The COVID-19 pandemic brought unprecedented challenges, and in response, the U.S. government authorized several rounds of Economic Impact Payments (EIPs), commonly known as stimulus checks, to provide financial relief to millions of Americans. For veterans receiving benefits from the Department of Veterans Affairs (VA), Social Security, or other federal agencies, navigating the intricacies of these payments could sometimes be confusing. While many received their payments automatically, others encountered delays or missed out entirely.
This comprehensive guide aims to demystify the process, clarify eligibility, and provide actionable steps for veterans who receive benefits to understand how they received, or can still claim, their rightful stimulus payments.
Understanding the Economic Impact Payments (EIPs)
Before diving into the specifics for veterans, it’s crucial to understand the nature of the stimulus checks themselves. There were three main rounds of EIPs authorized by Congress:
- First EIP (CARES Act, March 2020): Up to $1,200 for eligible individuals, $2,400 for married couples filing jointly, plus $500 per qualifying child.
- Second EIP (Consolidated Appropriations Act, December 2020): Up to $600 for eligible individuals, $1,200 for married couples filing jointly, plus $600 per qualifying child.
- Third EIP (American Rescue Plan Act, March 2021): Up to $1,400 for eligible individuals, $2,800 for married couples filing jointly, plus $1,400 per qualifying dependent.
These payments were essentially advance credits against future tax liabilities. Crucially, they were not taxable income and did not affect eligibility for or the amount of any federal benefits, including VA compensation, pension, Social Security, SSI, SSDI, or other means-tested programs. This was a critical relief for veterans concerned about their existing benefits being jeopardized.
Automatic Payments: The Ideal Scenario for Veterans
For a vast majority of veterans receiving federal benefits, the process of receiving their stimulus checks was designed to be automatic, eliminating the need to file a tax return if they weren’t otherwise required to do so. The IRS utilized existing data from other federal agencies to identify eligible recipients.
If you receive your VA benefits via direct deposit, or if you receive Social Security (SS), Supplemental Security Income (SSI), or Social Security Disability Insurance (SSDI) payments via direct deposit, your stimulus payment was most likely sent to the same account.
This was the primary mechanism for automatic distribution. The IRS worked closely with the VA, Social Security Administration (SSA), and other agencies to ensure that individuals already in their payment systems would receive their EIPs without further action. This applied to:
- Veterans receiving VA Disability Compensation, Pension, or Survivors’ Benefits: If these benefits were directly deposited, the EIP generally followed suit.
- Veterans also receiving Social Security benefits (SS, SSI, SSDI): Payments for these individuals were also automatically sent to their existing direct deposit accounts.
The IRS had access to the payment information for these beneficiaries, allowing them to issue the stimulus payments efficiently. For many, the payment simply appeared in their bank account, often with a description like "IRS TREAS 310 TAX REF" or "IRS TREAS 310 EIP."
The "Non-Filer" Conundrum and the IRS Non-Filers Tool
While automatic payments covered many veterans, a significant portion of the veteran community, especially those on fixed incomes or those whose only income was from VA benefits, are not typically required to file federal income tax returns. This created a potential hurdle for receiving their stimulus checks, particularly if they had not filed taxes in recent years or if they needed to claim additional payments for dependents.
To address this, the IRS created a dedicated "Non-Filers: Enter Payment Info Here" tool. This online portal was specifically designed for individuals who were not required to file a tax return but needed to provide the IRS with their direct deposit information to receive their stimulus payment.
Who still needed to use the Non-Filers Tool (or file a tax return later):
- Veterans who ONLY received VA benefits (not SS/SSI/SSDI) and did NOT file a tax return in 2018, 2019, or 2020: While the VA shared some data, the most reliable way for these individuals to ensure they received their payment, especially if they needed to claim dependents, was to use the Non-Filers tool.
