COVID-19 Stimulus
On Wednesday, March 10, 2021, Congress passed a new COVID-19 relief bill, the American Rescue Plan Act, which was signed into law by President Biden the next day. The $1.9-trillion relief package offers new economic assistance to individuals, families, schools, businesses and state and local government.
The Act is set to send a third round of stimulus payments of up to $1,400 per eligible individual or $2,800 for eligible married couples filing jointly. Adults who earned less than $75,000 will receive a full payment, with reduced payments to those earning up to $80,000; married couples who earned up to $150,000 will also receive a full payment with reduced payments to those earning up to $160,000. Children and adult dependents claimed on tax returns within these households are also eligible for $1,400 payments, including college students and some people with disabilities, not just children under 17. Undocumented immigrants are not eligible to receive direct payments. However, unlike previous rounds of payments, this Act would allow residents married to undocumented residents to receive stimulus payments. It is planned that direct deposit payments will be made first and automatically deposited in the bank account utilized on your most recently filed tax return. If the IRS does not have an individual’s direct deposit information, the individual will then receive payments via physical checks or Economic Impact Payment (EIP) debit cards.
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- Am I eligible for the second round of Economic Impact Payments?
- When were the second round of stimulus payments sent?
- Did I qualify for the first Economic Impact Payment?
- How do I check the status of my first or second payments?
- How do I claim my first or second EIP if I did not receive those payments?
- When can I file my taxes and how long do I have?
- How can I file my taxes for free or receive assistance filing my taxes at no cost?
- Am I eligible for an Economic Impact Payment if I receive SSI or SSDI and do not have other income?
- Will the payments affect my eligibility for Federal programs, like SSI or SSDI?
- When can SSI or SSDI beneficiaries, who have a Representative Payee, expect to receive their Economic Impact Payment?
- If I live in a nursing facility and Medicaid pays for the cost of my care and services, will the Economic Impact Payment affect my Medicaid eligibility?
- Can a nursing home or assisted living facility require me to hand over my Economic Impact Payment because I am on Medicaid?
- If my Social Security Administration (SSA) representative payee receives my Economic Impact Payment, are they required to turn over the entire amount to me?
- Is the prepaid VISA debit card I received in the mail from the government my Economic Impact Payment, and how can I use it without paying a lot of fees?
- Do I have appeal rights and what actions can I take if I do not receive the amount of Economic Impact Payment I expected to receive?
- How can I return an Economic Impact Payment that I should not have received?
Due to new income limitations, some individuals won’t be eligible for the third payment even if they received a first or second Economic Impact Payment or claimed a 2020 Recovery Rebate Credit.
Generally, someone is eligible for the full amount:
- $1,400 for an eligible individual with a valid Social Security number;
- $2,800 for married couples filing a joint return if both spouses have a valid Social Security number or if one spouse has a valid Social Security number and one spouse was an active member of the U.S. Armed Forces at any time during the taxable year; or
- $1,400 for each qualifying dependent with a valid Social Security number or Adoption Taxpayer Identification Number issued by the IRS.
If the adjusted gross income (AGI) is not more than:
-
- $150,000 if married and filing a joint return or if filing as a qualifying widow or widower;
- $112,500 if filing as head of household or; or
- $75,000 for eligible individuals using any other filing status.
Payments will be phased out – or reduced – above those AGI amounts. This means people will not receive a 2021 payment if their AGI is at least:
- $160,000 if married and filing a joint return or if filing as a qualifying widow or widower;
- $120,000 if filing as head of household; or
- $80,000 for eligible individuals using any other filing status.
Other important items to note under this round:
- Children and adult dependents claimed on tax returns within these households are also eligible for $1,400 payments, including college students and some people with disabilities, not just children under 17;
- Undocumented immigrants are not eligible to receive direct payments; and
- However, unlike previous rounds of payments, this Act would allow residents married to undocumented residents to receive stimulus payments.
