IRS Alert: Economic Impact Payments Belong to Recipient, Not Nursing Homes or Care Facilities

The IRS alerted nursing homes and other care facilities that Economic Impact Payments (EIPs) belong to the recipients, not the organizations providing the care. The IRS issued this reminder following concerns that people and businesses may be taking advantage of vulnerable populations who received the EIPs.

The payments are intended for the recipients, even if a nursing home or other facility or provider receives the person's payment, either directly or indirectly by direct deposit or check. The Social Security Administration (SSA) has issued FAQs on this issue, including how representative payees should handle administering the payments for the recipient. The IRS also noted the Economic Impact Payments do not count as resources that have to be turned over by benefit recipients, such as residents of nursing homes whose care is provided for by Medicaid. The Economic Impact Payment is considered an advance refund for 2020 taxes, so it is considered a tax refund for benefits purposes.

Additional information about EIPs and representative payees involving Social Security and Supplemental Security Income benefits can be found on SSA's website and on the IRS Website.