- Veterans who received automatic payments but had qualifying dependents (children under 17 for EIP1, or any qualifying dependent for EIP2 and EIP3) for whom they did not receive the additional payment: Even if the initial payment for the veteran was automatic, the IRS might not have had dependent information if no tax return was filed. The Non-Filers tool allowed them to add this information.
- Veterans who had recently changed bank accounts or mailing addresses: If the IRS had outdated information, using the tool (or filing a return) was essential to update their details.
Important Note: While the Non-Filers tool was critical for the first and second EIPs, it was eventually phased out. For any missed stimulus payments now, the primary method to claim them is through the Recovery Rebate Credit on a tax return.
Claiming Missed Payments: The Recovery Rebate Credit
If you are a veteran and believe you were eligible for one or more stimulus payments but did not receive them, or received less than the full amount, you can still claim the missed payment(s) by filing a federal income tax return for the relevant year and claiming the Recovery Rebate Credit (RRC).
This is the official and current method for retroactively receiving your EIPs. The RRC functions like a tax credit that reduces your tax liability or results in a refund if your tax liability is already zero.
Here’s how to claim the Recovery Rebate Credit:
Determine Which Payment(s) You Missed:
- For the First and Second EIPs (2020 payments): You need to file a 2020 federal income tax return. The Recovery Rebate Credit worksheet is part of Form 1040 or 1040-SR (U.S. Tax Return for Seniors).
- For the Third EIP (2021 payment): You need to file a 2021 federal income tax return. Again, the Recovery Rebate Credit worksheet is part of Form 1040 or 1040-SR.
Gather Necessary Information:
- Social Security Number (SSN): For yourself, your spouse (if filing jointly), and all dependents.
- Your Adjusted Gross Income (AGI): This will be needed if you choose to use tax software.
- Any IRS Notices (Letter 1444, 1444-B, 6475): The IRS sent notices (like Letter 1444, 1444-B for the first two EIPs, and Letter 6475 for the third EIP) confirming the amount of stimulus payment you received. It is crucial to have these letters as they contain the exact amount the IRS believes it sent you. If you don’t have them, you can often find the information in your IRS online account.
- Bank Account Information: For direct deposit of your refund.
Choose Your Filing Method:
- IRS Free File: If your income is below a certain threshold (typically around $79,000 for 2023 tax year, check current IRS guidelines), you can use IRS Free File software, which is offered by commercial partners through the IRS website. This is a great option for veterans as it guides you through the process, including claiming the RRC.
- Commercial Tax Software: Programs like TurboTax, H&R Block Tax Software, or TaxAct can also help you file. They will ask questions about your stimulus payments received and automatically calculate the RRC.
- Tax Professional: If your situation is complex, or you prefer assistance, a tax professional (like a CPA or Enrolled Agent) can prepare and file your return.
- VITA/TCE Programs: The IRS offers free tax help through the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs. These programs are often available at community centers, libraries, and even some VA facilities. They are an excellent resource for veterans, especially those with lower incomes or those who need help with basic tax returns and claiming credits like the RRC.
Complete Your Tax Return:
- When completing Form 1040 or 1040-SR, you will be prompted to enter the amount of stimulus payments you already received for that tax year.
- The tax software or the form instructions will guide you to calculate the Recovery Rebate Credit on Schedule 3, Line 30.
- The system will compare what you were eligible for versus what you received. If you received less than your eligible amount, the difference will be added to your refund or reduce your tax owed.
File Your Return:
- E-filing is the fastest and most accurate way to receive your refund.
- If mailing, ensure you sign the return and include all necessary forms.
Specific Scenarios and What to Do
Let’s break down common situations for veterans:
Scenario 1: I received all my VA/SS benefits via direct deposit and got all my stimulus checks automatically.
- Action: No further action is needed regarding stimulus payments. You should still file your regular tax return if required. Keep IRS Letter 6475 (for the third EIP) and similar notices for your records.
Scenario 2: I receive VA/SS benefits, but I never received any stimulus checks, or only received a partial amount.
