A Helping Hand in a New Land: Understanding Your Stimulus Check and How to Claim It

Dear Newcomer to America,

Your journey to a new life in the United States has likely been filled with immense challenges, courage, and hope. Arriving in a new country, learning a new language, understanding different customs, and navigating complex systems can be overwhelming. As you work to build a stable future for yourself and your family, every resource and piece of information can make a significant difference.

This article is written specifically for you – a refugee in the United States – to explain an important financial support program that was put in place to help people during a difficult time: the Stimulus Check, also officially known as an Economic Impact Payment.

While the direct payments for the stimulus checks have largely ended, it is absolutely crucial for you to understand that it is not too late to claim this money if you were eligible but did not receive it. Many refugees, due to their recent arrival, lack of familiarity with the U.S. tax system, or simply the overwhelming circumstances of resettlement, may have missed out on these vital funds. This article will explain what these payments were, who was eligible, and most importantly, how you can still claim them, often by filing a tax return for past years.

What Was a Stimulus Check and Why Was It Sent?

During the COVID-19 pandemic, the U.S. government recognized that many individuals and families were facing severe financial hardship. Businesses closed, jobs were lost, and the cost of living remained high. To provide immediate financial relief and help stimulate the economy, Congress authorized several rounds of direct payments to eligible individuals and families across the country. These payments were called "Economic Impact Payments" or, more commonly, "Stimulus Checks."

Think of it as an emergency financial boost from the government, designed to help you pay for essential needs like food, rent, utilities, and other critical expenses during an uncertain time. This money was intended to help stabilize households and ensure people could meet their basic needs.

Who Was Eligible for a Stimulus Check?

Understanding eligibility is key. Generally, to be eligible for the stimulus checks, you needed to be:

1. A U.S. Resident: This includes U.S. citizens, green card holders (Lawful Permanent Residents), and certain other residents who lived in the U.S. for a significant part of the year. As a refugee, once you are granted asylum or refugee status and are residing in the U.S., you generally meet this residency requirement.
2. Have a Social Security Number (SSN): For the primary filer and any qualifying children claimed as dependents. Most adult refugees receive an SSN shortly after their arrival and resettlement.
3. Below Certain Income Thresholds: The payments were phased out for higher earners. However, many refugees, especially in their early years of resettlement, likely earned below these income limits, making them fully eligible. For example, a single person earning below approximately $75,000 or a married couple earning below $150,000 generally qualified for the full payment.
4. Not Claimed as a Dependent on Someone Else’s Tax Return: If you were an adult and someone else claimed you as a dependent, you generally wouldn’t qualify for your own stimulus payment.

Important Note for Families: If you had qualifying children (typically under age 17) who also had SSNs and were claimed on your tax return, you could receive additional money for each child.

How Were the Payments Sent?

The U.S. government tried to send the payments in two main ways:

• Direct Deposit: If you had provided your bank account information to the IRS (often through a past tax return), the money was deposited directly into your bank account.
• Mail: If the IRS did not have your bank information, or if the direct deposit failed, a paper check or a debit card was mailed to the address they had on file for you.

The Challenge for Refugees: Many refugees may not have had established bank accounts or filed previous tax returns, meaning the IRS wouldn’t have had their information. This is one of the primary reasons why many eligible refugees did not receive their stimulus checks automatically.

What If You Didn’t Receive Your Stimulus Check? It’s Not Too Late!

This is the most critical part of this article. If you were eligible for one or more stimulus checks (which were issued in 2020 and 2021) but never received the money, you can still claim it by filing a tax return for the relevant year.

The way to claim these missed stimulus payments is through something called the "Recovery Rebate Credit." When you file your federal income tax return for the year the stimulus was issued (for example, the 2020 tax return for the first two payments, or the 2021 tax return for the third payment), you can calculate and claim the amount you were owed but didn’t receive. The IRS will then add this amount to your tax refund.

Think of it this way: The tax return is like a form you fill out to tell the government about your income and your eligibility for certain payments. Even if you earned very little or no income in a particular year, filing a tax return is the only way to tell the IRS that you qualify for the Recovery Rebate Credit and deserve the stimulus money.

Filing a Tax Return: A Step-by-Step Guide for Refugees to Claim Your Money

Filing a tax return might sound complicated, especially if you’re new to the U.S. system. However, there are many free resources available to help you. Here’s a simplified guide:

1. Understand Which Years to Focus On:

   • 2020 Tax Return: To claim the first two stimulus payments ($1,200 for individuals / $2,400 for married couples, plus $500 per child for the first payment; and $600 for individuals / $1,200 for married couples, plus $600 per child for the second payment).
   • 2021 Tax Return: To claim the third stimulus payment ($1,400 for individuals / $2,800 for married couples, plus $1,400 per child).

