Federal Benefit Payments Are Going All-Electronic

Source: U.S. Department of the Treasury, Financial Management Service
Learn more at www.godirect.org.

The U.S. Department of the Treasury now requires all federal benefit and nontax payments to be paid electronically. People applying for Social Security, Veterans benefits or other federal benefits on or after May 1, 2011, will receive their payments electronically starting with their first payment. People currently receiving federal benefit checks will need to switch to an electronic payment option by March 1, 2013.

Those who do not choose an electronic payment option at the time they apply for federal benefits or those who do not switch by the deadline will receive their benefit payments via the Direct Express^® Debit MasterCard^® card, so they will not experience any interruption in payment. People who are already receiving benefit payments electronically do not need to take action. They will continue to receive their payment as usual on the payment day.

Having federal benefits paid electronically by direct deposit into the bank or credit union account of one's choice or into a Direct Express^® card account is safer, faster and more reliable than receiving paper benefit checks. In 2010, more than 540,000 Treasury-issued checks were reported lost or stolen, and had to be reissued.

With direct deposit, the Treasury Department sends an electronic message to one's bank or credit union account on the usual payment day with the exact amount of the benefit payment from Social Security, VA or other federal agency.  People don’t have to worry about their money being stolen out of their mailbox and there’s no need to make a trip to cash or deposit a check. Plus, it’s better for the environment and saves taxpayer dollars.

Partner Update: IRS

Where’s My Refund?—one of IRS’ most popular online features—gives taxpayers access to information about the status of their individual federal income tax refunds. This is regardless of whether they ask IRS to direct deposit their refunds to one, two or three accounts; apply any or all of their refund toward the purchase of U.S. Savings Bonds, or; mail them paper checks. Taxpayers can access Where’s My Refund? in English or Spanish at www.irs.gov. Taxpayers without internet access can get the same information by calling IRS’ Refund Hotline at 1-800-829-1954.

Where’s My Refund? is convenient
Taxpayers can use Where’s My Refund? to verify when their refunds are scheduled for direct deposit or mailing. Taxpayers can also find out if their refund, or a portion of their refund, will be reduced to offset an outstanding balance with the IRS or other government agencies.

How Where’s My Refund? works
Taxpayers can access Where’s My Refund? from a link on the front page of IRS.gov. Easy online instructions and prompts guide taxpayers.

Search results include information about:

• “Refund” returns received and in processing;
• “Refund” returns received and under review;
• The expected mailing dates or direct deposit dates of refunds (in the case of split refunds,

Where’s My Refund? will confirm the refund was split but will not specify the amount deposited to each account or to which accounts deposits were made);

• Errors that changed the amount of refunds;
• Refund offsets to other government agencies;
• Processing delays due to other tax liabilities, SSN mismatches, etc; and
• Refunds returned to IRS as undeliverable.

Where’s My Refund? only contains information about returns showing a refund due the taxpayer, i.e., taxpayers filing returns with balances due or credit-elects cannot obtain information.

Refunds and Offsets
Through Where's My Refund?, taxpayers have access to information about their tax refunds and any offsets. Electronic filers can access their refund information within 72 hours of submitting their returns; paper filers can use Where’s My Refund? three to four weeks after mailing their returns. In the case of refund offsets, Where’s My Refund? advises taxpayers about any IRS or Financial Management Service (FMS) adjustments to refund amounts for math errors, offsets, etc., and provide telephone numbers if taxpayers want additional information. This is in addition to notices from IRS or FMS explaining in detail any refund adjustments or offsets. This information is available in both English and Spanish.


Sample Refund and Offset messages
“We are sorry. We cannot provide any information about your refund. It can take up to 3 weeks to process your return. Please wait at least one week before you log-on again to check the status of your refund.”  This message appears for all returns that have not progressed far enough in IRS processing for our system to provide a status. For e-filed returns, this message could appear up to 12 to 24 hours (or 48 hours on weekends) after taxpayers receive acknowledgements from their preparers, online transmitters, or the IRS.

“You should receive your refund by (date).” This is a projected date, providing there are no errors on the return or other delays. For e-filed returns, taxpayers should receive direct deposits the Friday before the projected date. E-filers expecting paper checks will receive their refunds a week after the projected date.

“Your refund may be reduced to pay a past due obligation such as child support, another federal agency debt, or state income tax.” This message is displayed when there is an indication from FMS that the taxpayer’s refund, or a portion of their refund, may be offset to pay a past due obligation to another governmental entity. If this applies, FMS will send a notice informing the taxpayer of any offset. The details of the debt are not provided to the IRS. Taxpayers should direct their inquiries regarding the offset or debt to the agency identified on the notice. 

“Your refund has been reduced by $ [Offset Amount] to pay a past due obligation such as child support, another federal agency debt, or state income tax.” This message is displayed when we receive an update from FMS that an offset has actually occurred. If this applies, FMS will send a notice informing the taxpayer of the offset. The notice will indicate to which agency debt the offset was applied. The FMS phone number is also provided in the case the notice has not been received by the taxpayer.

Refund Date Projections
IRS projects the refund date using the best available information, but variances may occur due to the timing of direct deposits through the banking system and mail delivery for paper checks. Taxpayers may receive direct deposits on e-filed returns a few days earlier than the posted dates. Taxpayers checking their mailboxes for refunds may receive their checks a few days later.

Thanks to community partner Regis Bodnar for sharing this IRS update.

Senior Safety

The Pennsylvania Resource Council has created a brochure: Sure Bets for Senior Safety-Protect Older Persons from Potentially Dangerous Hazards in the Home. It features safety tips, warnings about household chemicals, and contact information for local and national organizations.

To view or print the PDF brochure, click here.

End of Life Discussion

A recent article in the Pittsburgh Tribune-Review highlights the Pennsylvania Department of Aging's effort to encourage Pennsylvanians to talk to their loved ones about end-of-life decisions. The agency has just released a series of "Just Talk About It" videos-filmed in Pittsburgh. The article emphasizes the importance of talking about end-of-life decisions before a critical illness happens.

Full article by Chris Togneri.

Underinsured or Uninsured? A Guide to Health Care Resources in Allegheny County

The Allegheny County Health Department has recently updated and expanded its directory of local health centers and clinics that serve people with minimal or no health insurance.

The directory has been expanded to include an improved listing of dental services as well as other resources such as the Greater Pittsburgh Community Food Bank, Ways to Work and Gilda’s Club, which offers free support groups and programs for those living with cancer and their loved ones. This Guide may be duplicated and distributed in your work with community members.

A Few Good Articles

If they haven’t already crossed your desk, you may enjoy these articles on book clubs, golden years collection development, and a cooperative model for services to older adults.

Party On! at Your Book Discussions: Shouldn't a book club be about the fun of sharing?
American Libraries | July 2010

Collection Development: The New Golden Years
Library Journal | July 2010

A Senior Program Grows in Brooklyn: Brooklyn Public Library's Service to the Aging
Public Libraries | September/October 2010