For many veterans
and widows of veterans, the Compensation and/or Service Pension benefits they
receive are a lifeline to making ends meet and getting the care they need. An added benefit to these programs is the tax-free
nature of the payments they are receiving.
Ordinarily, not having to include these payments on your annual tax
return or not having to file a tax return at all because they are not
considered taxable income is advantageous.
However, the Covid-19 pandemic has turned most things upside down.
Cares Act Payment
In the Coronavirus Aid, Relief and Economic Security (CARES) Act the federal government implemented provisions to help eligible individuals navigate the financial hardships being inflicted by the Covid-19 pandemic. Among those benefits were $1,200 stimulus checks for eligible adults. Eligible families will also receive an additional $500 stimulus check for each child under the age of 17. The exact amounts of the payments were to be determined based upon income limitations determined based upon the 2018- or 2019-income tax returns.
No Income Tax Return, No CARES Act Payment?
Therein lies a major concern. Many of the people receiving assistance through the Compensation and/or Service Pension do not file an income tax return. Without an income tax filing to be identified as a recipient, the concern was that many veterans and widows of veterans would be overlooked for the Cares Payment. This is something the Veterans Administration did not want to see happen.
Veterans and Widows of Veterans Will Automatically Receive CARES Act Payments
To solve that problem the Department of Veterans Affairs began working with the Internal Revenue Service (“IRS”) to make sure that veterans and their beneficiaries who receive Compensation and Pension will receive the Economic Impact Payment without any addition action being required on their part https://www.irs.gov/newsroom/veterans-affairs-recipients-will-receive-automatic-economic-impact-payments-step-follows-work-between-treasury-irs-va. “Since many VA recipients typically aren’t required to file tax returns, the IRS had to work with these other government agencies to determine a way to quickly and accurately deliver Economic Impact Payments to this group,” said IRS Commissioner Chuck Rettig. While some additional programming is being done to make this happen, the IRS expects recipients of Compensation and Pension to “quickly and easily receive these $1,200 payments” https://www.irs.gov/newsroom/veterans-affairs-recipients-will-receive-automatic-economic-impact-payments-step-follows-work-between-treasury-irs-va.
Beneficiary Claims Still Need to Be Filed
For veterans and widows of veterans, you may be entitled to an additional $500 for qualifying children under the age of 17. Even though you will automatically receive the $1,200, an extra step will be required to receive the additional beneficiary payment. This additional steps requires you to go to https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here and complete the information required. The IRS recommends that those able to complete this process do so soon so they may be able to get earlier delivery of their child payments. If the process is not completed soon the $500 per qualifying child will be received at a later date depending upon when the registration process is completed.
If you or your family has veterans benefit, estate planning or elder law questions, contact the experienced St. Peters Elder Law Attorneys at Jones Elder Law. Get the information you need to make crucial decisions during the ongoing pandemic. If we can help guide you, contact our St. Charles Elder Law Firm at (636) 812-2575 and ask to schedule a call or virtual consultation. For your safety and ours we have developed the Minimal Contact Planning process for use while the Covid-19 virus remains a concern.
