Fill Out Income And Personal Identification Information
STEP 2 E-file your tax forms, requests both required and optional information.
Required:
- Personal verification: The form asks for your 2019 Adjusted Gross Income. If you did NOT file taxes last year, enter 0 in the box. Ignore part B which asks for last years self-selected signature PIN.
- Electronic signature: Instead of signing your name, your signature is a 5-digit PIN number that you create.
Note: these fields are required for you and your spouse if you are married filing jointly.
Optional:
- Cell phone number
- Drivers license or state issued ID number, state, issue date, and expiration date leave blank if you dont have one
Youre Married And Filed A Joint Tax Return
If youre married and filed a joint tax return, half of your third stimulus payment might be delayed. Thats because the IRS is sending two separate payments to some joint filers. The first half may come as a direct deposit, which you may have already received. But the other half is then mailed to the address the IRS has on file, which is generally the address on your most recent tax return or as updated through the U.S. Postal Service. The second payment could come the same week as the first oneor it might not arrive for a few weeks.
If youre a joint filer and only get half of what you should have received, both you and your spouse should check the IRSs Get My Payment tool separately using your own Social Security number to see the status of your payments.
When And How Will I Get My Stimulus Payment
Direct deposit payments are being made by the IRS first, with paper checks and prepaid cards to follow. Estimated dates for delivery arent yet available, but since the IRS is already busy processing 2020 tax returns, a somewhat slower rollout than with the second stimulus check is possible.
- If youve supplied direct deposit information to the IRS , your Economic Impact Payment will be deposited directly into your bank account on file with the IRS.
- If you havent supplied direct deposit info to the IRS, a paper stimulus check or prepaid EIP card will be mailed to you.
Not sure if the IRS has your account information?
Visit the Get My Payment site at IRS.gov to find out. You can also check the status of your payment.
Read Also: Purchases Subject To Use Tax
Some Federal Benefit Recipients Already Have Received An Economic Impact Payment
The IRS emphasizes that federal benefit recipients in these groups who file tax returns already started to receive Economic Impact Payments earlier this month, along with other taxpayers.
Because some federal benefit recipients do not file tax returns, the IRS did not have in its tax systems the current information needed to generate the Economic Impact Payments. Last year, the IRS took the unprecedented step to receive and review data from other federal agencies and use that data to deliver payments automatically to these recipients. This action which had never occurred in previous stimulus efforts minimized risk and burdens for the American public during the pandemic. Due to regular changes in the federal benefits population, the IRS needed to receive updated information this month from other government agencies. With these critical updates, eligible federal benefit recipients who don’t normally file an income tax return will get a payment automatically in the next few weeks.
Making these automatic payments to federal beneficiaries involves a complex, multi-step process to handle recipient data from the other agencies. For the first round of Economic Impact Payments last year, recipients in these groups received payments within four to six weeks after the CARES Act was signed into law. For the American Rescue Plan signed March 11, the IRS projects that it is on track to deliver Economic Impact Payments to federal beneficiaries at the same or faster speed.
Unemployment Insurance And Ssi/ssdi
Supplemental Security Income
- SSI is a needs-based program.
- Recipients are required to apply for any other benefit they may be eligible to receive which includes UI
- Recipients may be eligible for more income through UI than SSI
- SSI would be suspended while receiving UI over the Federal Benefit Rate
Social Security Disability Insurance
- SSDI is an insurance program
- Unearned income and resources do not impact eligibility
- Recipients may be eligible to receive both UI and SSDI
- UI has no impact on the SSDI benefit amount or eligibility
Also Check: Irs Solar Tax Credit 2021 Form
Can I Still Sign Up For A New Direct Express Account
You can sign up for a new Direct Express account at any time to receive monthly federal benefits electronically, but if you don’t currently have an account, you’ll receive your third stimulus check a different way, likely .
If you closed your Direct Express account or there’s an error sending money to an inactive account, the payment will be returned to the IRS, which will reissue the stimulus money another way — probably via mail sent to your last known address. If you moved, make sure to inform the IRS and USPS of your new address.
To contact Direct Express to enroll in a new account for monthly benefits, call 1-800-333-1795, Monday through Friday from 6 a.m. to 4 p.m. PT . Note that Direct Express representatives may not be able to answer stimulus check questions.
If you have missing stimulus money for yourself or your dependents, you need to claim it when you file your tax return.
Taxation Of Social Security Disability Backpay
Large lump-sum payments of back payments of SSDI can bump your income up for the year in which you receive them, which can cause you to pay a bigger chunk of your backpay in taxes than you should have to.