2. Gather Your Important Documents:

   • Social Security Number (SSN): You, your spouse (if filing jointly), and all dependents you are claiming must have SSNs.
   • Proof of Income (if any): This might include:
     • Form W-2: If you worked for an employer.
     • Form 1099-NEC or 1099-MISC: If you worked as an independent contractor or received other income.
     • Records of any other income you received.
     • Even if you had NO income, you should still file to claim the stimulus money.
   • Bank Account Information: If you want your refund sent directly to your bank account (highly recommended for safety and speed). You’ll need your bank name, account number, and routing number.
   • Previous Year’s Tax Return (if you filed one): Not required, but helpful.
   • Identity Documents: Your refugee status documents, state ID, or driver’s license.

3. Find Free and Trusted Help:

   • Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) Programs: These IRS-sponsored programs offer free tax preparation services to people who qualify (generally those with low to moderate incomes, disabilities, or who speak limited English). Many VITA/TCE sites have volunteers who are familiar with refugee resettlement issues and can help you navigate the process. You can find local VITA/TCE sites by visiting the IRS website (irs.gov) and searching for "VITA Locator Tool" or by calling 800-906-9887.
   • Local Refugee Resettlement Agencies: The agency that helped you resettle in the U.S. often has staff or can connect you with partners who provide tax assistance specifically for refugees. They understand your unique situation and can offer culturally sensitive support.
   • Community Centers and Non-Profits: Many local community organizations offer free tax help or can refer you to trusted resources.
   • Legal Aid Organizations: Some legal aid groups offer pro bono (free) tax assistance, especially for vulnerable populations.

4. The Filing Process (with help):

   • Once you find a VITA/TCE site or a trusted organization, make an appointment.
   • Bring all your documents.
   • A certified volunteer or staff member will ask you questions about your income, your family, and whether you received any stimulus payments.
   • They will help you complete the tax forms, including the section for the Recovery Rebate Credit.
   • They will help you submit your tax return to the IRS electronically (e-file) or by mail. E-filing is faster and more secure.

Important Considerations and FAQs for Refugees

• Is the Stimulus Check Taxable Income? No. Stimulus checks are considered advance payments of a tax credit. They are not taxable income and will not be included in your gross income.
• Will Claiming the Stimulus Check Affect My Other Benefits (e.g., Food Stamps, Medicaid, Refugee Cash Assistance)? Generally, no. The stimulus payments were designed not to be counted as income for federal benefit programs. However, if you keep the money for a long time and it causes your assets to go above a certain limit for a specific program, it could potentially affect future eligibility for some asset-based programs. It’s always best to check with the specific benefit provider if you have concerns. For immediate use on necessities, it should not be an issue.
• What If I Don’t Have a Bank Account? Many VITA sites can help you open a bank account or direct you to safe ways to receive your refund, such as a prepaid debit card. Avoid check-cashing services that charge high fees.
• What If I Just Arrived in the U.S. in 2021 or 2022? Your eligibility for a stimulus check depends on your residency status in the year the stimulus was issued. For example, to get the third stimulus check (issued in 2021), you generally needed to be a U.S. resident in 2021. If you arrived late in the year or after, you might not qualify for that specific payment, but it’s still worth checking with a tax preparer.
• What If My Children Don’t Have SSNs Yet? To claim the additional child stimulus payments, your children must have had an SSN. If they did not, you cannot claim the child portion of the stimulus for them. However, you can still claim your own portion if you meet the eligibility.
• What If I Don’t Have All My Income Documents? Even if you don’t have a W-2 or 1099, you can still file. Explain your situation to the VITA preparer. They can help you reconstruct your income information if needed, or file a return reporting no income, which is still necessary to claim the Recovery Rebate Credit.

Beware of Scams!

Unfortunately, wherever there is money, there are also people trying to steal it. Be extremely cautious and aware of potential scams related to stimulus checks and tax refunds:

• The IRS will NEVER call, email, or text you demanding immediate payment or asking for your personal or financial information. They communicate primarily by mail.
• Do not click on links in suspicious emails or texts about your stimulus check. These are often phishing attempts.
• Do not share your Social Security Number, bank account details, or other personal information with anyone who contacts you unsolicited.
• Only trust official government websites (like IRS.gov) or reputable, free tax preparation services like VITA/TCE or your refugee resettlement agency.
• No one should ask you to pay a fee to get your stimulus money. Free help is available.

You Are Not Alone – Help Is Available

Navigating the U.S. financial and tax system can be daunting, but remember that you are not alone. There are dedicated organizations and caring individuals committed to helping refugees like you succeed. The stimulus check program was designed to offer relief, and the U.S. government wants eligible individuals to receive the money they are owed.

Take action today. Reach out to your local refugee resettlement agency, search for a VITA/TCE site near you, or contact a trusted community organization. These resources are there to empower you, answer your questions, and ensure you receive the financial support that is rightfully yours as you build your new life in America. This money can be a valuable resource as you settle in and establish your independence.