Economic Impact Payments Belong To Recipients; The Internal Revenue Service (IRS) instructs nursing homes and other medical-care facilities not to request for Economic Impact Payments. As per the details, the IRS says that Economic Impact Payments belong to the recipients, not the organizations providing the medical care. It was observed by the agency that many individuals and businesses were taking advantage of vulnerable populations who received the Economic Impact Payments. Therefore, the IRS made it clear that Economic Impact Payments for Recipients is not meant for the medical care centers.
What Should Hospital Do If They Receive Stimulus Check Or Deposit Of Recipients?
Economic Impact Payments (EIP) in USA is meant for the recipients of medical-care only, not intended for the medical organizations. Even if the nursing home, medical service provider or any other medical facility receives the recipient’s payment, they are advised to deliver it to the individual. So, if any medical organization receives Economic Impact Payments intended for the individual either directly or indirectly by direct deposit or check, they should not keep it.
Economic Impact Payments for Recipients, Not For Medical Institutes
- Economic Impact Payments are not considered as a resource for purposes to determine eligibility for Medicaid and supplementary federal programs for a period of 12 months from receipt.
- Furthermore, these payments do not count as ‘income’ to determine eligibility for such programs.
- The IRS further noted in the alert that these payments do not count as ‘resources’ that have to be turned over by benefit recipients.
- The example of benefit recipients also covers residents of nursing homes to whom Medicaid provides care.
- The IRS considers these Economic Impact Payments for recipients as an advance refund for 2020 taxes. Therefore, these are regarded as a tax refund for benefits purposes.
Economic Impact Payments for Social Security Recipients
- A special FAQs Page has been designed by the Social Security Administration (SSA) to answer the question related to Economic Impact Payments for Social Security Recipients.
- A representative payee is only in charge for management of Social Security or Supplemental Security Income (SSI) benefits, as per the Social Security Act.
- Representative payees can also get help from the FAQs for handling administration of Economic Impact Payments for recipients.
- Economic Impact Payment is not considered as Social Security or Supplemental Security Income (SSI) benefits. However, it to the Social Security or SSI beneficiary.
- A representative payee should do discussion with the beneficiary regarding Economic Impact Payments for recipients.
- The representative payee is instructed to provide the EIP to the beneficiary if the beneficiary wants to use the EIP independently.
Form 1040 Instructions Regarding EIP to Recipients, Not Hospitals
The IRS further says that certain specific information in the Form 1040 instructions are applied to Economic Impact Payments. IRS is soon to launch electronic filing of Form 1040-X, starting late summer 2020. Not only this, a new Form 1040-SR for seniors has also been launched that will serve as an alternate filing option for them. Coming back to the topic, these EIP instructions can be found on the Form 1040 and are stated here:
Any refund you receive can’t be counted as income when determining if you or anyone else is eligible for benefits or assistance, or how much you or anyone else can receive, under any federal program or under any state or local program financed in whole or in part with federal funds. These programs include Temporary Assistance for Needy Families (TANF), Medicaid, Supplemental Security Income (SSI), and Supplemental Nutrition Assistance Program (formerly food stamps). In addition, when determining eligibility, the refund can’t be counted as a resource for at least 12 months after you receive it.
If you need any further details about Economic Impact Payments as well as representative payees involving Social Security and Supplemental Security Income benefits, please contact our team. It must be noted that the IRS is also sending EIP in the form of debit cards, instead of checks or direct deposit. We are serving our clients to provide the best and latest information about Economic Impact Payments for Recipients.