Most eligible individuals will get their third Economic Impact Payment automatically and won’t need to take additional action. The IRS will use available information to determine your eligibility and issue the third payment to eligible people who:
- Filed a 2020 tax return;
- Filed a 2019 tax return if the 2020 tax return has not been submitted or processed yet;
- Did not file a 2020 or 2019 tax return, but registered for the first Economic Impact Payment with the Non-Filers tool in 2020; or
- Are federal benefit recipients who do not usually file a tax return. The IRS is working with Federal agencies to get updated information to issue the 2021 Economic Impact Payment at a date to be determined.
The third round of Economic Impact Payments are being sent in phases. The IRS started sending the first batch of payments with an official payment date of March 17. If you haven’t received one yet, it doesn’t mean you won’t.
Third payments will be sent each week to eligible individuals as they continue to process tax returns. Payments are sent by direct deposit or mailed as a check or debit card.
IRS is issuing the third payments in phases.
Find when and how your third Economic Impact Payment is being sent with the “Get My Payment” application. Get My Payment updates once a day, usually overnight.
You’ll see one of these messages when you use Get My Payment.
Payment Status:
Your payment has been processed and it will be sent on the date shown by direct deposit or mail. If your payment is by mail, you will receive an EIP Card (debit card) or a check. The amount of your third Economic Impact Payment is not shown.
OR
You’re eligible, but a payment has not been processed and a payment date isn’t available yet.
Payment Status Not Available: We haven’t yet determined your eligibility or you’re not eligible for a payment.
Need More Information: Your payment was returned to the IRS because the Postal Service was unable to deliver it. If you get this message, you can use the Get My Payment to enter your bank account information for direct deposit.
You may also have questions answered regarding “Get My Payment” tool in Get My Payment Frequently Asked Questions.
Unfortunately, IRS is advising to not call them regarding third round payments as their phone assistors do not have information beyond what’s available on IRS.gov.
On December 22, 2020, Congress approved a relief package which expanded EIP payments issued in 2020 as part of the Coronavirus Aid, Relief and Economic Security Act (CARES Act).
Generally, if you’re a U.S. citizen or U.S. resident alien, you may be eligible for $600 ($1,200 for a joint return), plus $600 for each qualifying child, if you (and your spouse, if filing a joint return) aren’t a dependent of another taxpayer on a 2019 tax return, have a Social Security number (SSN) valid for employment (see exception when married filing joint) and your adjusted gross income (AGI) does not exceed:
- $150,000 if married and filing a joint return or if filing as a qualifying widow or widower;
- $112,500 if filing as head of household; or
- $75,000 for eligible individuals using any other filing status.
Your payment will be reduced by five percent of the amount by which your AGI exceeds the applicable threshold above.
You aren’t eligible for a payment if any of the following apply to you:
- You were claimed as a dependent on another taxpayer’s 2019 tax return (for example, a child or student who may be claimed on a parent’s tax return or a dependent parent who may be claimed on an adult child’s tax return).
- You don’t have an SSN that is valid for employment issued before the due date of your 2019 tax return (including any extensions).
- You’re a nonresident alien.
- People who died before 2020.
- Are an estate or trust.
NOTE: For round two payments, you will not get a payment for an adult child over the age of 17, or a parent who is your dependent, if they are claimed as a dependent on your tax return.
Learn more about who is eligible to claim the Recovery Rebate Credit.
The Internal Revenue Service and the Treasury Department began delivering a second round of economic impact payments as part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 to millions of Americans who received the first round of payments in 2020. Payments began during the last week of December while more payments occurred in early January 2021.
Direct deposit payments were made first to those individuals with a valid routing and account information on file. Mailed payments followed via paper check or a debit card.
If you didn’t get a first or second payment or got less than the full amounts, you may qualify for the 2020 Recovery Rebate Credit and must file a 2020 tax return to claim it, even if you don’t normally file.
Visit the IRS Q&A page for additional information.
In order to be eligible for the Economic Impact Payment, you need to meet three conditions (1) have a valid Social Security number (2) not be claimed as a dependent of another taxpayer, and (3) had adjusted gross income under certain limits. Below is a link to the IRS webpage with the latest information on the Economic Impact Payment.
