ABSTRACT

CARES Act Economic Impact Payments for Veterans Not Required to File Tax Returns [Updated August 19, 2020]   [open pdf - 602KB]

From the Overview: "The Veterans Benefits Administration (VBA), within the Department of Veterans Affairs (VA), offers two cash benefit programs for disabled or low-income veterans and their dependents: disability compensation and pension. The monetary benefits provided by both of these programs are not counted as income for tax purposes and hence are not subject to the federal income tax. As a result, some VA beneficiaries are not required to file federal income tax returns because their income for tax purposes is below the minimum filing threshold. These veterans and their beneficiaries generally qualify for the Economic Impact Payments (EIPs) provided in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act; P.L. 116-136), but their lack of an income tax return has raised complications for the Internal Revenue Service (IRS) in determining how to distribute these payments. (The IRS refers to the direct payments enacted under the CARES Act and issued in 2020 as economic impact payments. The statute refers to them as 2020 recovery rebates. Some media reports call them 'stimulus payments.')"

Report Number:
CRS Insight, IN11375
Author:
Publisher:
Date:
2020-08-19
Series:
Copyright:
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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