The COVID-19 pandemic brought unprecedented economic challenges, prompting the U.S. government to issue several rounds of Economic Impact Payments (EIPs), commonly known as stimulus checks. These payments were designed to provide crucial financial relief to millions of Americans. However, for many individuals and families navigating the complexities of public assistance programs like Temporary Assistance for Needy Families (TANF), understanding eligibility and how to claim these funds can be a daunting task.
If you are a TANF recipient, it’s critical to understand that being on TANF does not disqualify you from receiving stimulus checks. In fact, due to the income thresholds set for these payments, many TANF recipients were precisely the individuals and families the stimulus payments were intended to help. This article will guide you through the process of determining your eligibility, understanding how to claim any missed payments, and navigating the system to ensure you receive the financial support you are entitled to.
Understanding the Stimulus Payments: A Brief Overview
Before diving into the specifics for TANF recipients, let’s briefly recap the three main rounds of Economic Impact Payments:
- First Stimulus Check (CARES Act, Spring 2020): Up to $1,200 per eligible adult and $500 per qualifying child.
- Second Stimulus Check (Consolidated Appropriations Act, December 2020): Up to $600 per eligible adult and $600 per qualifying child.
- Third Stimulus Check (American Rescue Plan, March 2021): Up to $1,400 per eligible adult and $1,400 per qualifying child.
Eligibility for these payments was primarily based on adjusted gross income (AGI) from your most recent tax return (either 2019 or 2020, depending on the payment round and when you filed). Payments phased out for higher incomes. Crucially, to receive the full amount, individuals generally needed an AGI below $75,000 ($150,000 for married couples filing jointly).
TANF and Stimulus Eligibility: The Crucial Connection
This is where the most common misconception lies. Many people believe that because they receive public assistance like TANF, they are ineligible for other government benefits. This is generally not true for stimulus checks.
Key Points for TANF Recipients:
- TANF payments are NOT considered taxable income for EIP purposes. This means that the money you receive from TANF does not count towards your AGI for stimulus check eligibility. This is a significant advantage, as it helps keep your AGI low, making you more likely to qualify for the full stimulus amount.
- You did not need to have earned income or filed taxes to be eligible. While the IRS primarily used tax returns to determine eligibility and send payments, provisions were made for non-filers. This is particularly relevant for many TANF recipients, whose income may be below the tax filing threshold.
- Dependent children significantly increase your payment. If you have qualifying children claimed as dependents, your stimulus payment amount would have been higher for each round.
Why Many TANF Recipients May Have Missed Payments
Despite being eligible, a significant number of TANF recipients likely did not receive their stimulus checks automatically. Here are the primary reasons:
- Non-Filers: The IRS primarily relied on 2019 and 2020 tax returns to send out the EIPs. If your income was low enough that you weren’t required to file a tax return, the IRS wouldn’t have had your information on file. While an IRS "Non-Filers" tool was available for a limited time, many people either didn’t know about it or missed the deadline.
- No Direct Deposit Information: Even if the IRS had your information, if they didn’t have a direct deposit account on file, they would have mailed a paper check or a debit card, which could be delayed, lost, or overlooked.
- Changes in Circumstances: Your eligibility might have changed between tax years (e.g., having a new child, or a significant drop in income) that wasn’t reflected in the tax return the IRS had on file at the time of payment.
How to Claim Missed Stimulus Payments: The Recovery Rebate Credit
If you believe you were eligible for one or more stimulus payments but did not receive them, or received less than the full amount, the primary way to claim them now is through the Recovery Rebate Credit (RRC).
The RRC is a refundable tax credit that you claim on your federal income tax return. It essentially allows you to get the stimulus money you missed out on when you file your taxes for the relevant year.
Which Tax Year Do You Need to File?
- For the First and Second Stimulus Payments: You must file an original or amended 2020 federal income tax return.
- For the Third Stimulus Payment: You must file an original or amended 2021 federal income tax return.
Step-by-Step Guide to Claiming the Recovery Rebate Credit:
Determine Your Eligibility for Each Payment:
- Review the income thresholds for each stimulus round. Remember, TANF payments do not count towards your income for this purpose.
- Consider your household size (number of qualifying dependents) for each year.
- Check your IRS online account (if you have one) or your tax records for any EIP amounts already received. The IRS sends Notice 1444-C for the first, Notice 1444-B for the second, and Letter 6475 for the third payment, showing the amount you received. Keep these letters!
Gather Necessary Documents:
- Social Security Numbers (SSNs) or Individual Taxpayer Identification Numbers (ITINs): For yourself, your spouse (if filing jointly), and all qualifying children.