To avoid losing part of your backpay this way, the IRS allows you to apply the SSDI benefits owed from a prior year to prior tax returns, lowering your income for the year you receive the lump sum. For example, if you were entitled to disability benefits for 22 months before you received your back pay, you could amend your tax returns for two prior years to claim some of the income in those years instead of the current year. You should ask a lawyer or CPA for help on this its complicated. For more information, read our article on how Social Security disability backpay is taxed.
Don’t Miss: Capital Gains Tax Calculator New York
If I Haven’t Received My Stimulus Check What Should I Do
If there’s a problem with your stimulus check, the SSA and VA refer you back to the IRS. However, the IRS doesn’t want you to call if you have an issue with your payment, and points out repeatedly on its FAQ pages that phone staff don’t have additional information beyond what’s available to you in the IRS tracking tool. So, what then?
Depending on the situation, there may be a few self-service options if you run into stimulus check trouble or are looking for an explanation of what’s holding up your check. Otherwise, you may need to request a payment trace with the IRS, but there are specific timing rules for that.
Some of the rules surrounding the third stimulus payment get complicated.
Can You File Income Taxes When You Receive Ssi
More than 8 million Americans received Supplemental Security Income benefits in 2017. If you are one of those SSI recipients, whether you are required to file an income tax a return depends on your other sources of income, if any, and how much you receive. Anyone with a Social Security number can file a tax return, but not all citizens are required to do so. Understanding the relationship between SSI and income tax is critical for individuals who may be in a position to benefit from these payments.
Tips
-
Since SSI isnt taxable, you wont have to file an income tax return if that is your sole source of income. For all other income, you are required to file a return if you meet your statuss minimum filing requirements.
Also Check: How To Get Previous Tax Returns
Your Bank Account Number
When you file your taxes, make sure you use your current banking information if you would like your payment through direct deposit.
Typically, you’ll receive this payment using the refund option you select on your tax return. If you received an advanced refund through your tax service provider or paid your tax preparation fees using your refund, you’ll receive your payment by check in the mail.
How Do I Request A Recovery Rebate Credit
You can request a Recovery Rebate Credit for any portion of the stimulus payment that you should have received but didn’t. You do this by filling out line 30 of Form 1040 . The 2020 instructions for Form 1040 and Form 1040-SR include a worksheet you can use to calculate the amount of credit you are eligible for.
Also Check: What Does It Mean To Write Off Taxes
Can You Owe On Ssi Income
While SSI does not constitute taxable income, benefits can be reduced if the recipient does not meet the limited resources requirement. Countable resource limits for SSI equal a total of $2,000 for individuals or $3,000 for married couples. In simplest terms, a resource is defined as cash or an asset that can be converted into cash.
Countable resources are measured to include assets such as cash, life insurance, vehicles and other property. Many SSI recipients also receive other Social Security benefits, and it is important to know that, unlike SSI, those benefits may count toward total income or even be taxable.
It is important for individuals receiving SSI to stay within the income and resource thresholds for their benefits. However, there are also assets or resources that do not count toward SSI limits. A primary residence is one example of a non-countable resource.
SSI benefits can be reduced if a person earns too much income, but the SSI itself is not taxable as income. Alternately, regular Social Security benefits can be counted toward taxable income when incomes levels rise above the $25,000 threshold for individual filers or $32,000 for joint filers.
What Do You Do If You Havent Received Your Second Stimulus Check From The Irs By January 15
The new law passed states that by that date the IRS must have sent most of the Economic Impact Payments. The Supplemental Appropriations for Coronavirus Response and Relief Act of 2021 under which the second round of $600 minimum stimulus checks are distributed requires the Internal Revenue Service and the Department of Treasury to distribute most payments by January 15.
But, in case the IRS was unable to process your payment due to lack of beneficiary information, you must claim it by filing a tax return in 2021 as a Refund Recovery Credit using Form 1040 or Form 1040-SR.
You May Like: State Of California Estimated Taxes
New Mexico Stimulus Checks
New Mexico “stimulus” payments for eligible residents come in the form of two tax rebates in 2022. The first tax rebate amount is $500 for joint filers, head-of-household filers, and surviving spouses with incomes under $150,000, and $250 for single filers and married people filing separate tax returns. The second tax rebate is worth $1,000 for joint filers, head-of-household filers, and surviving spouses, and $500 for single filers and married residents filing separately.
The first-round of tax rebates began in July, while the second-round payments began in June. However, payments will continue to be sent to people who file a 2021 New Mexico tax return by May 23, 2023. As a result, some New Mexicans will receive rebate checks in December. If you filed a 2021 return but haven’t received a rebate, you can all the New Mexico Department of Taxation and Revenue at 866-285-2996.
For New Mexico taxes in general, see the New Mexico State Tax Guide.
