New COVID-19 Tax Rebate Plans: Urge Congress to Fix the Glitch for People on SSI Only & VA Disability Only

By MUUSJN on Monday, April 13th, 2020

New Federal Tax Rebates Starting Next Week

BUT People on SSI or VA Benefits MUST File for Taxes to Get Rebate People on Social Security or Who Filed Taxes Electronically Will Automatically Get a Rebate But Low Income, Vets Receiving Disability Payments Will Need to File Information With IRS to Get a Rebate

CALL YOUR MICHIGAN MEMBERS OF CONGRESS:

1-202-224-3121 (Congressional Switchboard)

Click HERE for Our U.S. Senators and Representatives

TELL YOUR MEMBERS OF CONGRESS

  1. Thank the Dept. of Treasury for doing the right thing for Social Security (SS) beneficiaries;
  2. Tell Treasury & SS Administration to FIX THE GLITCH: Send rebates directly to SSI and VA Disability recipients without requiring them to file their taxes;
  3. People on SSI or veterans on VA Disability may not know they MUST file in order to get a rebate and may not have access to a computer to file electronically;
  4. Direct payments are critical to the survival of poor and disabled persons;
  5. Vote to include this reform in the next COVID-19 relief bill (the CARES ACT #2)

Introduction

The U.S. is in the midst of a health and an economic crisis that resulted in passage of a $2.3 trillion economic stimulus bill called the CARES Act. This act is meant to benefit both consumers and businesses. Direct economic relief to consumers, through tax rebates, should not create a hardship forthe most poor and people with disabilities, due to a glitch in the way the program is administered.

What You Need to Know About the COVID-19 Tax Rebates

  1. As soon as April 15th, 50 – 70 million Americans will begin receiving extra money ($1,200 individual/$2,400/couple and $500 for each child under age 17) directly deposited in their bank. These people gave their bank account to the IRS and filed their taxes electronically. If your income is above $75,000/individual or $150,000/couple your rebate will be reduced.
  2. As early as April 20th, a second group of people may start getting checks. These are people on Social Security retirement, Social Security Disability Insurance (SSDI), SS survivors or Railroad Retirement benefits. Without filing, they will receive a rebate directly deposited in their bank.
  3. The last wave of tax rebates will involve mailing tax rebate checks to people who filed their taxes, but not electronically, in either 2018 or 2019. Mailing checks creates a risk of mailbox theft.
  4. If you have not yet filed your 2019 taxes, the IRS will use information from your 2018 return to calculate your payment. You still have until July 15, 2020 to file your taxes.
  5. Low income taxpayers (including people on Supplemental Security Income). veterans receiving VA disability payments and others will need to file on-line at: www.irs.gov. They and “non-filers” will “fall through the cracks” if they don’t know their rights.
  6. “Non-filers”, who did not file their taxes because their income was below $12,200/year ($24,400/couple) in 2019 and didn’t plan to file or who were otherwise not required to file for taxes, can file on-line on www.irs.gov to make sure they get their coronavirus tax rebates. Non-filers will need to provide: full name, current mailing address, email address, date of birth, valid Social Security number, bank account type and routing number if you have one.
  7. The IRS is rolling out another on-line tool to apply for a tax rebate called “Get My Payment”. that is supposed to be available by April 17th. Go to www.irs.gov for more information.
  8. Click HERE for more information from the Consumer Financial Protection Bureau “Guide to COVID-19 economic stimulus relief” (April 10, 2020)

CONCLUDING REMARKS

People on SSI (a program for very low income persons) and people on VA disability assistance receive federal funding just like people on Social Security. They too should be able to benefit from direct depositelectronic benefit payments. For some people, this will require them to open a bank account. However, our national response to the COViD-19 crisis will be more humane and efficient if we extend direct deposits to the most vulnerable in our society. These are the people who most need the money and who are most likely to spend it — keeping keep our economy going.

SOURCES:

  1. Justice in Aging alert “Seniors: Covid-19 Updates”, 4/4/20
  2. Detroit Free Press “50M to 70M Americans Can See Checks Next Week”, Susan Tompor, 4/8/20
  3. Detroit Free Press, “Never File a Tax Return? Take Note: IRS has a new tool to get your stimulus money”, Susan Tompor, 4/10/20
  4. Slide Presentation on “Fix the Glitch” campaign, by American Association of People on Disability (Washington D.C.) April 2020
  5. Internal Revenue Service (IRS), (www.irs.gov, “Get Coronavirus Tax Relief”, “Non-Filers: Enter Payment Information”; “Get Info on Economic Impact Payment”, 4/11/20
  6. Consumer Financial Protection Bureau, “Guide to COVID-19 economic stimulus relief”, 4/10/20

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