In an Information Release, IRS has announced that recipients of Social Security retirement, survivor or disability benefits and recipients of Railroad Retirement benefits, who have dependent children, must use the IRS non-filer web-based tool by noon on this Wednesday, April 22, in order to receive the $500-per-child payment as part of their COVID-19 economic impact payment (EIP). Those missing the deadline can receive the $500-per-child in association with their 2020 tax return filing.
Background.
In a March 30, 2020 Information Release, IRS provided details on the distribution of EIPs that are part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, PL 116-136, 3/27/2020). In the Information Release, IRS stated that EIPs would be distributed automatically, with no action required, for most people. However, IRS also stated that people who did not file a 2018 or 2019 federal income tax return, including individuals who typically are not required to file a return, would need to submit a “simple” tax return to receive the stimulus payment. (IR 2020-61, 3/30/2020)
Thereafter, IRS announced that persons receiving Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits, Supplemental Security Income (SSI) and Veterans Affairs beneficiaries, who didn’t file a tax return in the last two years, would receive the up-to-$1200 portion of the EIP without having to file a return.
However, persons who receive the above government benefits and have a qualifying child, who wish to obtain the additional $500 per child EIP, must register by visiting the “Non-Filers: Enter Payment Info” IRS website and providing their information in the Non-Filers section.
See, for example,Most VA benefit recipients will receive economic impact payments automatically .
Observation.
The need to use the Non-Filers tool to obtain the $500 per child only applies to taxpayers who have not and will not file federal income tax returns for 2018 and 2019.
April 22 deadline for Social Security and Railroad Retirement recipients.
Persons receiving Social Security retirement, survivor or disability benefits or Railroad Retirement benefits—who have children and who weren’t required file a tax return in 2018 or 2019—should visit the “Non-Filer: Enter Payment Info Here” tool on IRS.gov by noon on Wednesday, April 22. By quickly taking steps to enter information on the IRS website about them and their qualifying children, they can receive the $500 per dependent child payment automatically in addition to their $1,200 individual payment. Otherwise, their payment at this time will be $1,200 and, by law, the additional $500 per eligible child amount will be paid in association with a return filing for tax year 2020. They will not be eligible to use the Non-Filer tool to add eligible children once their $1,200 payment has been issued.
SSI and VA beneficiaries have some additional time beyond April 22 to add their children since their $1,200 automatic payments will be made at a later date. SSI recipients will receive their automatic payments in early May, and the VA payment schedule for beneficiaries who receive Compensation and Pension (C&P) benefit payments is still being determined. If they have children and aren’t required to file a tax return, both groups are urged to use the Non-Filer tool as soon as possible. Once their $1,200 payment has been issued, they will not be eligible to use the Non-Filer tool to add eligible children. Their payment will be $1,200 and, by law, the additional $500 per eligible child amount will be paid in association with a return filing for tax year 2020.
To continue your research on economic impact payments under the CARES Act, see FTC 2d/FIN ¶A-4460.
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