When the COVID-19 pandemic swept across the globe in early 2020, governments worldwide scrambled to implement measures to cushion the economic blow. In the United States, the response included the CARES Act, which authorized direct payments – commonly known as stimulus checks – to millions of Americans. For most, these $1,200 payments were a welcome, if modest, relief. However, for a significant and often overlooked population – those who are incarcerated – accessing these vital funds became a complex, frustrating, and often unfair battle.
This article delves into the saga of stimulus checks for incarcerated individuals, from the initial confusion and IRS misinterpretations to the landmark legal victories that affirmed their right to these payments. It also provides crucial information on how individuals who are or were incarcerated, or their families, can still claim the money they are rightfully owed.
The Genesis of Confusion: A Misinterpretation of Law
The CARES Act, signed into law on March 27, 2020, was designed to provide economic relief to a broad swath of the American public. It stipulated that most U.S. residents with an adjusted gross income below a certain threshold were eligible for a $1,200 payment (with additional amounts for dependents). Critically, the language of the Act did not explicitly exclude incarcerated individuals from receiving these payments.
Despite the clear omission of any such exclusion in the law itself, the Internal Revenue Service (IRS) soon adopted an unofficial stance that incarcerated people were ineligible. This position was initially communicated through frequently asked questions (FAQs) on the IRS website and in notices sent to some individuals. In fact, some incarcerated individuals who did manage to receive a payment found themselves receiving notices demanding the money back, threatening collection actions if it wasn’t returned. This "clawback" attempt created widespread alarm, confusion, and despair within correctional facilities and among the families of those inside.
The IRS’s rationale for this exclusion was never clearly articulated or legally sound. It appeared to stem from an administrative decision rather than a legislative mandate. For many, this administrative overreach felt like a deliberate act of discrimination, further marginalizing a population already deprived of many fundamental rights.
The Fight for Fairness: Legal Challenges and Advocacy
The IRS’s arbitrary exclusion did not go unchallenged. Advocates, legal aid organizations, and civil rights groups quickly recognized the injustice and began to mobilize. The American Civil Liberties Union (ACLU), alongside other legal organizations, took a leading role in challenging the IRS’s position.
The most prominent legal battle emerged from the class-action lawsuit Scholl v. Mnuchin, filed in the U.S. District Court for the Northern District of California. This lawsuit argued that the IRS’s policy violated the plain language of the CARES Act and constituted an unlawful administrative rule. The plaintiffs contended that Congress, had it intended to exclude incarcerated individuals, would have done so explicitly in the statute, as it has done in other benefit programs.
The legal arguments centered on fundamental principles:
- Plain Language Interpretation: The CARES Act’s text did not exclude incarcerated individuals. The IRS cannot add exclusions that Congress did not enact.
- Congressional Intent: The purpose of the stimulus payments was broad economic relief, and incarcerated individuals, many of whom have financial obligations outside of prison (e.g., child support, legal fees, family support) or will soon reenter society, also experience economic hardship.
- Equal Protection: While not the primary argument, the policy raised questions of fairness and equal treatment under the law.
On October 9, 2020, the U.S. District Court delivered a landmark ruling. Judge Phyllis J. Hamilton sided with the plaintiffs, issuing a preliminary injunction that prohibited the IRS and the Treasury Department from withholding stimulus payments based solely on a person’s incarcerated status. The court’s decision was clear: incarcerated individuals were, and always had been, eligible for the stimulus checks under the CARES Act.
Following this ruling, the IRS was compelled to reverse its policy. They updated their guidance, explicitly stating that "Economic Impact Payments cannot be denied to an eligible individual who is incarcerated." This was a monumental victory for civil rights and economic justice, affirming that even behind bars, individuals retain certain entitlements as U.S. citizens.
The Victory: Incarcerated Individuals ARE Eligible
The verdict was unequivocal: no individual should have been denied a stimulus check solely because they were incarcerated. This applies not only to the initial $1,200 payment (Economic Impact Payment 1 or EIP1) but also to subsequent stimulus payments (EIP2 and EIP3) if they met the other eligibility criteria.
This reversal meant that millions of dollars were potentially owed to incarcerated individuals who had been wrongfully denied. The challenge then shifted from proving eligibility to establishing a clear pathway for these individuals to claim their rightful payments.
How to Claim Your Stimulus Check Now
For many incarcerated individuals, or those who were incarcerated during the pandemic, the path to claiming their stimulus checks often involves filing a tax return, even if they had no taxable income. The stimulus payments were technically advance payments of a tax credit known as the Recovery Rebate Credit.
Here’s how individuals can still claim the $1,200 (and subsequent) stimulus payments:
File a Tax Return for the Relevant Year:
- For the $1,200 (EIP1): This payment was an advance of the 2020 Recovery Rebate Credit. If the individual did not receive it, they can claim it by filing a 2020 tax return (Form 1040 or 1040-SR). Even if they had $0 income, they can still file to claim this credit.
