For millions of Americans, the Economic Impact Payments (EIPs), commonly known as stimulus checks, provided a much-needed financial lifeline during the economic uncertainties of the COVID-19 pandemic. However, for a variety of reasons, many eligible individuals, including a significant number of veterans, may not have received the full amount they were entitled to, or perhaps any payment at all.
If you’re a veteran who believes you missed out on one or more of these crucial payments, don’t despair. While the initial distribution phases have long passed, there’s still a legitimate pathway to claim what’s rightfully yours. This comprehensive guide will walk you through the eligibility criteria, the process for claiming past payments, and vital resources specifically tailored for our nation’s heroes.
Understanding the Stimulus Checks: A Brief Overview
Before diving into the "how-to," it’s essential to understand what the stimulus checks were and why some veterans might have missed them. The U.S. government authorized three rounds of EIPs:
- EIP 1 (CARES Act): Up to $1,200 per eligible adult, plus $500 per qualifying child. Issued primarily in Spring 2020.
- EIP 2 (Consolidated Appropriations Act): Up to $600 per eligible adult, plus $600 per qualifying child. Issued primarily in late 2020/early 2021.
- EIP 3 (American Rescue Plan): Up to $1,400 per eligible adult, plus $1,400 per qualifying child. Issued primarily in Spring 2021.
These payments were, in essence, advance payments of a tax credit – specifically, the "Recovery Rebate Credit" (RRC). This is a crucial distinction because it means that if you didn’t receive an advance payment, or received less than you were due, you can still claim the full amount by filing a federal income tax return.
Who Was Eligible? General Criteria and Veteran-Specific Nuances
Eligibility for the stimulus checks primarily hinged on your Adjusted Gross Income (AGI), having a valid Social Security Number (SSN), and not being claimed as a dependent on someone else’s tax return.
General Eligibility Criteria:
- Income Thresholds: Payments were phased out for individuals with higher incomes. For example, EIP 1 began phasing out for single filers with AGI over $75,000, head of household filers over $112,500, and married couples filing jointly over $150,000. Similar (though different) thresholds applied to EIP 2 and EIP 3.
- Social Security Number (SSN): Generally, you needed a valid SSN issued before the due date of your tax return for the year the payment was based on.
- Not a Dependent: You could not be claimed as a dependent on another taxpayer’s return (e.g., an adult child living with parents).
- U.S. Resident: You had to be a U.S. citizen, U.S. resident alien, or qualifying resident alien.
Why Veterans Might Have Missed Payments:
Many veterans receive income primarily from non-taxable sources, such as:
- VA Disability Compensation: Payments for service-connected disabilities are generally tax-exempt.
- VA Pension Benefits: Payments for low-income, wartime veterans and their survivors are also tax-exempt.
- Other Tax-Exempt Benefits: Including some educational benefits or specific types of insurance payments.
If your only income came from these tax-exempt VA benefits, you might not have been required to file a federal income tax return in previous years. The IRS initially tried to send payments automatically to those receiving Social Security, SSI, SSDI, Railroad Retirement, and certain VA benefits. However, issues arose:
- Lack of Current Information: The IRS may not have had up-to-date address or direct deposit information if you hadn’t filed taxes recently.
- Non-Filers Tool Confusion: While the IRS created a "Non-Filers Tool," its use was time-sensitive for each EIP round. Many veterans might have missed these windows or been unaware they needed to use it.
- Dependents Not Counted: If the IRS only had information for the veteran, payments for qualifying children might have been missed if not properly reported.
- Changes in Circumstances: Life events like marriage, divorce, or new dependents could have altered eligibility or payment amounts.
The critical takeaway for veterans is this: even if your income was primarily from tax-exempt VA benefits and you weren’t required to file a tax return, you were still eligible for the stimulus checks. The challenge was getting the IRS the information they needed to send you the payment.
Claiming Missed Payments: The Recovery Rebate Credit (RRC)
The primary and most effective way for veterans (and anyone else) to claim missed stimulus payments now is through the Recovery Rebate Credit (RRC). This credit is claimed on a federal income tax return for the relevant year.
Which Tax Year to File For:
- For EIP 1 and EIP 2 (the $1,200/$600 checks): You must file an original or amended 2020 federal income tax return.
- For EIP 3 (the $1,400 check): You must file an original or amended 2021 federal income tax return.
The Process: Step-by-Step
Determine Which Payments You Missed:
- Review any IRS notices you received (Letters 1444, 1444-B, and especially Letter 6475 for EIP 3). These letters summarize the total amount of EIPs the IRS thinks they sent you.
- If you received no letters or believe the amount is incorrect, you can check your IRS online account. This account shows your EIP amounts under the "Tax Records" section. You’ll need to verify your identity to access this.
- If you’re unsure, assume you might be eligible for more and proceed.
Gather Necessary Information:
- Social Security Numbers: For yourself, your spouse (if applicable), and all qualifying children.
- IRS Letters: Any Letters 1444, 1444-B, or 6475 you received.
