Navigating the Waters: How DACA Recipients Can Claim Their Stimulus Checks

For millions of DACA recipients, the economic challenges brought about by the COVID-19 pandemic were compounded by a cloud of confusion surrounding eligibility for federal stimulus checks, officially known as Economic Impact Payments (EIPs). Initial legislative hurdles seemed to exclude many DACA-mented individuals and their families, creating widespread frustration and financial hardship.

However, the landscape has significantly shifted. Thanks to subsequent legislation, many DACA recipients who previously thought they were ineligible for the first two rounds of stimulus checks – and who were generally eligible for the third – now have clear pathways to claim these vital funds. This article will demystify the process, clarify eligibility requirements, and provide actionable steps for DACA recipients to access the financial relief they are entitled to.

Understanding the Stimulus Checks: A Brief Overview

The U.S. government issued three rounds of Economic Impact Payments (EIPs) in response to the COVID-19 pandemic, aiming to provide financial relief to individuals and families:

1. First Economic Impact Payment (EIP1): Authorized by the CARES Act in March 2020, this payment was up to $1,200 per eligible adult and $500 per qualifying child.
2. Second Economic Impact Payment (EIP2): Authorized by the Consolidated Appropriations Act, 2021 (signed into law in December 2020), this payment was up to $600 per eligible adult and $600 per qualifying child.
3. Third Economic Impact Payment (EIP3): Authorized by the American Rescue Plan Act of 2021 (signed into law in March 2021), this payment was up to $1,400 per eligible adult and $1,400 per qualifying child.

The initial rules for EIP1, set by the CARES Act, were particularly problematic for mixed-status families – households where some members have Social Security Numbers (SSNs) and others (like a spouse or parent) use an Individual Taxpayer Identification Number (ITIN). The CARES Act required all filers on a joint tax return to have an SSN for the household to be eligible. This meant that if a DACA recipient filed jointly with a spouse who had an ITIN, the entire household was often excluded from the first payment, even if the DACA recipient themselves had an SSN.

The Game-Changer: Shifting Eligibility Rules for DACA Recipients

The good news for DACA recipients came with the Consolidated Appropriations Act, 2021. This pivotal legislation retroactively changed the rules for both EIP1 and EIP2. Under the new provisions, mixed-status families became eligible for the first two stimulus checks if at least one spouse on a joint return had a valid SSN. This was a monumental victory for DACA recipients and their families, as DACA holders are issued SSNs upon receiving their employment authorization.

The American Rescue Plan Act of 2021, which authorized EIP3, continued this more inclusive approach. It maintained the provision that only one taxpayer on a joint return needed an SSN for the household to qualify, making DACA recipients generally eligible for the third payment as well, provided they met other criteria.

In essence, if you are a DACA recipient with a Social Security Number, and you meet the income and filing requirements, you are now very likely eligible for all three stimulus payments.

Who is Eligible? Specifics for DACA Recipients

To be eligible for the stimulus checks as a DACA recipient, you generally need to meet the following criteria:

1. Valid Social Security Number (SSN): As a DACA recipient, you are issued an SSN for work authorization. This is the primary key to your eligibility.
2. Adjusted Gross Income (AGI) within Thresholds:
   • For EIP1 and EIP2, payments began to phase out for individuals with AGI above $75,000 ($150,000 for married couples filing jointly).
   • For EIP3, payments began to phase out for individuals with AGI above $75,000 ($150,000 for married couples filing jointly, and $112,500 for heads of household), phasing out completely at higher thresholds.
3. Not Claimed as a Dependent: You cannot be claimed as a dependent on someone else’s tax return (unless you are filing your own taxes and meet other specific criteria).
4. Filed a Tax Return (or provided information to the IRS): The IRS primarily used filed tax returns from 2018, 2019, or 2020 (depending on the payment round and when you filed) to determine eligibility and send payments. If you didn’t file, you’d need to file to claim the Recovery Rebate Credit (see below).
5. Mixed-Status Families: If you are a DACA recipient filing jointly with a spouse who has an ITIN, you are now eligible for all three payments as long as at least one of you has an SSN. This applies retroactively to EIP1 and EIP2.

How to Claim Your Stimulus Check: The Recovery Rebate Credit

For most DACA recipients who were initially excluded or didn’t receive their payments, the primary way to claim the stimulus money is through the Recovery Rebate Credit on a federal income tax return.

The Recovery Rebate Credit is essentially a tax credit that allows you to claim any unpaid stimulus money you were eligible for but didn’t receive.

