The economic landscape of the past few years, profoundly shaped by the COVID-19 pandemic, saw the U.S. government implement several rounds of Economic Impact Payments (EIPs), commonly known as stimulus checks. These payments were designed to provide financial relief to individuals and families during unprecedented times. For many military families, particularly those receiving benefits like CHAMPVA, questions arose about their eligibility and how to access these crucial funds.
If you are a CHAMPVA beneficiary and are wondering whether you were eligible for a stimulus check, or if you believe you missed out on a payment you were due, this comprehensive guide is for you. We’ll demystify the rules, clarify the connection (or lack thereof) between CHAMPVA and EIPs, and provide clear steps on how to claim any funds you may still be owed.
Understanding the Stimulus Checks: A Brief Overview
Before diving into the specifics for CHAMPVA recipients, it’s essential to understand what the stimulus checks were and their underlying purpose. The U.S. government issued three primary rounds of Economic Impact Payments:
- First EIP (CARES Act, Spring 2020): Up to $1,200 per eligible adult and $500 per qualifying child dependent.
- Second EIP (CRRSAA Act, December 2020/January 2021): Up to $600 per eligible adult and $600 per qualifying child dependent.
- Third EIP (American Rescue Plan Act, March 2021): Up to $1,400 per eligible adult and $1,400 per qualifying child dependent.
These payments were essentially advance payments of a refundable tax credit known as the "Recovery Rebate Credit." They were administered by the Internal Revenue Service (IRS) and largely based on information from taxpayers’ most recent tax returns (2019 or 2020).
CHAMPVA and Stimulus Check Eligibility: The Crucial Distinction
This is perhaps the most important point for CHAMPVA beneficiaries: Receiving CHAMPVA benefits itself did not directly determine your eligibility for a stimulus check, nor did it disqualify you.
CHAMPVA (the Civilian Health and Medical Program of the Department of Veterans Affairs) is a healthcare benefit for certain dependents and survivors of veterans. It is not an income-based benefit in the same way that Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) might be. Instead, CHAMPVA eligibility is tied to the veteran’s service-connected disability status, death, or other specific criteria.
Therefore, whether you received a stimulus check was primarily determined by:
- Your Adjusted Gross Income (AGI): There were income thresholds for each payment. If your AGI exceeded these thresholds, your payment would be reduced or eliminated.
- Your Tax Filing Status: (Single, Married Filing Jointly, Head of Household).
- Whether You Were Claimed as a Dependent: If someone else claimed you as a dependent on their tax return (e.g., a parent claiming an adult child, or a spouse claiming another spouse if not filing jointly), you generally were not eligible for your own stimulus payment.
- Possession of a Valid Social Security Number (SSN): For each eligible individual and qualifying child.
Many CHAMPVA beneficiaries are spouses or children of veterans who may not have significant taxable income of their own. For example, a surviving spouse receiving only VA DIC (Dependency and Indemnity Compensation) and/or Social Security survivor benefits might not be required to file a tax return. This situation, known as being a "non-filer," was a common reason why eligible individuals missed out on their stimulus payments.
Who Was Generally Eligible? (General Criteria)
To be eligible for the full amount of the stimulus checks, you generally needed to meet the following criteria for each round:
- First EIP:
- AGI up to $75,000 for single filers, $112,500 for Head of Household, or $150,000 for Married Filing Jointly.
- Not claimed as a dependent on someone else’s tax return.
- Had a valid SSN.
- Second EIP:
- AGI up to $75,000 for single filers, $112,500 for Head of Household, or $150,000 for Married Filing Jointly.
- Not claimed as a dependent.
- Had a valid SSN.
- Third EIP:
- AGI up to $75,000 for single filers, $112,500 for Head of Household, or $150,000 for Married Filing Jointly.
- Not claimed as a dependent.
- Had a valid SSN or ITIN.
Note: The income thresholds caused payments to phase out above these amounts.
The "Non-Filer" Challenge and the Recovery Rebate Credit
As mentioned, a significant number of CHAMPVA recipients might be "non-filers." This means they were not required to file annual income tax returns because their income was below the filing threshold or came from non-taxable sources (like VA disability compensation).
Initially, the IRS set up a "Non-Filers: Enter Payment Info Here" tool to allow individuals who didn’t typically file taxes to provide their information to receive stimulus checks. However, this tool is no longer available.
If you were a non-filer or simply did not receive a stimulus payment you were eligible for, the only way to claim it now is by filing a federal income tax return and claiming the "Recovery Rebate Credit."
Steps to Take If You Believe You Missed a Stimulus Payment
Even if it’s been a while, you can still claim any stimulus payments you were due. Here’s how:
Step 1: Determine Which Payments You Missed
Review your records and determine which of the three EIP rounds you believe you missed.
- First EIP: Up to $1,200 (individual) / $2,400 (joint) + $500 per child.
- Second EIP: Up to $600 (individual) / $1,200 (joint) + $600 per child.
- Third EIP: Up to $1,400 (individual) / $2,800 (joint) + $1,400 per child.
You can check your IRS online account (if you have one set up) for your EIP amounts. This account provides a summary of your tax records, including the amounts of any stimulus payments you received.
