In the wake of the spreading coronavirus pandemic, U.S. lawmakers enacted a $2.2 trillion stimulus package that includes economic impact payments to the majority of Americans in order to combat the financial consequences of the outbreak. As part of the rescue package signed into law by President Donald Trump, Americans will receive checks of up to $1,200.
For individuals with a disability and those who may be receiving Medicaid services, here is important information about what to expect and how to obtain economic impact payments:
- Independent adults (those not claimed as a dependent by a parent on their taxes) will receive the full amount of $1,200, as long as their income does not exceed $75,000 annually.
- Those who receive Social Security payments in the form of SSDI and are mailed a form SSA-1099 annually will not need to take any additional steps in order to receive this payment. It will be direct-deposited into the account in which monthly Social Security benefits are deposited or mailed to the address where individuals receive monthly checks.
- For individuals who receive Supplemental Security Income (SSI), for whom the IRS does not send 1099s, a tax return for 2018 or 2019 is required. If one has not already been filed, a simple or abbreviated tax return for year 2019 can be filed through July 15, 2020. This requirement must be met in order to receive the stimulus check, even for those who do not typically file an annual tax return.
- An abbreviated tax return can be filed for free online, and many community agencies can assist with preparing the abbreviated tax return. The IRS encourages any individual who must file an abbreviated tax return to include direct deposit information to avoid any unnecessary delays in receiving the economic stimulus. Upon receipt and processing of the abbreviated tax return, the IRS will direct deposit the payment to the account provided, or mail to a home address if direct deposit information is not provided.
It is important to note that stimulus money is not considered taxable income, and it will have no impact on an individual’s Medicaid eligibility or eligibility spenddown.
Please check back for updates to this process and for a list of community organizations that can assist with filing an abbreviated tax return.