IRS Stimulus Checks: Eligibility & How To Claim

Millions of Americans received stimulus checks from the IRS during the COVID-19 pandemic. These payments, officially known as Economic Impact Payments (EIPs), were designed to provide financial relief. This article explains what these checks were, who was eligible, how they were distributed, and what to do if you missed out.

Key Takeaways

• IRS stimulus checks were federal payments to boost the economy during the COVID-19 pandemic.
• Eligibility varied based on income, filing status, and other factors for each of the three rounds of payments.
• Most eligible individuals received their payments automatically via direct deposit or mail.
• If you missed a payment you were eligible for, you might be able to claim it as a Recovery Rebate Credit on your tax return.
• The IRS has specific procedures for handling uncashed checks and reporting issues.

Introduction

During the unprecedented economic turmoil caused by the COVID-19 pandemic, the U.S. government enacted several relief measures. Among the most significant were the Economic Impact Payments, commonly referred to as stimulus checks. These checks were distributed by the Internal Revenue Service (IRS) to provide immediate financial assistance to individuals and families across the United States. Understanding the nuances of these payments—who received them, why they were issued, and how they were distributed—is crucial for anyone who was affected by this initiative.

What Were IRS Stimulus Checks and Why Were They Issued?

IRS stimulus checks, or Economic Impact Payments (EIPs), were government-issued funds sent directly to eligible taxpayers. They were part of broad economic stimulus packages enacted by Congress in response to the severe economic downturn caused by the COVID-19 pandemic, beginning in 2020.

The primary goal of these payments was multifaceted:

• Economic Stabilization: To inject money directly into the economy, encouraging consumer spending and supporting businesses during a period of widespread shutdowns and job losses.
• Financial Relief: To provide a financial safety net for individuals and families struggling with lost income, increased expenses, and general economic uncertainty.
• Boosting Demand: To counteract a sharp decline in consumer demand by increasing the purchasing power of households.

Three main rounds of stimulus payments were authorized under different legislative acts:

1. CARES Act (Coronavirus Aid, Relief, and Economic Security Act): Signed into law in March 2020, this was the first major stimulus package.
2. COVID-19 Relief Act: Enacted in December 2020, this provided a second round of payments.
3. American Rescue Plan Act: Signed in March 2021, this authorized the third and final round of payments.

Each round had specific eligibility criteria, payment amounts, and distribution timelines.

Who Was Eligible for Stimulus Checks?

Eligibility for stimulus checks was not universal and depended on several factors that varied with each payment round. The IRS used tax return information to determine eligibility and calculate payment amounts. Key factors included:

• Income Thresholds: Payments were phased out for individuals and couples earning above certain adjusted gross income (AGI) levels. Higher earners typically received reduced or no payments.
• Filing Status: Whether an individual filed as single, married filing jointly, or head of household influenced the amount received.
• Dependents: For the second and third rounds, payments included additional amounts for qualifying children and other dependents, though eligibility for dependents was more restrictive in earlier rounds.
• Social Security Number (SSN): Generally, recipients needed a valid SSN. This initially excluded many households with mixed immigration statuses, although later legislation expanded eligibility to include some individuals with Individual Taxpayer Identification Numbers (ITINs) who had qualifying dependents with SSNs.
• Residency: Recipients generally needed to be U.S. citizens or resident aliens and could not be claimed as a dependent on someone else's return.

Round 1 (CARES Act): Up to $1,200 per adult, $500 per child

• Individuals: Up to $1,200 if AGI was $75,000 or less (single filers) or $150,000 or less (married filing jointly).
• Dependents: No additional payment for dependents under age 17.

Round 2 (December 2020): $600 per adult, $600 per child

• Individuals: Up to $600 if AGI was $75,000 or less (single), $112,500 or less (head of household), or $150,000 or less (married filing jointly).
• Dependents: $600 for each qualifying child under age 17.

Round 3 (American Rescue Plan): $1,400 per person

• Individuals: Up to $1,400 if AGI was $75,000 or less (single), $112,500 or less (head of household), or $150,000 or less (married filing jointly). The payment was reduced for those with higher incomes.
• Dependents: $1,400 for each qualifying child and other dependents (expanded to include older dependents and those with ITINs if they had a dependent with an SSN).

Note: Income thresholds were higher for married couples filing jointly and heads of household.

How Were Stimulus Checks Distributed?

The IRS implemented several methods to distribute the Economic Impact Payments efficiently:

• Direct Deposit: This was the fastest method. Payments were sent directly to the bank accounts linked to the taxpayer's information from their most recent tax return or other financial data the IRS had on file.
• Paper Checks: For individuals without direct deposit information on file, or if the direct deposit failed, payments were issued as physical checks mailed to the address listed on their tax return.
• Debit Cards (E-cards): In some cases, particularly for the first round, payments were loaded onto prepaid debit cards issued by Treasury's Bureau of the Fiscal Service. These cards were mailed to recipients.

The IRS also established a tool called "Get My Payment" on its website, which allowed taxpayers to track the status of their payment and view their distribution method. This was invaluable for many who were anxious about receiving their funds. — Fayetteville, NC Weather Radar: Real-Time Updates

Timeline of Distribution:

• Round 1: Began distribution in April 2020 and continued for several months.
• Round 2: Began distribution in late December 2020.
• Round 3: Began distribution in March 2021 and continued through 2021 and into 2022 for some delayed payments.

