The IRS reversed course late Wednesday by no longer requiring people to file a tax return to receive the recovery payment authorized by the coronavirus relief bill, a change that will likely mean millions more will receive the checks of up to $1,200.
“Social Security recipients who are not typically required to file a tax return need to take no action, and will receive their payment directly to their bank account,” said Treasury Secretary Steven Mnuchin when announcing the change.
Initially, the IRS released guidance on Monday informing the public that filing a tax return is required to receive the payment if they haven’t already filed their returns for the 2018 and 2019 tax years. Senate Democrats decried the guidance, saying that it would deprive millions of relief. This requirement is no longer in place.
We called for this.
Because Social Security recipients, our vulnerable seniors, and people with disabilities MUST get the critical direct cash assistance from our new coronavirus response bill without having to file tax returns. https://t.co/CzL4ScCISO
— Chuck Schumer (@SenSchumer) April 2, 2020
The Treasury late Wednesday announced that “Social Security beneficiaries who are not typically required to file tax returns will not need to file an abbreviated tax return to receive an Economic Impact Payment. Instead, payments will be automatically deposited into their bank accounts.”
The $2.3 trillion relief bill provides all U.S. residents with incomes below $75,000 ($150,000 for married couples) a $1,200 payment ($2,400 for couples) as long as they have a work-eligible Social Security number and are not a dependent on another’s tax return. The payments are expected to cost the federal government nearly $300 billion, according to the Joint Committee on Taxation, which tallies the price of tax bills in Congress.