If you didn’t get a first or second payment or got less than the full amounts, you may qualify for the 2020 Recovery Rebate Credit and must file a 2020 tax return to claim it, even if you don’t normally file.
For information on first and second round payments, you may:
- View or create your online account – Securely access your individual tax information with an IRS online account including your first and second Economic Impact Payment amounts.
- Refer to IRS letters you received – IRS mailed Notice 1444 for the first Economic Impact Payment and Notice 1444-B for the second Economic Impact Payment to the address they have on file.
Direct payments were made to eligible individuals based on the information the IRS had on file for your 2019 tax return, the information provided by you in the online Non-Filers: Enter Payment Info Here tool in 2020, payment information entered on the Get My Payment tool or information provided by a federal agency that issued benefits to you (Social Security Administration, Veteran Affairs or Railroad Retirement Board).
Payments for round one and round two have been distributed by the IRS and most recipients should have received their payments by direct deposit. For Social Security and other beneficiaries who received the first round of payments via Direct Express, they should have received their second payment the same way.
Anyone who received the first or second round of payments, but didn’t receive a payment via direct deposit, should have received a check or, in some instances, a debit card.
IRS and Treasury have issued all first and second Economic Impact Payments. If you didn’t get a first or second payment or got less than the full amounts, you may qualify for the 2020 Recovery Rebate Credit and must file a 2020 tax return to claim it, even if you don’t normally file.
The fastest way to get your Recovery Rebate Credit (sent as a tax refund) is to file electronically and have it direct deposited into your financial account. You can use a bank account, prepaid debit card or alternative financial products for your direct deposit. You will need to provide routing and account numbers.
IRS began accepting tax returns February 12, 2021. They also recently announced that the federal income tax filing due date for individuals will be automatically extended from April 15 to May 17, 2021.
There are multiple ways for you to file your taxes at no cost to you and your family if you meet eligibility requirements. Free filing services are generally available to low- to moderate-income (LMI) persons with disabilities, the elderly and limited English speakers. However, eligibility requirements do vary, so please confirm prior to preparing and filing your taxes. Keep in mind you don’t have to be an expert to do your own taxes and you don’t have to do it alone. There are many free tax preparation options to help you get your refund and all the credits you’ve earned. Visit the Financial Resilience Center’s Tax Tips page to learn more.
Keep in mind: Electronic filing, including Free File, is the best way to avoid pandemic-related paper delays. E-filing combined with direct deposit is the fastest way to get a refund.
You do not have to be earning income as an employee of a company or from any other source in addition to your Social Security payment. However, if you are listed as a dependent on someone else’s federal tax return you may not be eligible for rounds one and two of the stimulus payments.
No. The Economic Impact Payment is not considered income; it is considered a tax refund, so it will not impact eligibility for Federal programs like SSI or SSDI. It is not counted towards means-tested resource limits for up to 12 months.
Cornell University’s Institute on Employment and Disability has provided a reference guide on how SSA and other public benefit programs treat the Economic Impact Payment and Unemployment Insurance for beneficiaries.
The Social Security Administration issued an update June 1, 2020 to beneficiaries who have their regular monthly payments managed for them by another person called a Representative Payee (RP). RPs started receiving Economic Impact Payments from the IRS on May 28.
Note: Special rules apply to beneficiaries living in the U.S. territories: American Samoa, Guam, Puerto Rico, the Northern Mariana Islands and the U.S. Virgin Islands. In general, the tax authority in each territory, not the IRS, will pay the EIP to eligible residents based on information the IRS provides to the territories. It is anticipated that beneficiaries in the territories could begin receiving their EIP in early June.
If you filed a 2019 or 2018 tax return:
Your $1,200 EIP should have been sent to the bank account provided on your tax return for an electronic tax refund, or mailed to the address provided on your tax return if a tax refund was mailed or if there was no refund.
If you did not file a 2019 or 2018 tax return:
- For an Organizational RP, the schedule above is the same, except that the payee may have received the EIP electronically or by paper check in the mail.
