Don't Mess With Taxes

Are you a retiree constantly checking your bank account for your third COVID-19 economic impact payment? The IRS says you should get it next week.

The Internal Revenue Service has some good news for the around 30 million Social Security recipients anxiously awaiting the latest COVID relief money

You should get your $1,400 economic impact payment, dubbed EIP3, next week.

The IRS' precise projection is that most of the third relief amounts, dubbed EIP3, will be sent electronically and show up in the recipients' accounts on April 7.

Perpetual payment challenge: Getting coronavirus relief amounts to older individuals has been an issue since the first economic impact payments went out last March.

The problem then was that many Social Security recipients don't have to file taxes, so the IRS had no records on them.

The issue was solved in large part by the IRS' online Non-Filer registration tool. The data entered at that website was used to distribute EIP1 and, in late December 2020/early January 2021, EIP2 amounts to those who didn't normally send in 1040s.

But not every eligible person, including many Social Security recipients, registered. Plus, there are regular changes to the database of those who get federal benefits. The IRS needed to receive that new information before it could issue COVID payments.

So while other EIP3 amounts were being distributed, the IRS was waiting for information directly from the Social Security Administration (SSA) on these older eligible individuals.

And waiting and waiting.

Congressional prodding, now processing: A letter to the SSA Commissioner from four Ways and Means Committee members apparently nudged that agency into action. On March 25, the day after that Congressional letter was sent, the IRS got the necessary data.

Now, says the IRS, it working through the multi-step process to review, validate and test the records to ensure eligibility and proper calculation of EIP3. If, fingers and toes crossed, no additional issues arise, the tax agency says that process should be completed by the end of this week.

Then the payments to Social Security recipients will go out, primarily as electronic direct deposits to financial accounts or as amounts added to existing Direct Express cards. Again, that should all happen, says the IRS, by next Wednesday, April 7.

The same updating and coronavirus relief payment delivery system also is underway for beneficiaries of Social Security survivor or disability (SSDI), Supplemental Security Income (SSI) and Railroad Retirement Board (RRB) beneficiaries who did not file a 2019 or 2020 tax return or did not use the Non-Filers tool.

Veterans waiting, too: Next up on the IRS' EIP3 delivery schedule is the amounts due military veterans.

The tax agency says it is reviewing data it has received on Veterans Affairs (VA) benefit recipients who do not regularly file tax returns. The IRS' best EIP3 delivery date estimate these VA beneficiaries is a mid-April disbursement.

VA and Social Security beneficiaries, as well as others who are eligible for this third economic impact payment, eventually will be able to track their relief money using the IRS Get My Payment online tool. That search option is updated for eligible individuals once the IRS has processed their payments.

But whoa up there, Social Security recipients eagerly awaiting your $1,400 payment. Don't click over there just yet. The IRS says Get My Payment won't be updated with your info until this coming weekend.

At least, though, the process is progressing.

You also might find these items of interest:

• COVID payments are on the way. So are related tax scams 
• May Day! Mayday! Don't fall for these 5 COVID-19 relief payment myths 
• Still waiting for your COVID payment? IRS has answers on what to do to get or track your money

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