- For subsequent payments ($600 EIP2 and $1,400 EIP3): These were advances for the 2020 and 2021 tax years, respectively. If these were not received, they can be claimed by filing a 2020 tax return (for EIP2) or a 2021 tax return (for EIP3) using the same Recovery Rebate Credit mechanism.
Gather Necessary Information:
- Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN): This is essential.
- Last Known Address: This can be their prison address or the address of a trusted family member/friend if they were recently released.
- Bank Account Information (Optional): If they have access to a trusted bank account (e.g., through a family member) for direct deposit, this can expedite payment. Otherwise, a paper check will be mailed.
- Identity Protection PIN (IP PIN): If the individual has an IP PIN from the IRS, they will need it to file electronically.
Complete the Recovery Rebate Credit Worksheet:
- On Form 1040/1040-SR, there is a specific line and worksheet (usually in the instructions) to calculate and claim the Recovery Rebate Credit. This is where they will indicate the amount of stimulus payments they did not receive.
How to File:
- Paper Filing: This is often the most practical method for incarcerated individuals. The tax forms and instructions can be mailed to them, filled out, and then mailed to the IRS.
- Assistance from Family/Trusted Individuals: A family member or friend can help by obtaining the forms, providing information, and mailing the completed return. They cannot sign on behalf of the incarcerated individual unless they have Power of Attorney (Form 2848).
- Legal Aid or Pro Bono Tax Services: Some organizations offer free tax preparation assistance, particularly for vulnerable populations. Inquire if any such services are available through prison libraries, chaplaincy services, or legal aid clinics.
- Deceased Individuals: If an eligible incarcerated individual has passed away, their legal representative (e.g., the executor of their estate) can claim the payment on their behalf.
Deadlines:
- While the initial deadlines for the Non-Filers Tool have passed, individuals generally have three years from the tax filing deadline to claim a refund or credit. For the 2020 Recovery Rebate Credit, the deadline to file is typically July 15, 2024. For the 2021 Recovery Rebate Credit, the deadline is April 15, 2025. It is crucial to file as soon as possible.
Navigating the Unique Challenges Within the Walls
Claiming these payments from within a correctional facility presents unique obstacles:
- Access to Information: Limited or no internet access makes it difficult to research eligibility or obtain forms. Reliance on mail, prison libraries, or outside support is crucial.
- Mail Restrictions: Incoming and outgoing mail can be slow and subject to scrutiny, delaying the process.
- Lack of Computers/Printers: Filling out complex tax forms by hand is challenging, and obtaining copies can be difficult.
- Trust and Scams: Incarcerated individuals are often targets of scams. They must be wary of anyone promising easy money in exchange for personal information or fees. Only official IRS forms and reputable organizations should be trusted.
- Limited Access to Legal/Tax Assistance: In-prison resources for tax preparation are scarce. Connecting with external legal aid or pro bono tax services can be challenging but is often necessary.
- Fear of Reprisal: Some individuals may fear that claiming the money could negatively impact their prison status or release prospects, though this is not the case.
It is imperative that correctional facilities facilitate, rather than hinder, this process. Providing access to tax forms, stamps, and basic information can make a significant difference.
Beyond the $1,200: Why This Money Matters Deeply
For many, $1,200 might seem like a small sum. But for incarcerated individuals, it can be life-changing, offering more than just financial relief:
- Reentry Support: This money can be a crucial lifeline upon release. It can pay for initial housing, food, transportation, clothing, and identification documents – essential elements for a successful transition back into society and reducing recidivism.
- Family Support: Many incarcerated individuals have families, children, or elderly parents who depend on them, even from behind bars. The stimulus funds can be sent to support loved ones, pay child support, or contribute to family expenses.
- Commissary and Basic Needs: While inside, the money can be used for commissary items – basic necessities like hygiene products, snacks, writing materials, or phone calls – improving quality of life and maintaining connections.
- Legal Fees and Fines: Some funds may go towards outstanding court fees, fines, or restitution, which can sometimes be a barrier to release or impact parole eligibility.
- Sense of Dignity and Inclusion: Being recognized as eligible for these payments, like other citizens, reinforces a sense of dignity and inclusion. It acknowledges that even while incarcerated, they are still part of the broader American community and subject to its benefits and responsibilities.
A Precedent Set: Looking Forward
The struggle for stimulus checks for incarcerated individuals was more than just a fight for $1,200. It was a crucial battle for civil rights, challenging the arbitrary exclusion of a vulnerable population from a broad-based government relief program. The victory in Scholl v. Mnuchin set a vital precedent, affirming that eligibility for federal benefits is determined by law, not by administrative whim or a person’s carceral status.
This case serves as a powerful reminder that even those behind bars retain fundamental rights and that advocacy for justice must extend to all corners of society. For incarcerated individuals and their families, the path to claiming these funds may still require persistence, but the legal foundation is now firmly in place. What was once denied is now rightfully owed, offering a glimmer of hope and a tangible step towards a more just and equitable future.
Disclaimer: This article provides general information and should not be considered legal or tax advice. Individuals seeking to claim stimulus payments should consult with a qualified tax professional or legal aid organization for personalized guidance. Information from the IRS is subject to change, so always refer to the most current official IRS guidance.