Veterans Affairs recipients to receive automatic economic impact payments

By Alistair M. Nevius, J.D.

Recipients of Veterans Affairs benefits were added to the list of individuals who will automatically receive economic impact payments, the IRS announced on Friday (IR-2020-75). They join recipients of Social Security retirement and disability payments, Railroad Retirement benefits, and Supplemental Security Income as people who will automatically receive an economic impact payment with no further action required on their part. The IRS says the timing of the payments is still being worked out and that additional programming needs to be done.

Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136, eligible individuals will receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples. Parents also receive $500 for each qualifying child.

The IRS worked with the Department of Veterans Affairs, Treasury, and the Bureau of Fiscal Services to determine how to make automatic payments to Veterans Affairs benefits recipients if they do not file tax returns.

As with other recipients of economic impact payments who do not file tax returns, eligible veterans with qualifying children will need to take an additional step to get the $500 child payment quickly. They will need to visit a special page on the IRS website and enter the required information about the child(ren) in the section labeled “Non-Filers: Enter Payment Info Here.” Otherwise, they will receive the $500 payment at a later date.

For more news and reporting on the coronavirus and how CPAs can handle challenges related to the pandemic, visit the JofA’s coronavirus resources page.

For tax-related resources, visit the AICPA’s Coronavirus (COVID-19) Tax Resources page.

— Alistair M. Nevius, J.D., (Alistair.Nevius@aicpa-cima.com) is the JofA’s editor in chief, tax.

RESOURCES

Keeping you informed and prepared amid the coronavirus crisis

We’re gathering the latest news stories along with relevant columns, tips, podcasts, and videos on this page, along with curated items from our archives to help with uncertainty and disruption.

SPONSORED REPORT

Getting leases in line

ASC Topic 842 is a relatively simple standard that can mean profound changes for organizations with leases. This report examines what makes this standard challenging and describes new ways for CPAs to add value.