- Income Information: Even if your income was low, gather any W-2s, 1099s, or other statements for any earned income you might have had during 2020 and 2021.
- IRS Notice 1444-C, Notice 1444-B, and Letter 6475: These documents show you how much stimulus money the IRS believes it sent you. If you don’t have them, you can often find this information by checking your IRS online account.
- Banking Information: For direct deposit of your refund.
Choose Your Filing Method (Even if You Don’t Normally File):
Free Tax Help Programs: This is often the best option for TANF recipients and low-income individuals.
- Volunteer Income Tax Assistance (VITA): VITA sites offer free tax preparation services to people who generally make $64,000 or less, persons with disabilities, and limited English-speaking taxpayers. Volunteers are IRS-certified.
- Tax Counseling for the Elderly (TCE): TCE offers free tax help to all taxpayers, particularly those who are 60 years of age and older, specializing in questions about pensions and retirement-related issues unique to seniors.
- How to Find a Site: Use the IRS VITA/TCE Locator tool on IRS.gov or call 800-906-9887.
IRS Free File Program: If your AGI is $79,000 or less, you can use IRS Free File guided tax software, which is offered by commercial partners. These programs walk you through the process, including claiming the RRC. Go to IRS.gov/FreeFile to find eligible providers.
IRS Free File Fillable Forms: If your AGI is over $79,000 (unlikely for TANF recipients) or you’re comfortable preparing your own taxes, you can use this option. It’s essentially electronic versions of paper forms.
Complete Form 1040 (U.S. Individual Income Tax Return):
- Even if you are not typically required to file, you will need to file a Form 1040 for the relevant year (2020 or 2021).
- For the Recovery Rebate Credit: Look for the "Recovery Rebate Credit" line on Schedule 3 (Form 1040, line 19) for the 2020 tax year. For the 2021 tax year, it’s on line 30 of your Form 1040. The tax software or VITA/TCE volunteers will help you calculate the correct amount based on your eligibility and any payments you already received.
- Remember to sign and date your return.
Submit Your Return:
- E-file: Electronic filing is highly recommended as it’s faster, more accurate, and allows for quicker refunds. VITA/TCE sites and Free File software will help you e-file.
- Paper Filing: If you file on paper, mail your completed Form 1040 to the appropriate IRS address. This process will take significantly longer.
What if You Already Filed a Tax Return for 2020 or 2021?
If you filed a tax return for 2020 or 2021 but did not claim the Recovery Rebate Credit, or if you believe you received less than you were owed, you generally do not need to file an amended return (Form 1040-X) specifically for the RRC.
The IRS advises that if you originally filed a 2020 or 2021 tax return and did not claim the Recovery Rebate Credit, you can still claim it by filing an original 2020 or 2021 tax return, even if it’s past the normal filing deadline. The IRS system is designed to process these original returns with the RRC.
However, if you need to make other corrections to your 2020 or 2021 tax return in addition to claiming the RRC (e.g., correcting income, deductions, or other credits), then you would file an amended return using Form 1040-X. When you amend, ensure you include the correct RRC amount.
Important Considerations for TANF Recipients
- Impact on Other Benefits: A common concern for TANF recipients is whether receiving a stimulus check will affect their eligibility for other benefits like TANF itself, SNAP (food stamps), Medicaid, or housing assistance. Generally, stimulus payments did NOT count as income or resources for federal means-tested programs. This means they should not have affected your eligibility for or amount of most public assistance benefits. However, it’s always wise to confirm with your specific state or local benefits agency if you have any doubts.
- Be Wary of Scams: The IRS will never contact you by phone, email, text message, or social media asking for personal or financial information to "help" you get your stimulus payment. All legitimate communications from the IRS will be by mail. Do not click on suspicious links or share your personal information with unverified sources.
- Keep Records: Keep copies of all tax forms you submit, any correspondence from the IRS, and records of any stimulus payments received.
- Deadlines: While there isn’t a strict "deadline" for claiming the Recovery Rebate Credit on an original return, it’s always best to file as soon as possible. The general statute of limitations for claiming a refund is typically three years from the date you filed your original return or two years from the date you paid the tax, whichever is later.
Don’t Miss Out: Take Action Now
Stimulus checks were a vital lifeline for millions, and if you were eligible but didn’t receive your full payment, that money is still yours to claim. Being on TANF does not diminish your right to this support; in many cases, it makes you precisely the type of individual or family the payments were designed to assist.
Don’t leave money on the table. Gather your documents, seek out free tax help from VITA or TCE, or utilize the IRS Free File program. Taking these steps can put much-needed funds directly into your hands, helping you and your family navigate current economic challenges.