Does The Stimulus Money Or Recovery Rebate Affect My Eligibility For Disability Benefits
For SSI eligibility purposes, the stimulus check or rebate doesn’t count as income to you, and you don’t need to report it as income to the Social Security Administration. Plus, it’s not taxable. In addition, for SSI, the stimulus money or rebate won’t count as a resource unless you still have all or part of it 12 months after receiving it.
For SSDI eligibility purposes, income and assets don’t matter, so the stimulus check will have no effect.
You May Like: States With The Lowest Sales Tax
Remember To Check Your Earnings History
If you dont receive Social Security benefits, this is a great time to review your earnings history by looking at your Social Security Statement . Its important because your future Social Security benefits will be based on your earnings history we received from the IRS. Underreported earnings will mean lower monthly benefit payments when you are ready to start receiving them.
Use your Statement to review your earnings history and to see personalized benefit estimates so you can plan for your future.
Tax season doesnt have to be a stressful time of year. And for many people, its an opportunity to claim additional money. Thanks to the American Rescue Plan, more Americans can claim larger Child Tax Credits and Earned Income Tax Credits for 2021.
Please share this blog with family and friends and remember that Social Security is here to help secure your today and tomorrow.
Understanding The Earned Income Tax Credit
The EITC is a tax credit for low to medium workers and families. If you are eligible, you may utilize the credit to offset your tax liability and perhaps boost your refund. The amount of EITC you may qualify for is typically determined by your earning income and the number of eligible children you have.
Am I Qualified For The EITC If I Receive Social Security Or SSI?
Yes, assuming you fulfill the EITCs eligibility requirements. Receiving Social Security or SSI has no bearing on your EITC eligibility.
Read Also: Where Cani Get Tax Forms
If Youre A Nonfiler How Do You Claim Your Missing Stimulus Money Is It A Free Process
In the first round of stimulus checks, the IRS sent letters to 9 million nonfilers with information on how to file a claim to get their missing stimulus money. The agency instructed nonfilers to use the nonfilers tool to enter their information by Nov. 21, 2020. But if you missed the deadline, you can still claim your money as a Recovery Rebate Credit by filing a 2020 federal income tax return even if you usually dont have to:
When you file a 2020 Form 1040 or 1040SR you may be eligible for the Recovery Rebate Credit. Save your IRS letter Notice 1444 Your Economic Impact Payment with your 2020 tax records. Youll need the amount of the payment in the letter when you file in 2021.
If you did use the IRS nonfilers tool, you should have automatically received a second payment. If you didnt, you can still file for that money as a Recovery Rebate Credit as well.
File for your Recovery Rebate Credit as part of a federal tax return this year, even if you dont normally do so. The IRS started processing 2020 tax returns on , and the federal tax return deadline was extended to May 17 but you can still file a tax extension.
To get started, most nonfilers are eligible to use the IRS Free File tool . As the name suggests, this tool lets you obtain a free federal tax return and in some cases a free state return as well. Its available to use now.
This Is Bad: Your Stimulus Check Could Cost You Disability Benefits
Due to a misunderstanding between the Social Security Administration and other parts of the government, some Americans have lost their eligibility for disability payments.
Due to a misunderstanding between the Social Security Administration and other parts of the government, some Americans have lost their eligibility for disability payments, the HuffPost reported this week.
The whole point of stimulus was to help people who were being harmed during COVID, and now theres going to be people facing a cessation of benefits and theyre going to end up in a worse place, Michelle Spadafore, senior supervising attorney with the New York Legal Assistance Group, told the news outlet.
It appears that the stimulus checks have pushed some beneficiaries incomes above the threshold under which they are eligible for benefits, even though that isnt supposed to happen.
The report also noted that the resource limit of $2,000 for individuals and $3,000 for couples hasnt been updated since 1989. President Biden, however, has proposed raising that figure, although the legislation has not yet been introduced.
Youre going to give me a stimulus check to stimulate the economy, and I cant go out under doctors orders and youre penalizing me for having this money, one man affected by the mistake said. Now its going to cost me money to have this money.
After the American Rescue Plan passed, Forbes looked at what the legislation does to help disabled people.
You May Like: Is Hazard Insurance Tax Deductible
Real Tax Experts On Demand With Turbotax Live Basic
Get unlimited advice and an expert final review. Done right, guaranteed.
-
Estimate your tax refund andwhere you stand
-
Know how much to withhold from your paycheck to get
-
Estimate your self-employment tax and eliminate
-
Estimate capital gains, losses, and taxes for cryptocurrency sales
The above article is intended to provide generalized financial information designed to educate a broad segment of the public it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.
Also Check: What States Are Getting Stimulus Check