- Action: File a 2020 tax return (for EIP1 & EIP2) and/or a 2021 tax return (for EIP3) and claim the Recovery Rebate Credit. Use IRS Free File, tax software, or VITA/TCE. Be sure to report any amounts you did receive accurately.
Scenario 3: I am a "non-filer" (don’t usually file taxes) and never used the IRS Non-Filers tool, and I didn’t get my stimulus.
- Action: This is the most common situation for missed payments. You must file a tax return for the relevant year(s) to claim the Recovery Rebate Credit. Even if your income is zero or solely from non-taxable VA benefits, filing a return is the only way to get these missed payments now.
Scenario 4: I received my stimulus, but I had a new dependent (e.g., a new baby, or a child who became eligible) and didn’t get the extra payment for them.
- Action: For EIP1 (2020), you would have claimed the dependent on your 2020 tax return via the RRC. For EIP2 (2020) and EIP3 (2021), you would also claim the dependent on your 2020 or 2021 tax return, respectively, through the RRC. The credit will be calculated based on your new household size.
Scenario 5: The veteran passed away.
- Action: Generally, a payment cannot be issued for someone who died before the relevant eligibility date for each EIP. However, if a payment was issued to a deceased individual, it might need to be returned to the IRS. There are specific rules regarding this, and it’s best to consult IRS guidance or a tax professional for deceased taxpayer situations.
Important Considerations and Tips for Veterans
- Beware of Scams: The IRS will never call, text, or email you asking for personal or financial information related to stimulus checks. All official communications will come via mail. Be extremely wary of anyone claiming they can "get you your stimulus faster" for a fee.
- Keep Records: Retain copies of any IRS notices (like Letter 6475) and your filed tax returns. These documents prove the amounts you received and claimed.
- IRS.gov is Your Official Source: For the most up-to-date and accurate information, always refer to the official IRS website (IRS.gov). They have dedicated pages for each Economic Impact Payment and the Recovery Rebate Credit.
- Update Your Information: Ensure your direct deposit information and mailing address are current with the VA and, if you file taxes, with the IRS. Outdated information is a common reason for payment delays or issues. You can update your VA direct deposit information through VA.gov or by calling 1-800-827-1000.
- No Impact on Benefits: Reiterate that receiving stimulus payments does not count as income for federal benefit programs and does not affect your eligibility or payment amounts for VA benefits, Social Security, Medicaid, SNAP, or other federal programs.
- Act Promptly: While there are deadlines for filing tax returns to claim the RRC, it’s always best to file as soon as you are able to avoid further delays.
Resources for Veterans
- IRS.gov: The official source for all tax-related information, including the Recovery Rebate Credit.
- IRS Free File: Provides access to free tax preparation software for eligible taxpayers.
- Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE): Free tax help for qualifying individuals, including many veterans. Search for a location near you on the IRS website.
- Taxpayer Advocate Service (TAS): An independent organization within the IRS that helps taxpayers resolve problems with the IRS.
- Department of Veterans Affairs (VA): While the VA doesn’t handle stimulus payments directly, they can help with general benefit inquiries and updating your direct deposit information, which is crucial for future federal payments.
- Veterans Service Organizations (VSOs): Organizations like the American Legion, VFW, DAV, and others often have accredited service officers who can provide guidance on various benefits, including where to find tax help.
Conclusion
For veterans who served our nation, the stimulus checks represented a vital lifeline during a challenging period. While many received their payments automatically through their existing VA or Social Security direct deposit information, those who didn’t file taxes or had specific circumstances may still need to take action.
The good news is that the mechanism to claim any missed Economic Impact Payments is readily available through the Recovery Rebate Credit when filing a federal tax return for the relevant year. By understanding the process, gathering the necessary information, and utilizing the free resources available, veterans can ensure they receive the financial relief they are entitled to, honoring their service with the support they deserve. Don’t leave money on the table – take the steps to claim what’s yours.