What If You Didn't Receive Your Stimulus Check?

If you were eligible for a stimulus payment but did not receive it, or if you received less than the full amount you were entitled to, you may have been able to claim the missing amount as a Recovery Rebate Credit (RRC) on your 2020 or 2021 federal tax return. The RRC allowed eligible taxpayers to claim any portion of the stimulus payments they were due but did not receive. It was crucial to file the correct tax return and claim this credit to recover the missed funds.

Claiming Missing Stimulus Payments: The Recovery Rebate Credit

The Recovery Rebate Credit (RRC) was a vital mechanism for ensuring that eligible individuals received the full financial assistance intended by the stimulus legislation. If you didn't receive one or more of your stimulus payments, the RRC allowed you to reconcile the difference when filing your federal income tax return.

How it Worked:

The RRC is a refundable tax credit. This means if the credit amount reduces your tax liability to zero, you can still receive the remaining amount as a tax refund. You needed to calculate the credit amount based on the stimulus payments you were eligible for but did not receive and claim it on:

• Form 1040, Schedule 8812 (Credits for Estimated Tax Payments) for the tax year 2020.
• Form 1040, Schedule 8812 (Credits for Estimated Tax Payments) for the tax year 2021.

Steps to Claim the RRC:

1. Determine Eligibility: Confirm the total amount of stimulus payments you were entitled to for each of the three rounds based on your income, filing status, and dependents for the relevant tax year.
2. Verify Payments Received: Check your bank records for direct deposits, look for mailed checks or debit cards, and use the IRS "Get My Payment" tool (though it might no longer be fully functional for past years) or your IRS account to see what payments were issued.
3. Calculate the Difference: Subtract the total amount of stimulus payments you actually received from the total amount you were eligible to receive.
4. File Your Tax Return: Report this difference as the Recovery Rebate Credit on the appropriate schedule (Schedule 8812) attached to your Form 1040 for the tax year 2020 or 2021.

Important Note: If you received more stimulus money than you were entitled to, you generally did not have to pay it back. However, if you received less, the RRC was your way to claim the difference.

IRS Stimulus Check FAQs

**Q1: What was the deadline to claim the Recovery Rebate Credit? **A1: The deadline to claim the Recovery Rebate Credit was typically tied to the tax filing deadline for the respective tax year. For the 2020 tax year, this was generally April 15, 2021 (with extensions). For the 2021 tax year, it was April 18, 2022 (with extensions). You could also claim it on an amended return within three years of the due date of the original return.

**Q2: Can I still get a stimulus check if I didn't file taxes? **A2: If you were eligible for a stimulus payment and did not file a tax return, you may have been able to claim it by filing a tax return for the relevant year (2020 or 2021) to claim the Recovery Rebate Credit. Non-filers who were eligible for payments were encouraged to file a tax return to receive their money.

**Q3: My address changed. How did I receive my stimulus check? **A3: Stimulus checks were typically mailed to the last known address on file with the IRS from your most recent tax return. If you moved after filing, you might have missed a mailed check. You could try to update your address with the IRS or USPS, but if the check was already sent, you would have needed to contact the IRS to inquire about it, or claim it via the Recovery Rebate Credit if it was lost or undelivered.

**Q4: What should I do if I received a stimulus check for the wrong amount? **A4: If you received less than you were eligible for, you should have claimed the difference using the Recovery Rebate Credit on your 2020 or 2021 tax return. If you received more than you were eligible for, you generally did not need to return the excess amount. If you received a check but were not eligible, the IRS could ask for it back, especially if it was sent in error.

**Q5: Are there any other stimulus programs from the IRS? **A5: The main rounds of Economic Impact Payments concluded with the American Rescue Plan in 2021. However, the IRS administers various tax credits and benefits that provide financial relief, such as the Child Tax Credit, Earned Income Tax Credit, and others that may have been enhanced during the pandemic. It's always best to check the IRS website for current programs and benefits you might be eligible for. — Las Vegas Weather In April: What To Expect

**Q6: What if my stimulus check was lost or stolen? **A6: If a paper stimulus check was lost, stolen, or not received, you would need to contact the Bureau of the Fiscal Service (part of the U.S. Treasury) to request a replacement. They have a process for stopping payment on lost checks and issuing a new one. If you filed a tax return and claimed the Recovery Rebate Credit for a payment you never received, the IRS would issue the credit amount as part of your tax refund.

Conclusion

The IRS stimulus checks represented a significant governmental response to an unprecedented economic crisis. While distribution methods varied and eligibility criteria could be complex, these payments provided crucial financial support to millions of Americans. For those who did not receive the full amount they were due, the Recovery Rebate Credit offered a way to reclaim these funds by filing their federal tax returns. Staying informed about tax laws and available credits is essential for maximizing financial well-being.

If you believe you are owed stimulus money and haven't claimed it, consult a tax professional or visit the IRS website for guidance on filing your past due tax returns to claim the Recovery Rebate Credit. — Raymond James Stadium: Your Guide

Last updated: October 26, 2023, 10:00 UTC