Here’s how to do it:

1. File Your 2020 Tax Return (for EIP1 & EIP2):

   • If you did not receive the first and/or second stimulus checks, you must file a 2020 federal income tax return to claim the Recovery Rebate Credit.
   • Even if your income was below the filing threshold and you don’t normally file taxes, you must file a 2020 return to claim these payments.
   • On Form 1040 or 1040-SR, you will find a line dedicated to the Recovery Rebate Credit. You will need to calculate the amount you believe you are owed for EIP1 and EIP2 based on your eligibility.
   • Many tax software programs will guide you through this process.

2. File Your 2021 Tax Return (for EIP3):

   • Similarly, if you did not receive the third stimulus check, you must file a 2021 federal income tax return to claim the Recovery Rebate Credit for that payment.
   • The same principles apply: even if you don’t normally file, you’ll need to do so.

3. "Get My Payment" Tool: While the IRS "Get My Payment" tool (www.irs.gov/coronavirus/get-my-payment) can show you the status of some of your payments, it’s primarily designed for current-year payments and may not reflect past payments or adjustments made via the Recovery Rebate Credit. It’s still worth checking, but don’t rely solely on it if you believe you’re owed money.

4. Direct Deposit or Paper Check: When you file your tax return and claim the Recovery Rebate Credit, the amount will either increase your refund or reduce the amount of tax you owe. The IRS will typically send this amount via direct deposit (if you provide bank information) or by paper check.

Important Note: The deadline to file your 2020 tax return (to claim EIP1 and EIP2) has passed for most people, but you can still file a late return to claim the credit. Similarly, if you missed filing your 2021 tax return, you can still file it to claim EIP3. The statute of limitations for claiming a refund (which the Recovery Rebate Credit functions as) is generally three years from the date the original return was due, or two years from the date the tax was paid, whichever is later.

Important Considerations for DACA Recipients

• Public Charge Rule: A critical concern for many DACA recipients and mixed-status families is the "public charge" rule. It is crucial to understand that receiving a stimulus check (Economic Impact Payment) does NOT count against you under the public charge rule. These payments are considered tax credits, not public benefits, and will not negatively impact your current or future immigration applications. The Department of Homeland Security (DHS) and U.S. Citizenship and Immigration Services (USCIS) have explicitly clarified this.
• Deceased Individuals: If an eligible individual passed away after January 1, 2020, their estate may still be eligible to claim the stimulus payments. This would be done by the surviving spouse or personal representative on the deceased’s final tax return.
• Children Born in 2020 or 2021: If you had a qualifying child born in 2020, you would claim the additional $500 (EIP1) and $600 (EIP2) for them on your 2020 tax return. For a child born in 2021, you would claim the $1,400 (EIP3) on your 2021 tax return.
• Incorrect Amount Received: If you received some stimulus money but believe the amount was incorrect (e.g., you didn’t receive money for all your dependents, or your income changed), you can still claim the difference via the Recovery Rebate Credit on your tax return.
• Scams: Be vigilant against scams. The IRS will never contact you by phone, email, text message, or social media asking for personal or financial information related to your stimulus check. Only use official IRS channels (irs.gov) for information.

Where to Get Help

Navigating tax law can be complex, especially with retroactive changes and specific immigration statuses. Don’t hesitate to seek assistance:

• IRS Website: The official source for all stimulus payment information is www.irs.gov/coronavirus/economic-impact-payments. They also have FAQs and tools.
• Tax Professionals: A qualified tax preparer, Certified Public Accountant (CPA), or Enrolled Agent (EA) can help you accurately prepare and file your tax return to claim the Recovery Rebate Credit.
• Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) Programs: These IRS-sponsored programs offer free tax preparation services for qualifying individuals, including those with disabilities, limited English proficiency, or who are generally low-to-moderate income. Many VITA/TCE sites are knowledgeable about DACA-related tax issues. You can find a local VITA/TCE site at www.irs.gov/individuals/free-tax-return-preparation-for-you.
• Non-Profit Immigration Organizations: Many organizations that provide legal aid or support to immigrant communities also offer resources or referrals for tax-related issues.

Conclusion

The journey for DACA recipients to secure their stimulus checks has been one of initial exclusion followed by legislative rectification. The changes in the law mean that the vast majority of DACA individuals who meet the income and filing requirements are eligible for all three rounds of Economic Impact Payments.

The key takeaway is clear: file your taxes. Even if you don’t normally file, or if your income is below the threshold, filing a 2020 and/or 2021 federal income tax return is the primary and most effective way to claim any unpaid stimulus money through the Recovery Rebate Credit. This not only provides much-needed financial relief but also helps establish a tax history, which can be beneficial in other aspects of your life.

Do not let fear or confusion prevent you from claiming what you are rightfully owed. Empower yourself with information, seek trusted assistance, and take the necessary steps to secure your stimulus checks.