The Internal Revenue Service (IRS) issued an alert reminding people that Economic Impact Payments (EIP) generally belong to the recipients, not to nursing homes or the organizations providing care for them.
Economic Impact Payments Are for the Recipients
The IRS believes that some people may be taking advantage of retirees who receive an Economic Impact Payment, a government measure that offers financial relief to those affected by the coronavirus outbreak.
It’s important to underline that payments are for the recipients. This applies even if a nursing home or facility or provider receives the person’s payment either directly or indirectly by direct deposit or check.
Benefit recipients don’t have to turn over their EIP because the payments they are considered and advance refund for 2020 taxes. They also do not count as income in determining eligibility for Medicaid and other federal programs
Economic Impact Payments Are Not Social Security Benefits
According to the Social Security Administration (SSA), a representative payee is only responsible for managing Social Security or SSI benefits, but an EIP is not included in that category. If the beneficiary wants to use the EIP independently, the payee should provide the EIP to the beneficiary.
If the SSA receives an allegation that the EIP was not used on behalf of the beneficiary, it may decide to investigate the matter. The SSA may also determine that the representative payee is no longer suitable and appoint a new representative payee.
The IRS has processed about 159 million Economic Impact Payments, totaling almost $267 billion. Beneficiaries may receive up to $1,200 for individual taxpayers and $2,400 for couples filing jointly. Additionally, taxpayers may also receive an extra $500 for every qualifying child.
Get Help From the Experts
The government’s response to the coronavirus outbreak is fluid. Therefore, it’s important to know this and other initiatives to navigate the current circumstances.
Our experts at JT Tax Services will help you take advantage of all the relief initiatives you are eligible for.
At JT Tax Services we have the experience, the knowledge and the drive to assist you. With our advice, you can file your taxes with peace of mind. You will rest easy knowing that you are limiting your liability while staying compliant with all regulations.