Rule hits recipients of Social Security
For relief check, tax filing needed
Americans who receive Social Security will be required to file a tax return to receive their $1,200 economic stimulus payment.
Many lawmakers and advocates for the poor say filing a tax return shouldn’t be necessary for people on Social Security because the government already knows how to send their monthly checks. The $2 trillion aid legislation, passed in response to the coronavirus pandemic, said that if someone has not filed a 2019 or 2018 tax return, then the Treasury Department should get the person’s information from Social Security, if applicable.
But the Internal Revenue Service posted a notice on its website on Monday instructing Social Security recipients who do not normally send in returns to file “simple” tax returns, which will be available soon.
“People who typically do not file a tax return will need to file a simple tax return to receive an economic impact payment,” the IRS said. “Low-income taxpayers, senior citizens, Social Security recipients, some veterans and individuals with disabilities who are otherwise not required to file a tax return will not owe tax.”
A request to the IRS and the Treasury Department for comment about the discrepancy was not returned. Both Democrats and Republicans have said they are upset that the Trump administration isn’t doing more to help ensure that as many Americans as possible get these payments during a national health emergency.
Thirty-four Democratic senators sent the White House a letter Wednesday
asking why the Trump administration is placing this “significant burden” on senior citizens and the disabled. GOP Sen. Josh Hawley of Missouri called it “ridiculous.”
“My colleagues and I strongly urge Treasury Secretary [Steven] Mnuchin and Social Security Administrator [Andrew] Saul to find a solution that will allow vulnerable groups to receive these funds automatically, without needing to file an additional return,” said Rep. Richard Neal, D-Mass., chairman of the House Ways and Means Committee.
More than 15 million Americans on Social Security do not file annual tax returns because their income is so low, according to the left-leaning Center on Budget and Policy Priorities.
During the last recession, when the U.S. government sent most Americans a stimulus check and required a filed tax return to get it, 3.5 million Social Security recipients were left out because they never sent returns, according to a 2008 Treasury Department analysis.
There is concern that even more people won’t file during the pandemic. Many older Americans are worried about their health and safety, and it’s harder to get help with a tax return while stuck at home.
“There is no need for Treasury to require those millions of Social Security recipients to file,” said Chye-Ching Huang, a tax expert at the Center on Budget and Policy Priorities. “We just hope it’s a misunderstanding and they clear it up quickly. It’s a really simple fix.”
Congress and the Treasury Department wanted to get the money out as quickly as possible, so they largely based the rules governing who gets the payments on the standards used in 2008, in the hope that the IRS could move faster. With millions of Americans out of work, the Trump administration is under pressure to quickly deliver the $1,200
Most high school seniors and college students won’t get any money.
payments to adults earning less than $75,000 a year and $500 payments per child to families with children younger than 17.
Mnuchin said direct deposits should begin by April 17, followed by checks in the mail for those who don’t have direct-deposit information on file. About 60% of tax filers gave the IRS direct-deposit information in recent years, said Nicole Kaeding of the National Taxpayers Union Foundation. The IRS said there would soon be a web portal for people to update their direct-deposit information.
OTHERS LEFT OUT
Beyond the tax-filing hurdle, millions of other Americans are realizing that they don’t qualify for a relief check.
Most high school seniors and college students won’t get any money.
The legislation gives nothing to families for children older than 16, a shock to many households and to college students readjusting to life at home with so many universities shut down.
Many migrant families also are learning that they are ineligible. In order for anyone in a family to receive a payment, each person in a household — including children — is supposed to have a valid Social Security number.
Nick Guerrero of Mesa, Ariz., has learned that he’s one of those who won’t be getting any money because he’s 18, another blow to a senior year of high school that is quickly unraveling.
On Sunday night, Guerrero was video chatting with a dozen friends, and they laughed at the thought of having to hold a virtual prom and getting their high school diplomas by email. On Monday, they woke up to the news that school was canceled for the rest of the year in Arizona.
“It was like a shot to the heart,” Guerrero said.
Some of his friends have lost their after-school jobs. He planned to get one soon to help save for college, but that is no longer possible. He has been applying for college scholarships, but some applications require him to use a fax machine or send a hard copy of his paperwork, and he no longer has access to the school printer.
Money is tight, and his family had to borrow from a relative to pay for his Advanced Placement tests this spring. His parents — an education professor and a golf coach — expect to receive their government relief payment in April, which should help, but they won’t get $500 for him.
Guerrero trades text messages on a chain with about 25 friends — classmates he hasn’t seen since spring break started on March 6. Each day brings more harsh news about people they know getting sick and families hurting for money. His mom’s phone pings frequently with messages from college students who can’t pay their rent.
“It seemed crazy to me that 17- and 18-year-olds won’t get this. We’re losing our jobs, too,” he said.