Navigating Stimulus Checks: A Guide for Those Receiving VA Burial Benefits

The economic landscape has been tumultuous in recent years, leading the U.S. government to issue several rounds of Economic Impact Payments (EIPs), commonly known as stimulus checks, to provide financial relief to millions of Americans. For individuals who have recently experienced the profound loss of a loved one and are receiving VA burial benefits, questions about eligibility for these payments can add another layer of complexity during an already difficult time.

This comprehensive guide aims to clarify how receiving VA burial benefits interacts with stimulus check eligibility, what factors truly determine whether you received or can still claim a payment, and the steps you need to take.

Understanding the Stimulus Checks: A Brief Overview

Before diving into the specifics of VA benefits, it’s crucial to understand the fundamental principles behind the stimulus checks. The U.S. government authorized three main rounds of EIPs:

1. First EIP (CARES Act, 2020): Up to $1,200 per eligible adult, plus $500 per qualifying child.
2. Second EIP (Consolidated Appropriations Act, 2021): Up to $600 per eligible adult, plus $600 per qualifying child.
3. Third EIP (American Rescue Plan Act, 2021): Up to $1,400 per eligible adult, plus $1,400 per qualifying dependent.

These payments were administered by the Internal Revenue Service (IRS) and were essentially advance payments of a tax credit known as the "Recovery Rebate Credit." Their primary purpose was to inject money directly into the economy and provide financial assistance to individuals and families impacted by economic downturns.

Key Eligibility Factors (General):

While the specific income thresholds and dependent rules varied slightly with each round, the core eligibility requirements generally included:

• Having a valid Social Security Number (SSN).
• Not being claimed as a dependent on someone else’s tax return.
• Meeting specific Adjusted Gross Income (AGI) thresholds.
• Being a U.S. citizen or resident alien.

It’s vital to note that these payments were not taxable income and did not affect eligibility for federal government assistance or benefit programs.

VA Burial Benefits: What They Are and What They Are Not for Stimulus Purposes

The Department of Veterans Affairs (VA) provides burial and funeral benefits to help cover the costs associated with interring a Veteran. These benefits can include:

• Burial Allowance: A monetary payment to help cover funeral and burial costs. The amount varies based on whether the Veteran died of a service-connected disability, was receiving VA pension or compensation, or died in a VA facility.
• Plot or Interment Allowance: A payment to help cover the cost of a burial plot or interment.
• Reimbursement for Transportation: In some cases, reimbursement for the cost of transporting the Veteran’s remains.

These benefits are typically paid to the Veteran’s surviving spouse, children, parents, or the person who paid for the Veteran’s burial.

The Crucial Distinction for Stimulus Eligibility:

Here’s the critical point that often causes confusion: VA burial benefits are considered reimbursements for specific expenses, not taxable income.

This means that the money you receive for VA burial benefits:

• Does NOT count towards your Adjusted Gross Income (AGI).
• Does NOT make you eligible or ineligible for a stimulus check on its own.

In essence, receiving VA burial benefits is entirely separate from the criteria the IRS used to determine stimulus check eligibility. The IRS looked at your income from other sources (like Social Security, VA disability compensation, pension, wages, etc.) and your filing status, not a one-time reimbursement for burial expenses.

Therefore, if your only financial interaction with the government in a given year was receiving VA burial benefits, that fact alone would not have triggered a stimulus payment. Your eligibility would depend on your other income and filing circumstances.

Who Was Eligible for a Stimulus Check (and How VA Beneficiaries Fit In)

Given that VA burial benefits don’t impact eligibility, let’s look at the scenarios where someone receiving these benefits would have been eligible for a stimulus check. The IRS primarily used two main methods to identify eligible individuals:

1. Tax Filers: If you filed a federal income tax return for the relevant year (2019 for the first EIP, 2020 for the second and third), the IRS used that information to determine your eligibility based on your AGI, filing status, and number of dependents.
   • Example: A surviving spouse who filed a tax return, even if their income was low, would have been considered for a stimulus check based on that tax return.

