been expected, the sweeping economic relief package enacted by the Government late last week has left many Americans with questions about how, and sometimes if, they will receive their “stimulus payment.” As originally announced, relief payments would be sent using banking data from 2019 income tax returns or, if 2019 not yet filed, from 2018 returns. According to the IRS, if bank data wasn’t already on file, stimulus checks would be mailed, or those in that category could quickly and easily file a simple 2019 tax return to accelerate receipt of their payment. Shortly thereafter, the IRS announced they would provide a special online portal for those who do not include bank account data on their tax returns, and for those who are not required to file income taxes, and that portal could be used to provide the IRS with bank account data for online stimulus payments.
Still faced with an avalanche of questions and objections for requiring tax filing by those who aren’t normally required to file, the Treasury Department last night (the evening of Wednesday, April 1st) announced still another move to smooth the distribution of economic relief payments to Americans. For those who receive Social Security benefits, including Social Security disability, and who aren’t required to file income taxes. the IRS will use their Social Security banking information – the account into which your Social Security payments are deposited. Thus, it is no longer necessary for Social Security beneficiaries to file a tax return to receive their stimulus payment. Instead, payments will be automatically deposited into their bank account.
Note that because of the size and scope of the coronavirus economic relief package (known as the CARES Act), and because of the sense of urgency to get economic relief into the hands of those who need it most, additional details from the U.S. Treasury Department are emerging almost daily. As new information becomes available, it will be posted here.