Step 2: Gather Necessary Information
Before you can file, you’ll need:
- Your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
- Your spouse’s SSN/ITIN (if filing jointly).
- SSNs/ITINs for any qualifying children.
- Any income documentation: Even if you didn’t think you had taxable income, gather any W-2s, 1099 forms (1099-R for retirement, 1099-NEC for contract work, 1099-INT for interest, etc.). Remember, VA disability compensation is generally not taxable.
- Bank account information: For direct deposit of any refund.
- Previous tax returns: If you’ve filed before.
Step 3: File a Federal Income Tax Return
This is the crucial step. You will need to file a tax return for the tax year corresponding to the missed stimulus payment:
- For the First and Second EIPs: You need to file a 2020 federal income tax return.
- For the Third EIP: You need to file a 2021 federal income tax return.
Even if your income was below the filing threshold and you weren’t generally required to file, you MUST file a return to claim the Recovery Rebate Credit.
Step 4: Claim the Recovery Rebate Credit
On your 2020 and/or 2021 Form 1040 (U.S. Individual Income Tax Return), you will find a line specifically for the Recovery Rebate Credit.
- For 2020: Look for Line 30 on Form 1040.
- For 2021: Look for Line 30 on Form 1040.
You will need to accurately calculate the amount of the credit you are owed. Most tax software will help you do this automatically. If you use tax software, it will ask you if you received the stimulus payments and in what amounts. Based on your answers and your eligibility, it will calculate the credit you are due.
How to File Your Tax Return:
- Tax Software: Many commercial tax software programs (e.g., TurboTax, H&R Block, TaxSlayer) can help you file past-due returns. Some even offer free filing options for lower-income individuals (look for IRS Free File if your income qualifies).
- IRS Free File: If your Adjusted Gross Income (AGI) is below a certain threshold (it changes annually, check the IRS website), you may be able to use IRS Free File software, which is a partnership between the IRS and tax software companies.
- Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE): These programs offer free tax help to qualifying individuals, including military families, persons with disabilities, and the elderly. They can assist with current and prior-year returns. Use the IRS website to find a VITA/TCE site near you.
- Tax Professional: A certified public accountant (CPA) or enrolled agent can prepare and file the return for you, though this comes with a fee.
Important Reminders for Filing:
- File Electronically if Possible: E-filing is generally faster and reduces errors. However, for prior-year returns, there might be limitations on how far back you can e-file. If you can’t e-file, you’ll need to print and mail your return.
- Keep Copies: Always keep a copy of your filed tax return and any supporting documentation for your records.
- Be Patient: Processing times for mailed returns and prior-year returns can be longer.
What If You Filed But Still Didn’t Get Your Payment?
If you filed your taxes and claimed the Recovery Rebate Credit, but you haven’t received your refund or payment, you can:
- Check "Where’s My Refund?": For refunds, use the IRS’s "Where’s My Refund?" tool online.
- Review Your IRS Account: Log into your IRS online account to see your tax transcript and payment history.
- Contact the IRS: If online tools don’t provide answers, you may need to call the IRS directly. Be prepared for potentially long wait times.
Important Considerations for CHAMPVA Families
- Dependents: Remember, the stimulus payment for a qualifying child was sent to the person who claimed that child as a dependent on their tax return. If you claimed your CHAMPVA-eligible child, you would have received their portion of the EIP. The child does not get a separate payment.
- Deceased Individuals: If an eligible individual passed away before receiving their stimulus payment, their surviving spouse or executor might be able to claim it on their behalf, typically on the deceased’s final tax return. Rules vary by payment round, so check IRS guidance.
- Protect Yourself from Scams: The IRS will never call, text, or email you demanding immediate payment or threatening to arrest you. Be wary of anyone offering to get you your stimulus money for a fee.
- No Future Stimulus Checks Expected: As of now, there are no plans for additional broad-based stimulus payments. The focus is on claiming the past payments through the Recovery Rebate Credit.
Beyond the Stimulus: Financial Planning for CHAMPVA Families
While securing any missed stimulus payments is important, it’s also an opportune time for CHAMPVA families to review their broader financial health.
- Budgeting: Create a realistic budget to manage income and expenses, including healthcare costs that CHAMPVA may not fully cover.
- Emergency Fund: Aim to build an emergency fund of 3-6 months of living expenses. This provides a crucial safety net for unexpected costs.
- Explore Other VA Benefits: Beyond CHAMPVA, ensure you’re aware of and applying for all other VA benefits you or your veteran family member may be eligible for, such as Aid & Attendance, Housebound benefits, or educational benefits.
- Financial Literacy: Utilize resources from the VA, military aid societies (e.g., Army Emergency Relief, Navy-Marine Corps Relief Society, Air Force Aid Society), or non-profit organizations that offer financial counseling for military families.
Conclusion
For CHAMPVA recipients, eligibility for stimulus checks was never about the healthcare benefit itself, but rather about meeting general tax-based criteria related to income, filing status, and dependency. If you were eligible but missed out, the Recovery Rebate Credit on a prior-year tax return is your pathway to receiving those funds.
Don’t let the passage of time deter you. By taking the necessary steps to file or amend your tax returns, you can still claim the financial relief you were due. This proactive approach not only secures past payments but also reinforces good financial practices for the future well-being of your military family.