2. Non-Filers Receiving Federal Benefits: Many individuals, especially seniors, Veterans, and those with disabilities, are not required to file a tax return because their income is below the filing threshold. To ensure these individuals received payments, the IRS used information from other federal agencies for those receiving:

   • Social Security (Retirement, Survivor, or Disability Benefits – SSDI)
   • Supplemental Security Income (SSI)
   • Railroad Retirement Benefits
   • Veterans Affairs (VA) Benefits (specifically VA compensation and pension benefits, NOT burial benefits)

   If you were receiving any of these federal benefits, the IRS generally had enough information to automatically send you a stimulus check, provided you met the other general eligibility criteria (like having an SSN and not being claimed as a dependent).

   • Important Note: If you received federal benefits and had qualifying dependents (children), you might have needed to use the IRS’s "Non-Filers: Enter Payment Info Here" tool (which is now closed for most past payments) to ensure you received the additional dependent payment. If you didn’t, you would likely need to claim it via the Recovery Rebate Credit (explained below).

What if You Were Eligible But Didn’t Receive a Stimulus Check? (The Recovery Rebate Credit)

It’s common for people to have been eligible for one or more stimulus checks but never received them, or received less than the full amount. This could happen for various reasons:

• Income fluctuations: Your income in the year the payment was based on might have been too high, but your income in the year the credit was claimed was lower.
• New dependents: You gained a new dependent in a later year.
• Change in filing status: You got married, divorced, or became Head of Household.
• Did not file taxes and did not receive federal benefits: If you had very low income and did not receive any of the federal benefits listed above (Social Security, SSI, VA compensation/pension, Railroad Retirement), the IRS might not have had your information. This is particularly relevant if your only VA interaction was a burial benefit.
• IRS error or outdated information: Sometimes, payments simply got lost, were sent to an old address, or there was an administrative error.

The Solution: Claiming the Recovery Rebate Credit on Your Tax Return

If you believe you were eligible for a stimulus check (or a larger amount) but didn’t receive it, the only way to claim it now is by filing a federal income tax return and claiming the "Recovery Rebate Credit" (RRC).

This applies even if you are not normally required to file a tax return.

Steps to Claim the Recovery Rebate Credit:

1. Determine Which Stimulus Payment You Are Missing:

   • First and Second EIPs: These are claimed on your 2020 federal tax return (Form 1040 or 1040-SR).
   • Third EIP: This is claimed on your 2021 federal tax return (Form 1040 or 1040-SR).

2. Gather Your Information:

   • IRS Notice 1444 (for EIP1): This notice showed the amount of your first stimulus payment.
   • IRS Notice 1444-B (for EIP2): This showed the amount of your second stimulus payment.
   • IRS Letter 6475 (for EIP3): This showed the amount of your third stimulus payment.
   • Important: Even if you didn’t receive these notices, or lost them, you can still claim the credit. The IRS also sent Account Transcripts which show all three payments. You can get these online from the IRS website or by mail.
   • Your Social Security Number (SSN) and any dependents’ SSNs.
   • Your Adjusted Gross Income (AGI) for the relevant tax year.

3. File an Original or Amended Tax Return:

   • If you did NOT file a tax return for the relevant year (2020 or 2021): You will need to file an original Form 1040 or 1040-SR.
   • If you DID file a tax return but did not receive the full stimulus payment you were eligible for: You will need to file an amended tax return (Form 1040-X).

4. Complete the Recovery Rebate Credit Worksheet: The instructions for Form 1040/1040-SR (and 1040-X) include a worksheet to calculate your Recovery Rebate Credit. You’ll need to know how much stimulus money you already received (if any) to ensure you only claim the difference.

