Double Stimulus Payment Guidance

From The Arc of Indiana

The third round of COVID-19 Economic Impact/stimulus payments included payments for adults claimed as a dependent on their parent’s or guardian’s tax return. That payment should have been paid to the person who claimed an adult disabled family member as a dependent. However, adult dependents receiving SSI or SSDI also received a stimulus payment because they were sent to all SSI/SSDI recipients. This resulted in families getting two stimulus checks for the same individual. We knew someone would have to pay it back, now we know how. 

This link, Returning the Third Economic Impact Payment, provides information on how to return the additional money. If the adult dependent will continue to be counted as a dependent, they should be the one to send back the money. If they are no longer going to be counted as a dependent, the parent or guardian should send back the money. It is important to keep in mind that decision could impact the ability of an adult with a disability over the age of 26 to continue to be covered on their parent’s employer based health insurance as an adult disabled dependent. 

Indiana residents should return money to:
Kansas City Internal Revenue Service
333 W Pershing Rd.
Kansas City, MO 64108

There is also an issue with “Plus-up” payments. That is a separate issue that should be dealt with differently. Plus-up payments occurred when a stimulus payment was based on a 2019 tax return, but after a 2020 tax return was filed the IRS realized the filer qualified for additional stimulus funds. This link, Plus Up Payments, discusses this issue.

Stimulus payments may have been sent to individuals and parents or guardians as a direct deposit to a checking account or mailed as a check or debit card.

Questions? Contact The Arc of Indiana at 317-977-2375 or 800-382-9100 and ask to speak with a family advocate.