Stimulus Checks: Salvation or Trouble for America?
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Washington (CNN) -
The Internal Revenue Service (IRS) has sent out roughly 127 million grant payments in the past two weeks, but some of the lowest-income social security recipients are among those who they are still waiting to receive the checks.
The delay affects those receiving Social Security, Supplemental Security Income (SSI), Railroad Retirement Board benefits, and Veterans Affairs (VA) pensioners.
They will automatically receive their subsidy payments, even if they don't normally file a federal income tax return.
The Social Security Administration (SSA) shares your contact information with the IRS and the money is likely to be delivered in the same way as regular benefits, whether it's direct deposit or a check in the mail.
But the information was not transferred between agencies until Thursday, after some Democratic lawmakers voiced alarm at the delay.
“We are demanding immediate answers from the IRS and the Social Security administrator as to why it is taking so long to send stimulus payments to many recipients of Social Security, SSI and VA.
This money should come out NOW, ”Rep. Bill Pascrell, a Democrat from New Jersey, posted on his Twitter account last week.
When will the next round of stimulus checks begin?
Stimulus Checks: What Should I Do With That Money?
7:09
Pascrell and other members of the House Ways and Means Committee, which oversees the two agencies, sent a letter Wednesday requesting that the files be transferred within 24 hours.
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On Thursday, Social Security Administration Commissioner Andrew Saul issued a statement to say that his agency sent the files at 9 a.m. that day, noting that it was a week before the SSA could provide the information to the IRS. last year, when the first round of stimulus payments was made.
"Social Security employees have literally worked day and night with IRS staff to ensure that electronic files for Social Security and SSI recipients are complete, accurate, and ready to be used to issue payments," Saul said.
The IRS has already released most of the stimulus payments that were approved by Congress earlier this month.
It will continue to send more batches of payments in the coming weeks.
Stimulus checks will be issued this weekend 1:05
Who receives COVID-19 subsidy checks?
The new payments are worth up to $ 1,400 per person and are expected to reach 85% of households, according to the White House.
Families will receive an additional US $ 1,400 per dependent, so a couple with two children could receive up to US $ 5,600.
Unlike previous payment rounds, families will now receive the additional money for adult dependents age 17 and older.
The total amount goes to individuals earning less than $ 75,000 adjusted gross income, heads of household (such as single parents) earning less than $ 112,500, and married couples earning less than $ 150,000.
But then the payments are phased out as income increases.
Lawmakers narrowed the scope of payments this time around, so not everyone who received a previous check will receive one now.
It cuts people who earn at least $ 80,000 a year in adjusted gross income, heads of households who earn at least $ 120,000, and married couples who earn at least $ 160,000, regardless of how many children they have.
What year are the income limits based on?
The new income thresholds will be based on the most recent taxpayer return.
If you have already filed a 2020 return by the time the payment is submitted and processed, the IRS will base eligibility on your 2020 adjusted gross income. Otherwise, it will be based on the 2019 return or information submitted via an online portal created last year for people who don't often file tax returns.
If your 2019 income was less than your 2020 salary, you will not owe any money.
But if your income dropped in 2020, filing your taxes now, before payments are made, may mean you will get a bigger check.
Reach those who need it most
The IRS can easily contact people who have filed their 2019 or 2020 tax returns because their address or bank account information is on file.
The agency will also automatically send the money to low-income people who don't normally file taxes but who submitted their personal information online to receive the stimulus payment last year.
That online portal is closed.
Instead, officials are encouraging people to file 2020 tax returns, even if they don't have to, to receive the stimulus money.
Checks Subsidies