Typically, check payments to RPs are clearly designated. For example, “Susan Smith for” on the first line of the check and the second line of the check displays the beneficiary’s name. For EIP checks, there may be instances where the RP’s name on the first line of the check is condensed, or missing the “for” designation, or the “for” designation could appear twice. These differences should not prevent financial institutions and check cashers from processing the check.
No. According to the CARES Act, the Economic Impact Payment is considered a tax credit and it does not count as a “resource” for federal benefit programs like Medicaid, for up to 12 months. The payment is yours to spend on your wants and needs, any way you choose.
The Federal Trade Commission (FTC) has received reports of nursing homes and assisted living facilities throughout the country claiming that Economic Impact Payments count as “resources” under the rules of federal benefit programs and must be used to pay for services. The FTC encourages consumers to check with loved ones who receive Medicaid and live in these facilities, and if they are experiencing this issue, to file a complaint with their state attorney general and report it to the FTC.
This fact sheet on EIPs and Nursing Facilities and issues related to payments being seized (including where advocates can report issues) is now available on the CCD website.
Most nursing facility residents will receive Economic Impact Payments of up to $1,200. Even if Medicaid pays for your care and services at the facility, the payment belongs to you and not the nursing facility and you may use these funds in whatever way you choose.
On May 1, 2020, SSA confirmed that an Economic Impact Payment (EIP) is not subject to Representative Payee (RP) oversight because an RP is only responsible for managing SSA or SSI benefits. If you receive an EIP, the RP is required to turn the EIP over to you. An RP should discuss the EIP with you and, if you want to use it independently, the RP should provide it to you. Outside of their role as a RP, they can help you to use your economic impact payment in a specific manner or save it for you if that is your choice. If you suspect misuse, report it to SSA. Although it does not fall under their authority, they will look at whether your RP continues to be suitable. You can also report it to your State Protection and Advocacy office.
This fact sheet on EIPs and Nursing Facilities and issues related to payments being seized (including where advocates can report issues) is now available on the CCD website.
If you qualify for an Economic Impact Payment, you might receive your money on a prepaid VISA debit card, issued by MetaBank, through the mail. The Economic Impact Card will come in a plain envelope from “Money Network Cardholder Services” along with important information about the card, instructions for activation, fees and a note from the U.S. Treasury. If you receive such a card in the mail, do not throw it away. You will need it to access your Economic Impact Payment.
The National Consumer Law Center compiled a fact sheet on the prepaid cards, including information on how to access the money, use the card and avoid fees. It also includes information on what to do if the card was thrown out.
Learn how to use your prepaid VISA debit card and avoid fees.
The Economic Impact Payment is considered an advance credit against 2020 taxes. Taxpayers will not include the payment in taxable income on their 2020 tax return or pay income tax on the payment. It will not reduce a taxpayer’s refund or increase the amount of tax a taxpayer owes when the taxpayer files a 2020 federal income tax return next year.
Individuals should keep the letter they will receive by mail for their tax records. The letter should arrive approximately three weeks after the IRS issues the payment. When a taxpayer files a 2020 tax return next year, the taxpayer may claim any additional credit for which the taxpayer is eligible. The IRS is not able to correct or issue an additional payment at this time and will provide further details on IRS.gov on the action individuals may need to take in the future.
Visit the Economic Impact Payment Information Center for questions and answers about eligibility, payment amounts, what to expect and when to expect it.
If you didn’t get any payments, or got less than the full amounts, you may qualify for the Recovery Rebate Credit and must file a 2020 tax return to claim the credit even if you don’t normally file.
Millions of eligible individuals have already received their Economic Impact Payments. Some people, including those who received a payment for a deceased individual, may be unsure whether they should return a payment. The IRS has posted instructions for payments that were issued, cashed and deposited, not cashed or deposited and what to do if the payment was mailed to someone who has died.
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The Financial Resilience Center was developed by National Disability Institute with generous funding from the Wells Fargo Foundation.