Congress passed a $2 trillion stimulus bill to address economic issues caused by the Coronavirus (COVID-19) pandemic. The bill includes direct payments—a check or direct deposit—for most Americans.
Federal officials are hoping to begin sending payments as early as April 2020. Individuals are eligible for up to $1,200 and couples would receive up to $2,400, plus $500 per eligible child. This Washington Post article provides a tool to calculate your stimulus payment as well as answers to frequently asked questions.
Here are three things for ABLEnow customers to know:
- Many Americans with disabilities are eligible for a stimulus payment. According to U.S. Internal Revenue Service (IRS), Social Security beneficiaries who are not typically required to file tax returns will not need to file to receive a payment. Instead, payments will be automatically deposited into their bank accounts. However, some people who typically do not file returns will need to submit a simple tax return to receive the economic impact payment. Families will receive up to $500 for each eligible child they claim as a dependent on their tax return. But adults who can be claimed as a dependent by someone else may not receive a payment.
- Stimulus payments of this kind are not treated as income by federal programs (or state or local programs which are financed with federal funds) and are disregarded as resources for 12 months (26 U.S. Code § 6409). According to The Arc, this means that people with disabilities can accept these payments without putting Supplemental Security Income (SSI), Supplemental Nutrition Assistance Program (SNAP), and other benefits at risk.
- Many Americans will need to use their stimulus payment for urgent expenses. But ABLE-eligible individuals may want to consider saving all or a portion of their payment in a tax-advantaged ABLEnow account. If funds aren’t needed immediately, the stimulus is an opportunity to build an emergency fund, invest for the future, and have money available on your ABLEnow Card when you need it most. View these FAQs on stimulus payments and ABLE accounts (PDF) created by the Virginia Board for People with Disabilities.
The vast majority of Americans do not need to take any action. The IRS will calculate and automatically send the payment to those who are eligible. Additional details will be posted to irs.gov/coronavirus.
Seek the advice of a professional on maximizing the benefits of an ABLE account. Eligible individuals may open an ABLEnow account securely and efficiently online.
Last updated May 29, 2020