The COVID-19 pandemic brought unprecedented challenges, and with it, a series of Economic Impact Payments (EIPs), commonly known as stimulus checks, designed to provide financial relief to millions of Americans. For individuals and families receiving housing assistance through the Section 8 program, these payments raised specific questions: Am I eligible? How do I get it? Will it affect my housing benefits?
The good news is that yes, individuals on Section 8 are generally eligible for stimulus checks, provided they meet the Internal Revenue Service (IRS) criteria. More importantly, these payments were designed not to count as income for federal benefit programs like Section 8, meaning your housing assistance should not be jeopardized.
This comprehensive guide will walk you through everything you need to know about securing your stimulus check if you’re a Section 8 recipient, from understanding eligibility to claiming missed payments and navigating common challenges.
Understanding Stimulus Checks: The Basics
Before diving into the specifics for Section 8 recipients, it’s helpful to understand the core principles of the stimulus checks. These payments were essentially advance tax credits issued by the IRS to provide direct financial aid during economic uncertainty.
There were three main rounds of Economic Impact Payments:
- First EIP (Spring 2020): Up to $1,200 per eligible adult and $500 per qualifying child.
- Second EIP (Winter 2020-2021): Up to $600 per eligible adult and $600 per qualifying child.
- Third EIP (Spring 2021): Up to $1,400 per eligible individual and $1,400 per qualifying dependent (including older children and adult dependents).
General Eligibility Criteria for Stimulus Checks:
- Valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN): For the individual and any qualifying dependents.
- Not Claimed as a Dependent: You could not be claimed as a dependent on someone else’s tax return.
- Income Thresholds: Payments began to phase out for individuals with Adjusted Gross Income (AGI) above certain limits (e.g., $75,000 for single filers, $150,000 for married filing jointly). Importantly, these thresholds were significantly higher than the income limits for Section 8, meaning most Section 8 recipients would fall well within the eligible range.
- U.S. Resident: Generally, U.S. citizens or resident aliens.
Section 8 and Stimulus Eligibility: A Clear Link
One of the most common misconceptions among Section 8 recipients was that receiving housing assistance would disqualify them from stimulus checks. This is false.
The IRS, not the Department of Housing and Urban Development (HUD), set the eligibility rules for stimulus checks. The payments were designed to be broadly distributed, and your status as a Section 8 voucher holder or public housing resident does not impact your eligibility. As long as you met the general IRS criteria (primarily income and SSN requirements), you were entitled to the payment.
Crucially, stimulus checks were considered a "tax credit" and not taxable income. This distinction is vital because it means:
- No Impact on Section 8 Benefits: The stimulus money does not count towards your household income when calculating your rent portion or determining your continued eligibility for Section 8. Your Public Housing Authority (PHA) will not include it in their income calculations.
- No Impact on Other Federal Benefits: Similarly, stimulus checks do not affect eligibility for other federal benefits like Social Security, SSI, SNAP (food stamps), or TANF.
This was a deliberate design choice by Congress to ensure the relief reached those who needed it most without inadvertently penalizing them through benefit reductions.
Key Steps to Receiving Your Stimulus Check
For many Section 8 recipients, the primary challenge in receiving stimulus checks wasn’t eligibility, but rather the process of providing the IRS with the necessary information, especially if they weren’t regular tax filers.
Here’s a step-by-step guide to how you could have received your payment, and how to claim it now if you missed it:
Step 1: Determine Your Eligibility (Recap)
Before taking any action, confirm you meet the basic IRS criteria for the relevant stimulus payment rounds. Most Section 8 recipients would qualify due to their income levels falling well below the phase-out thresholds. Ensure you (and any dependents) have valid SSNs.
Step 2: The Importance of Filing a Tax Return (Even with $0 Income)
For many Section 8 recipients, the biggest hurdle was that the IRS primarily used tax returns to determine eligibility and payment delivery. If you had very low or no taxable income, you might not have been required to file taxes annually.
- For the first two stimulus checks (2020): The IRS created a "Non-Filers Tool" that allowed individuals not required to file taxes to provide their information directly. This tool is no longer active for new submissions, but it highlighted the need for non-filers to get their information to the IRS.
- For the third stimulus check (2021) and claiming any missed payments now: The primary method is to file a tax return for the relevant year. Even if you had $0 taxable income, filing a simple tax return (Form 1040 or 1040-SR for seniors) is the mechanism to claim any stimulus money you are owed. This is done via the Recovery Rebate Credit.
Why File?
Filing a tax return, even if you don’t owe any taxes, is crucial because it:
- Provides the IRS with your current mailing address.
- Provides your bank account information for direct deposit.
- Allows you to claim the Recovery Rebate Credit for any stimulus payment you were eligible for but did not receive.
Step 3: How to File Your Tax Return
Don’t be intimidated if you haven’t filed taxes in a while. There are excellent free resources available:
- IRS Free File Program: If your Adjusted Gross Income (AGI) is below a certain threshold (typically around $79,000 for 2023), you can use free tax preparation software offered through the IRS Free File program at IRS.gov. This guides you step-by-step.
- Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) Programs: These are invaluable resources.
- VITA: Offers free tax help to people who generally make $64,000 or less, persons with disabilities, and limited English-speaking taxpayers.
- TCE: Offers free tax help for all taxpayers, particularly those who are 60 years of age and older, specializing in questions about pensions and retirement-related issues.
These programs are staffed by IRS-certified volunteers and are specifically designed to help individuals with low-to-moderate incomes, including those who may not typically file taxes. They can help you prepare and e-file your return, including claiming the Recovery Rebate Credit. You can find VITA/TCE sites by visiting IRS.gov or calling 800-906-9887.
- Tax Preparers: While an option, be cautious. Many for-profit preparers charge significant fees. Always explore free options first.
Step 4: Providing Payment Information
When you file your tax return (or used the Non-Filers Tool historically), you’ll be asked how you want to receive your refund/payment:
- Direct Deposit: This is the fastest and most secure method. If you have a bank account (checking or savings), provide the routing and account numbers.
- Paper Check: If you don’t have a bank account, a paper check will be mailed to the address on file with the IRS. Ensure your address is current and accurate.
- EIP Card: Some payments were sent on a prepaid debit card (Economic Impact Payment Card). If you received one, activate it immediately and treat it like cash. Be aware of scams trying to get you to reveal card details.
Step 5: What if You Missed a Payment? Claiming the Recovery Rebate Credit
If you were eligible for any of the stimulus checks but did not receive them, or only received a partial amount, you can claim the full amount you are owed by filing a tax return for the relevant year and claiming the Recovery Rebate Credit.
- For the first two stimulus checks: You would claim the Recovery Rebate Credit on your 2020 tax return.
- For the third stimulus check: You would claim the Recovery Rebate Credit on your 2021 tax return.
The VITA/TCE programs mentioned above are particularly adept at helping people claim this credit. You do not need to amend a previous return if you didn’t file one initially; simply file an original return for that year.
Step 6: Tracking Your Payment
While the "Get My Payment" tool on IRS.gov was useful for tracking active payments, its functionality is limited for past payments. If you filed a return and are waiting for a refund (which would include your stimulus payment as a Recovery Rebate Credit), you can use the "Where’s My Refund?" tool on IRS.gov.
If you believe a payment was issued but you never received it, you might need to initiate a payment trace with the IRS. This is usually done after a certain period has passed since the expected payment date.
Addressing Common Challenges for Section 8 Residents
While eligibility for stimulus checks was broad, Section 8 residents often face unique challenges that can complicate the process:
- Digital Divide: Lack of internet access, computers, or digital literacy can make it difficult to navigate online IRS tools or file taxes electronically.
- Solution: Utilize VITA/TCE sites, which offer in-person assistance and computer access. Public libraries often provide free internet and computer access.
- Lack of Bank Accounts (Unbanked): Without a bank account, direct deposit isn’t an option, meaning payments come by mail, which can be slower and more prone to issues.
- Solution: Consider opening a low-fee checking account or using a prepaid debit card for future payments. VITA sites may offer resources for opening bank accounts.
- Literacy and Language Barriers: Tax forms and IRS communications can be complex.
- Solution: VITA/TCE programs often have volunteers who speak multiple languages and are trained to explain tax concepts clearly. Bring a trusted friend or family member if possible.
- Fear of Affecting Benefits: As discussed, this is a major concern.
- Reassurance: Emphasize repeatedly that stimulus checks are tax credits, not income, and will not affect Section 8 or other federal benefits.
- Homelessness or Unstable Addresses: For those experiencing homelessness or frequent moves, receiving mail can be a significant challenge.
- Solution: Consider using a trusted friend or family member’s address, a P.O. Box, or a general delivery service if available through the Post Office. VITA sites can also advise on best practices for receiving mail.
Tips for Success
- Seek Free Help: VITA and TCE programs are your best friends in this process. Don’t hesitate to reach out to them.
- Keep Records: Keep copies of any tax returns filed, IRS notices, and any correspondence related to your stimulus payments.
- Be Patient: The IRS processed millions of payments, and delays can occur.
- Beware of Scams: The IRS will never call, text, or email you asking for personal or financial information related to your stimulus check. Legitimate communication comes via mail. Do not click on suspicious links or provide information to unsolicited callers.
- Understand the "Why": Remember that these payments are intended to help you, and they will not negatively impact your Section 8 housing or other vital benefits.
Conclusion
For individuals and families relying on Section 8 housing assistance, stimulus checks were a vital lifeline during a challenging time. While the initial distribution presented some hurdles for non-filers, the mechanisms are in place to ensure everyone eligible receives their due. By understanding the IRS rules, leveraging free tax preparation resources like VITA and TCE, and addressing common challenges head-on, Section 8 recipients can confidently navigate the process and claim the Economic Impact Payments they are entitled to. Don’t leave money on the table – take the necessary steps to secure your stimulus payment today.