- Income Documentation: Even if you have tax-exempt VA benefits, it’s good to have documentation of any income (e.g., W-2s, 1099s for any taxable income like part-time work, VA benefit letters showing your total benefit amount, even if non-taxable). This helps confirm your eligibility for the RRC.
- Bank Account Information: For direct deposit of your refund.
Choose Your Filing Method:
- IRS Free File Program: If your AGI is below a certain threshold (usually around $79,000 for 2023, check IRS.gov for the current year’s limits), you can use free, guided tax software provided by IRS partners. This is often the easiest way for eligible individuals to file.
- Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) Programs: These IRS-sponsored programs offer free tax preparation assistance to qualifying individuals.
- VITA: Generally for people who make $64,000 or less, persons with disabilities, and limited English-speaking taxpayers.
- TCE: Specifically for people age 60 and over, specializing in pensions and retirement-related issues.
- Many VITA/TCE sites have volunteers who are experienced with veteran tax situations. Use the IRS VITA/TCE Locator tool on IRS.gov to find a site near you.
- Veteran Service Organizations (VSOs): Many VSOs, such as the American Legion, Veterans of Foreign Wars (VFW), Disabled American Veterans (DAV), and others, offer free tax preparation assistance or can direct you to qualified professionals who do. They often understand the unique financial situations of veterans.
- Paid Tax Preparer: If your situation is complex or you prefer professional help, a paid tax preparer can assist you. Ensure they are reputable and understand the Recovery Rebate Credit.
- Paper Filing: You can download the necessary forms from IRS.gov (Form 1040 and Schedule 3 for the RRC) and mail them in. However, this is slower and prone to errors if you’re not familiar with tax forms.
File Your Tax Return:
- When completing your 2020 or 2021 tax return, locate the section for the Recovery Rebate Credit (usually on Schedule 3, Line 30 for 2020, and Schedule 3, Line 19 for 2021).
- You will need to calculate the difference between the maximum stimulus amount you were eligible for and any amount you actually received.
- The tax software or preparer will guide you through this calculation.
- Important: Even if you had no taxable income and your AGI was $0, you still need to report this on the tax return to claim the RRC. The credit will then generate a refund.
Important Considerations for Veterans
- Statute of Limitations: Generally, you have three years from the tax filing deadline to claim a refund. For the 2020 tax year (EIP 1 & 2), the deadline to claim the RRC is typically April 15, 2024. For the 2021 tax year (EIP 3), the deadline is typically April 15, 2025. Don’t delay!
- Address Changes: If you’ve moved since the initial payments, ensure your current address is on file with the IRS (Form 8822, Change of Address) and on your tax return.
- Direct Deposit vs. Paper Check: Opt for direct deposit if possible; it’s faster and more secure.
- Beware of Scams: The IRS will never call, text, or email you demanding immediate payment or asking for personal financial information related to your stimulus check. All legitimate communication will be via mail.
- Deceased Veterans: If a veteran passed away before receiving their EIP, their estate may be eligible to claim the payment via the Recovery Rebate Credit on their final tax return.
- IRS Get My Payment Tool: While this tool was useful during the initial distribution, it may no longer provide real-time updates or allow you to claim payments. The Recovery Rebate Credit on your tax return is the primary method now.
Resources for Veterans
Navigating tax issues can be complex, but you don’t have to do it alone. Numerous organizations are dedicated to assisting veterans:
- Internal Revenue Service (IRS):
- IRS.gov: The official source for all tax information. Search for "Recovery Rebate Credit," "Economic Impact Payment," or "Free File."
- IRS Taxpayer Advocate Service (TAS): If you’re experiencing significant tax problems you haven’t been able to resolve through normal IRS channels, TAS can help.
- IRS Free File: www.irs.gov/freefile
- VITA/TCE Locator: www.irs.gov/individuals/free-tax-return-preparation-for-you
- Veteran Service Organizations (VSOs):
- American Legion: www.legion.org
- Veterans of Foreign Wars (VFW): www.vfw.org
- Disabled American Veterans (DAV): www.dav.org
- Paralyzed Veterans of America (PVA): www.pva.org
- Many VSOs have accredited service officers who can provide guidance on a range of benefits, including tax-related issues or referrals to free tax assistance.
- AARP Foundation Tax-Aide: Offers free tax preparation help to taxpayers, especially those 50 and older, with low to moderate income. Not limited to AARP members. www.aarp.org/money/taxes/info-2023/tax-aide
- Military OneSource: While primarily for active duty and their families, they have a wealth of financial and tax information that can be broadly applicable. www.militaryonesource.mil
Conclusion
If you’re a veteran who missed out on stimulus checks, remember that these payments were designed to help you. The window to claim them is closing, but the Recovery Rebate Credit remains a powerful tool to ensure you receive the financial support you were eligible for. Take the initiative, gather your documents, and utilize the many free resources available to you. Your service to our nation is invaluable, and ensuring you receive every benefit you’re due is a small but important way to honor that commitment.