Recent Tax Updates

Additional Things to Know About the Economic Impact (Stimulus) Payment

By Mark Castro, CPA
April 22, 2020

Here are three additional things to know about the Economic Impact (Stimulus) Payments.

SSI and VA Benefit Recipients
Since many SSI and VA benefit recipients typically are not required to file tax returns they will receive their Economic Impact Payment with no further action needed on their part.

Additional programming work remains and the timing of the payments to these taxpayers is still being determined.

See the following IRS news releases for more information:

  • IR-2020-73 – Supplemental Security Income recipients will receive automatic Economic Impact Payments
  • IR-2020-75 – Veteran Affairs recipients will receive automatic Economic Impact Payments

Bank Product Returns Where Associated Bank Product Account is No Longer Active
If a taxpayer used a bank product to receive their refund and the associated account has been closed or is no longer active, the bank is required to reject the deposit and return it to the IRS. When this occurs the IRS will reissue the Economic Stimulus Payment as a paper check and it will be automatically mailed to the address on the 2019 tax return.

The IRS Get My Payment online tool will then be updated to reflect that the payment will be issued as a paper check. The timing of this process depends on several variables, including when how the payments are rejected and returned to the IRS.

For more information see the Get My Payment FAQs – In the Bank Account Information section (Get My Payment says that my Economic Impact Payment was sent to an account I don’t recognize)

Eligibility for Stimulus Payment – Filing Married Filing Joint and One Spouse Has an ITIN
When spouses file a joint return, both spouses must have a valid SSN in order to receive an Economic Impact Payment. The only exception is when one of spouses is a member of the US Armed Forces during the year.

For more information see Question 14 on the IRS Economic Impact Payment Information Center page.

For additional information on the Economic Impact Payments see the following on the IRS website: