SSA-1099 sample from IRS website

Earlier this week, I blogged about how people who filed a 2019 or 2018 tax return could utilize an online tool to provide direct deposit information to the IRS (if they hadn’t already via their tax return). This is very important since providing direct deposit information to the IRS will allow them to distribute economic impact payments (stimulus checks) much quicker. For people that don’t have a filing requirement in 2019 or 2018, the IRS has provided a separate tool so taxpayers can provide payment information. This post will focus on these non-filers.

Who can use this tool

Basically, this tool for non-filers is for anyone that can meet all three of the following requirements:

  • Must be a US citizen or permanent resident.
  • Gross income must not exceed $12,200 for individuals or $24,400 for married couples.
  • Must not have filed a 2019 or 2018 tax return and did not have a requirement to do so.

College students who are not claimed as a dependent and don’t have to file a tax return may want to utilize this tool.

How about Social Security and Railroad Retirement beneficiaries?

People who receive the following benefits will already get their economic impact payment sent to them the same way they already receive their benefits:

  • Social Security retirement
  • Disability (SSDI)
  • Survivor benefits
  • Supplemental Security Income (SSI)
  • Railroad Retirement and Survivor Benefits

The only time the above people would want to use this new tool for non-filers is if they have a dependent. This tool is the only way, aside from filing a tax return, to let the IRS know you are eligible for the $500 per child under 17. But even then, the three requirements to use the non-filers tool must be met.

Here is a scenario provided by the IRS as to when a SS recipient may want to use this tool due to having a dependent:

You’re married and support your ten-year old grandchild who lives with you. You and your spouse are both retired and receive Social Security benefits. Each year, you and your spouse each receive a Form SSA-1099 from the Social Security Administration showing the amount of your benefits. Neither you, your spouse, nor your grandchild are claimed as a dependent by another taxpayer for 2019. Your gross income as a couple is below $24,400 and you don’t need to file a federal income tax return. The IRS will automatically calculate and issue you an Economic Impact Payment based on the information listed on your Form SSA-1099. However, you qualify for an additional $500 Economic Impact Payment for your grandchild. You may register with the IRS using the Non-Filers: Enter Payment Info Here tool to get your Economic Impact Payment of $2,400 for you and your spouse plus $500 for your grandchild. You’ll get the additional $500 payment this year only if you register soon with the IRS or file a federal income tax return.

IRS website

Stimulus checks are already hitting people’s accounts.

I’ve heard from many clients that stimulus checks have already been hitting their accounts. If you are one of the non-filers that could utilize this tool, I would recommend doing it sooner rather than later. For any questions about the tool for non-filers, it might help to read through the non-filer scenarios provided by the IRS.

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