5. Submit Your Tax Return: You can file electronically or by mail. Electronic filing is generally faster.

Important Considerations for Filing for the Recovery Rebate Credit:

• Even $0 Income Filers: If your only income was Social Security, VA compensation/pension, or other non-taxable benefits, you might have had $0 taxable income. You can (and should) still file a tax return to claim the Recovery Rebate Credit if you’re eligible.
• Statute of Limitations: Generally, you have three years from the tax deadline to claim a refund or credit. For the 2020 tax year (which includes the first and second EIPs), the deadline to claim the RRC is typically April 15, 2024. For the 2021 tax year (for the third EIP), the deadline is typically April 15, 2025.
• Free Tax Help: Many resources offer free tax preparation assistance, especially for seniors, low-income individuals, and Veterans:
  • Volunteer Income Tax Assistance (VITA): Offers free tax help to people who generally make $64,000 or less, persons with disabilities, and limited English-speaking taxpayers.
  • Tax Counseling for the Elderly (TCE): Provides 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.
  • You can find local VITA/TCE sites by searching the IRS website.

Common Questions and Misconceptions

• "Will there be another stimulus check?" As of now, there are no plans for additional federal stimulus checks. The EIPs were specific responses to the economic impact of a particular crisis.
• "Does receiving VA burial benefits affect my other VA benefits?" No. VA burial benefits are separate and do not impact your eligibility for VA compensation, pension, healthcare, or other VA programs.
• "Do I have to pay back the stimulus check?" Generally, no. Stimulus checks were advance payments of a tax credit. If you received more than you were eligible for based on the IRS’s initial assessment, you usually don’t have to pay it back, unless it was a clear error or a specific set of circumstances (like being deceased for a long period before the payment was issued).
• "What if the Veteran who passed away was eligible but didn’t receive their stimulus check?" If a Veteran passed away after the effective date for a stimulus payment (e.g., after January 1, 2020, for the first EIP), their estate or surviving spouse may be able to claim the payment via the Recovery Rebate Credit on their final tax return or by filing as a surviving spouse. This can be complex and may require professional tax assistance.
• "Are stimulus checks considered taxable income?" No, they are not taxable income and do not need to be reported as such on your tax return. They are a refundable tax credit.

Protecting Yourself from Scams

Sadly, periods of government financial aid often lead to an increase in scams. Be highly vigilant:

• The IRS will NOT call, text, email, or contact you on social media asking for personal or financial information. They communicate via official mail.
• Do not click on suspicious links or open attachments from unknown senders.
• Never share your Social Security number, bank account details, or other sensitive information with unsolicited callers or emailers.
• Be wary of anyone demanding immediate payment or threatening legal action if you don’t comply.
• There is no "special" program or secret website to get your stimulus check. The process is through the IRS.gov website or by filing a tax return.

Where to Get Reliable Information and Help

• IRS Website (IRS.gov): This is the authoritative source for all information regarding stimulus checks (Economic Impact Payments) and the Recovery Rebate Credit. Search for "Economic Impact Payment" or "Recovery Rebate Credit."
• IRS Taxpayer Advocate Service: If you have tried to resolve an issue with the IRS and haven’t succeeded, the Taxpayer Advocate Service is an independent organization within the IRS that helps taxpayers with problems.
• Local Tax Preparers: A qualified tax professional can help you determine your eligibility and file the necessary tax forms.
• VITA/TCE Programs: As mentioned, these free tax preparation services are invaluable resources for many individuals.
• Veterans Organizations: While they don’t handle stimulus payments directly, organizations like the American Legion, VFW, or DAV may be able to direct you to local resources for tax help or provide general guidance.

Conclusion

Receiving VA burial benefits is a distinct process from qualifying for stimulus checks. The burial benefit itself does not count as income for stimulus purposes, meaning it neither qualifies nor disqualifies you. Your eligibility for past stimulus payments depends on your other income sources (like VA compensation/pension, Social Security, or wages) and your tax filing status in the relevant years.

If you believe you were eligible for a stimulus check but did not receive it, or received less than the full amount, the path forward is clear: you must file a federal income tax return for the relevant year (2020 or 2021) and claim the "Recovery Rebate Credit." Even if you don’t normally file taxes, this is the essential step to claim what you are owed. Don’t hesitate to seek assistance from trusted tax resources to ensure you receive the financial relief you are entitled to during what is undoubtedly a challenging time.