The Internal Revenue Service wants to make sure taxpayers timely receive their Economic Impact Payments, which is why they worked with the tax industry to develop online reporting and tracking tools for IRS.gov. While non-filers receiving Supplemental Security Income (SSI) and Veterans Affairs (VA) benefits are scheduled to automatically get a $1,200 Economic Impact Payment, the IRS says beneficiaries need to report qualifying dependents before May 5, 2020, to receive an additional $500 per qualifying child with their EIP.
What is the $500 dependent payment?
With the CARES Act, Congress authorized $1,200 Economic Impact Payments to help Americans facing financial hardship due to the coronavirus epidemic. The legislation also included a provision designed to give families extra help: Eligible filers receive an additional $500 payment per qualifying dependent. The recent IRS press release is the agency’s latest effort in its “Plus $500 Push” campaign.
Why do SSI and VA beneficiaries need to report dependents?
While non-filers who receive SSI and VA benefits will automatically receive a $1,200 payment in the coming weeks, the IRS does not currently have information related to those Americans’ qualifying dependents. So, beneficiaries need to supply the IRS with additional information to receive the “plus $500.”
How do SSI and VA beneficiaries report dependents to the IRS?
The agency developed the Non-Filers: Enter Payment Info Here tool on IRS.gov to help Americans who don’t normally file a tax return conveniently report their EIP qualifying information. To find it, go to IRS.gov and click the upper-left-hand link titled “Non-Filers: Enter Payment Info Here.”
Why is May 5 the deadline for SSI and VA beneficiaries to report dependents to the IRS?
Since the IRS is automatically sending SSI and VA beneficiaries their $1,200 Economic Impact Payment in a few weeks, the only way they will get the additional $500 payments at the same time is if they report that information to the IRS by May 5. Here’s another wrinkle: They will not be able to use Non-Filers: Enter Payment Info Here to report qualifying beneficiaries after the deadline.
Can SSI and VA beneficiaries who miss the dependent reporting deadline still receive the additional $500 payments?
SSI and VA beneficiaries will still be able to receive the additional $500 payments per each qualifying child if they report those dependents to the IRS after May 5, 2020. Those payments will simply come separately from the initial $1,200 EIP.
Source: IR-2020-81
Patricia Parrilla Tax Services