Alert! Stimulus NOT at Risk for SSI and SSDI

Alert! Stimulus NOT at Risk for SSI and SSDI

(FinancialHealth.net) – When Congress wrote the CARES Act, they made sure Social Security recipients who don’t file taxes would also get COVID-19 stimulus payments. Earlier this week, the IRS decided to make it harder on those Americans and force them to file tax returns. President Donald Trump’s administration set the agency straight on Wednesday.

On March 30, the IRS updated its website to add that Social Security recipients would have to file simple tax returns if they wanted stimulus money. Sec. 6428, paragraph 5, section B, subsection i and ii of the CARES Act specifically states otherwise, so lawmakers quickly pushed back.

Two days after the IRS announced the change, the Trump Administration put a stop to it. On April 1, Treasury Secretary Steve Mnuchin released a statement making it clear that people who receive Social Security would not have to file tax returns.

The IRS updated its website and tweeted a clarification shortly after the secretary made his statement.

What that means is, if you’re a Social Security beneficiary who doesn’t normally file taxes, you won’t have to start now.

Why the IRS thought they could make up a rule that was in direct conflict with the CARES Act is unclear. The change they tried to make would have forced retirees to take unnecessary steps to receive the money they were promised — income they need to help them through the COVID-19 crisis. Fortunately, the Trump Administration straightened it out.

~Here’s to Your Financial Health!

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