Do SSI Beneficiaries Need to File a Tax Return to Get a Stimulus Check?

IRS has built an online tool non-filers can use to register for payment

by Mike DeSenne, AARP, Updated April 10, 2020  Comments: 0

After initially announcing that some individuals, including Social Security recipients who typically aren't required to file tax returns, would need to file a “simple” tax return to receive a stimulus payment, the IRS reversed course on April 1 after encountering criticism from AARP, lawmakers, seniors and other advocacy groups. The agency announced instead that Social Security recipients and railroad retirees who hadn't filed tax returns for 2018 or 2019 would automatically receive a $1,200 payment (the maximum for individuals) the same way they receive monthly benefits. The vast majority of Social Security recipients get benefits via direct deposit into a bank account.

In the absence of tax returns for 2018 or 2019, the IRS said it would look at Form SSA-1099 or Form RRB-1099 to get the information needed to distribute stimulus payments to Social Security recipients and railroad retirees. The tax forms, which show benefit income for the previous year, are mailed out every January. Social Security beneficiaries, including recipients of Social Security Disability Insurance (SSDI), receive SSA-1099 forms; railroad retirees get RRB-1099 forms.

Many SSI beneficiaries do not receive 1099 tax forms

SSI is administered by the Social Security Administration (SSA). The federal program benefits people who are 65 and older, blind or disabled, and who have very limited income and financial resources. SSI is funded by general tax revenue, not Social Security taxes.

The dilemma for those who rely solely on SSI is that they typically aren't required to file tax returns and they typically do not receive SSA-1099 forms. To help these individuals receive stimulus payments, the IRS has set up a registration tool on its website.

Available only on IRS.gov, the registration tool can be found by clicking this link or going to the IRS website and looking for “Non-filers: Enter Payment Info Here.” The tool asks for some basic information including name, address, Social Security number, and dependents. The IRS then confirms your eligibility, calculates how much you should receive, and sends a stimulus payment. For those people who enter bank account information, the IRS will deposit the payment directly into their accounts.  Otherwise, the payment will be sent in the mail. Using the tool will not result in any taxes being owed.

The IRS says it will continue look for ways to send stimulus payments automatically to SSI recipients and those who receive veterans disability compensation, pension or survivor benefits from the Department of Veterans Affairs and people who did not file a tax return for the 2018 or 2019. The agency says people in these groups can either use Non-Filers: Enter Payment Info option now or wait as the IRS explores possible automatic payment options for them. 

The SSA has said that economic impact payments won't count as income for SSI recipients, and the payments will be excluded from resource calculations for 12 months.

AARP urged IRS to waive filing requirement for SSI, VA

As it did with Social Security beneficiaries, AARP urged the IRS to make automatic stimulus payments to SSI and VA beneficiaries without the burden of filing any additional paperwork such as a tax return.

"On behalf of our 38 million members and all older Americans nationwide, AARP thanks you for your recent efforts to ensure Social Security beneficiaries are able to receive their economic impact payments automatically and without having to file a tax return,” said Nancy A. LeaMond, AARP's executive vice president and chief advocacy and engagement officer, in an April 3 letter to Treasury Secretary Steven Mnuchin. “As the IRS has noted, these payments are a ripe target for criminals who would defraud people of their money. It is so critical that the IRS reduce confusion and burdensome steps for people to receive these economic impact payments.

"For these reasons, we urge you to ensure that America's retired veterans and Americans who rely on Supplemental Security Income (SSI) are similarly able to receive their payments automatically. The economic stimulus payments provided by the CARES Act will provide much- needed lifelines to those who struggle to make ends meet, and we urge you to ensure VA and SSI beneficiaries receive their payments as quickly as possible and without unnecessary filing requirements."

The IRS is part of the U.S. Department of the Treasury.