COVID-19 and Direct Payments to Individuals: Economic Impact Payments (EIPs) for Social Security and Supplemental Security Income Beneficiaries

COVID-19 and Direct Payments to Individuals: Economic Impact Payments (EIPs) for Social Security and Supplemental Security Income Beneficiaries

INSIGHTi
COVID-19 and Direct Payments to
Individuals: Economic Impact Payments
(EIPs) for Social Security and Supplemental
Security Income Beneficiaries
Updated November 16, 2020
The Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136) provides emergency
relief measures in response to the Coronavirus Disease 2019 (COVID-19) pandemic. Section 2201 of the
CARES Act provides recovery rebates for most individuals, structured as automatical y advanced tax
credits disbursed by the Treasury Department. The Internal Revenue Service (IRS) refers to the payments
made in 2020 as economic impact payments (EIPs). (These payments are also known as “stimulus
checks” or “stimulus payments.”) By late September 2020, more than 160 mil ion payments totaling
almost $275 bil ion had been disbursed. This Insight addresses EIPs from the perspective of Social
Security and Supplemental Security Income (SSI) beneficiaries.
Overview of Economic Impact Payments (EIPs)
Eligible individuals can receive an EIP of $1,200 per person ($2,400 for married joint filers) via direct
deposit, check by mail, or prepaid debit card (including Direct Express debit card and EIP card). Eligible
individuals can also receive an additional $500 for each child under 17 years old who is eligible for the
child tax credit (hereinafter qualifying child).
The EIP is reduced by $5 for every $100 of adjusted gross income (AGI) above $75,000 for individuals,
$112,500 for heads of households, and $150,000 for married joint filers. Consequently, it is not payable to
individuals (with no qualifying children) with AGI above $99,000 or married joint filers (with no
qualifying children) with AGI above $198,000. A married couple with two eligible children is ineligible
for an EIP with AGI above $218,000.
Nonresident aliens, individuals who could be claimed as a dependent by another taxpayer, and estates or
trusts are ineligible for the EIP. Taxpayers must have provided a work-authorized Social Security number
(SSN) for themselves, their spouse (if married filing jointly), and any qualifying child, with some
exceptions for adopted children and military families.
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The EIP is automatical y issued to eligible individuals in 2020 based on their 2019 federal income tax
return. For eligible individuals who did not file a 2019 return, the payment is automatical y issued based
on 2018 return information. For eligible individuals who were Social Security beneficiaries in 2019 and
who were not required to file a federal tax return because their incomes were below the filing threshold,
the law permits the IRS to automatical y issue the $1,200 payment using the information from their 2019
Social Security Benefit Statement.
The EIP is not subject to federal income tax. The payment is not treated as income, or as a resource for a
12-month period, in determining an individual’s eligibility or assistance amount under any federal y
funded public program. Receiving an EIP in 2020 does not affect a taxpayer’s 2020 income tax liability or
tax refund.
EIPs for Social Security and SSI Beneficiaries
Al Social Security beneficiaries—retired workers, disabled workers, eligible family members, and
survivors—and SSI recipients are eligible for the $1,200 EIP unless they are claimed as a dependent on a
taxpayer’s return or do not meet the other eligibility requirements. The term Social Security beneficiaries
includes Social Security Disability Insurance (SSDI) beneficiaries. The payment is not counted as
income, or as a resource for a 12-month period, in determining an individual’s eligibility for SSI or the
amount of the SSI payment.
For Social Security and SSI beneficiaries with a representative payee, the EIP is issued to the
representative payee. Check payments typical y include a designation to denote the beneficiary’s name.
Information provided by the Social Security Administration (SSA) indicates that an EIP belongs to the
beneficiary; the representative payee is to provide the EIP to the beneficiary and, if requested, may
provide assistance in using the EIP, outside the role of a representative payee.
Social Security and SSI Beneficiaries Who Filed a Tax Return for 2018 or 2019
Eligible individuals who filed an income tax return for 2018 or 2019, including Social Security and SSI
beneficiaries, received the $1,200 EIP and the additional $500 per qualifying child without taking any
further action. However, if a qualifying child was not listed on a 2018 or 2019 income tax return, but wil
be included on a 2020 tax return, then eligible individuals wil general y receive the additional $500 per
qualifying child when they file their 2020 income tax return in early 2021.
Social Security and SSI Beneficiaries Who Did Not File a Tax Return for 2018 or 2019
Social Security and SSI beneficiaries who did not file a tax return for 2018 or 2019 and have not received
an EIP (for themselves or for their spouse or qualifying children) may be able to use the IRS Non-Filers:
Enter Payment Info Here tool to register for a payment. IRS press releases on October 5, 2020, and
October 23, 2020, announced that the deadline to register for an EIP has been extended to November 21,
2020, at 3 p.m. EST. Individuals who miss this deadline may claim their payments by filing a tax return
for 2020 (in early 2021).
Social Security and SSI Beneficiaries Who Do Not Have Qualifying Children and Who
Did Not File a Tax Return for 2018 or 2019
Social Security and SSI beneficiaries who do not have qualifying children under 17 years old, and who
did not file a tax return for 2018 or 2019, were not required to take any action to receive the EIP. The
Treasury Department, SSA, IRS, and Bureau of the Fiscal Service arranged for these beneficiaries to

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automatical y receive the $1,200 EIP by direct deposit, Direct Express debit card, or paper check, just as
they would normal y receive their monthly benefits.
Social Security and SSI Beneficiaries Who Have Qualifying Children and Who Did Not
File a Tax Return for 2018 or 2019
Social Security and SSI beneficiaries who did not file an income tax return for 2018 or 2019 and who
have qualifying children automatical y received the $1,200 EIP. However, those beneficiaries were
required to take further action to receive the additional $500 per qualifying child. The IRS initial y
announced that Social Security and SSI beneficiaries needed to provide information about qualifying
children by April 22, 2020, and May 5, 2020, respectively, using the IRS Non-Filers: Enter Payment Info
Here tool. On August 14, 2020, the IRS and SSA announced that the deadline was changed to September
30, 2020, for beneficiaries who had not already used the IRS nonfilers tool to provide information about
their qualifying children. SSA indicated that they may enter only non-Direct Express bank account
information to receive the payment by direct deposit, or they may leave bank information blank to receive
the payment by paper check. Beneficiaries who missed the September 30 deadline now have until
November 21 to provide information about their qualifying children.
New Social Security and SSI Beneficiaries Since January 1, 2020, Who Did Not File a
Tax Return for 2018 or 2019
Social Security and SSI beneficiaries who first started receiving benefits since January 1, 2020, and who
did not file an income tax return for 2018 or 2019 were instructed to use the IRS Non-Filers: Enter
Payment Info Here tool by October 15, 2020, to receive their own $1,200 EIP and the additional $500 per
qualifying child. SSA indicated that they may enter only non-Direct Express bank account information to
receive the payment by direct deposit, or they may leave bank information blank to receive the payment
by paper check. SSA further indicated that IRS planned to issue EIPs to Social Security and SSI
beneficiaries who started receiving benefits since January 1, 2020, during the first week of November
2020.
Additional Information
For additional CRS products and other resources related to the CARES Act EIPs, see CRS Report
R46415, CARES Act (P.L. 116-136) Direct Payments: Resources and Experts, coordinated by Margot L.
Crandal -Hollick.

Author Information

Paul S. Davies
William R. Morton
Specialist in Income Security
Analyst in Income Security

Disclaimer

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IN11290 · VERSION 8 · UPDATED