For many Veterans, the past few years brought unprecedented financial challenges, alongside a series of economic impact payments, commonly known as stimulus checks. These payments were designed to provide a much-needed boost during times of economic uncertainty. However, for a significant number of VA pensioners, including those who depend on their monthly $1,200 (or varying amounts) for their livelihood, receiving these checks wasn’t always straightforward.
Confusion arose for several reasons: Were VA benefits considered income? Did receiving a VA pension automatically qualify you? What if you didn’t normally file taxes? This article aims to cut through that confusion, providing a comprehensive guide for VA pensioners on how to claim any missing stimulus checks, even if you never filed a tax return before.
Understanding Your Eligibility as a VA Pensioner
Let’s start with the most crucial point: Yes, if you are a VA pensioner, you were (and still are) generally eligible for stimulus checks.
The stimulus payments were designed for most U.S. residents, including those who receive federal benefits like Social Security, Supplemental Security Income (SSI), Railroad Retirement benefits, and Veterans Affairs (VA) benefits, including pension and disability compensation.
Key Eligibility Criteria:
- Valid Social Security Number (SSN): You, your spouse (if filing jointly), and any qualifying dependents must have a valid SSN.
- Not a Dependent: You cannot be claimed as a dependent on someone else’s tax return.
- Adjusted Gross Income (AGI) within Limits: While VA pension benefits are generally not considered taxable income, the stimulus payments were subject to income phase-outs. However, for most VA pensioners, their income would have been well within the thresholds to receive the full payment.
- First Payment (up to $1,200 individual, $2,400 joint): Full payment for individuals with AGI up to $75,000 ($150,000 for married couples filing jointly).
- Second Payment (up to $600 individual, $1,200 joint): Full payment for individuals with AGI up to $75,000 ($150,000 for married couples filing jointly).
- Third Payment (up to $1,400 individual, $2,800 joint): Full payment for individuals with AGI up to $75,000 ($150,000 for married couples filing jointly).
Crucially, the fact that your VA pension isn’t typically taxable income for filing purposes did NOT disqualify you from receiving stimulus payments. In fact, the IRS worked with the VA to try and get payments to non-filers who received VA benefits.
Why Some VA Pensioners Didn’t Receive Automatic Payments
Despite being eligible, many VA pensioners did not receive their stimulus checks automatically. Several factors contributed to this:
- Non-Filers: The primary reason was that many VA pensioners, especially those whose only income was their VA benefits, are not required to file annual tax returns. Since the IRS primarily used 2018, 2019, or 2020 tax returns to determine eligibility and payment information, those who hadn’t filed had no record with the IRS.
- Lack of Direct Deposit Information: Even if the IRS had your basic information from the VA, they might not have had your direct deposit details. If you received your VA pension via check, the IRS might have sent a paper check, which could have been delayed, lost, or sent to an old address.
- Outdated Information: If you had moved or changed bank accounts since your last interaction with the VA or the IRS, the payment might have been sent to an incorrect address or account.
- IRS Non-Filers Tool (Historical Context): For the first stimulus payment, the IRS created an online "Non-Filers Tool" specifically for people who didn’t usually file taxes but needed to provide their information to receive the payment. Many VA pensioners used this tool successfully. However, this tool is now closed, and any missed payments must be claimed differently.
- Payment Errors: Like any large-scale government program, there were instances of administrative errors, miscalculations, or simply payments getting lost in transit.
The Key to Claiming Missing Stimulus: The Recovery Rebate Credit
If you are a VA pensioner and believe you missed out on one or more stimulus payments, the good news is that it’s not too late. You can still claim these payments by filing a tax return and requesting the Recovery Rebate Credit (RRC).
The Recovery Rebate Credit is essentially how the IRS reconciled stimulus payments on tax returns. It’s a refundable tax credit that applies to the first and second stimulus payments (claimed on your 2020 tax return) and the third stimulus payment (claimed on your 2021 tax return).
How it Works:
- When you file your 2020 or 2021 tax return (even if your income is zero), you will indicate how much, if any, of the stimulus payments you received.
- The tax form (Form 1040, Schedule 3) will then calculate how much you should have received based on your eligibility.
- If you received less than you were owed (or nothing at all), the difference will be added to your tax refund. Even if you owe no taxes, this credit will result in a refund check or direct deposit.
Important Note: You must file a separate return for each year you missed a payment. For example, if you missed the first and second payments, you need to file a 2020 tax return. If you missed the third payment, you need to file a 2021 tax return.
Understanding Each Stimulus Payment and What You Might Be Owed
To effectively claim your missing payments, it helps to understand what each round offered:
First Economic Impact Payment (EIP1) – CARES Act, 2020:
- Amount: Up to $1,200 for eligible individuals, $2,400 for married couples filing jointly, plus $500 for each qualifying child dependent under age 17.
- Based On: Primarily your 2019 tax return (or 2018 if 2019 wasn’t filed).
- Claimed On: Your 2020 tax return via the Recovery Rebate Credit.
Second Economic Impact Payment (EIP2) – CRRSAA, late 2020/early 2021:
- Amount: Up to $600 for eligible individuals, $1,200 for married couples filing jointly, plus $600 for each qualifying child dependent under age 17.
- Based On: Primarily your 2019 tax return.
- Claimed On: Your 2020 tax return via the Recovery Rebate Credit.
Third Economic Impact Payment (EIP3) – American Rescue Plan, 2021:
- Amount: Up to $1,400 for eligible individuals, $2,800 for married couples filing jointly, plus $1,400 for each qualifying dependent (this time, including adult dependents and college students).
- Based On: Primarily your 2020 tax return (or 2019 if 2020 wasn’t filed).
- Claimed On: Your 2021 tax return via the Recovery Rebate Credit.
What Information You’ll Need to File
Even if you don’t typically file taxes, gathering the right information will make the process smoother:
- Social Security Number (SSN): For yourself, your spouse (if applicable), and any dependents.
- Bank Account Information: For direct deposit of your refund (routing and account numbers). If you prefer a paper check, ensure your mailing address is current.
- Your Current Mailing Address: Where the IRS will send any correspondence or paper checks.
- Prior Tax Returns (if applicable): If you’ve ever filed, having a copy can be helpful, though not strictly necessary for claiming the RRC if you had no other income.
- IRS Notices (if you received any):
- Notice 1444: For the first EIP.
- Notice 1444-B: For the second EIP.
- Letter 6475: For the third EIP (issued in early 2022). This letter is crucial as it tells you the exact amount of the third payment the IRS sent you. Keep it safe!
- If you didn’t receive these notices, don’t worry. You can still file. The IRS records will show if a payment was issued.
Step-by-Step: How to File for the Recovery Rebate Credit
The process involves filing a tax return for the relevant year(s). Here’s how to approach it:
Determine Which Year(s) You Need to File For:
- If you missed EIP1 or EIP2 (or both): File a 2020 tax return.
- If you missed EIP3: File a 2021 tax return.
- If you missed all of them: File both a 2020 and a 2021 tax return.
Gather Your Information: Refer to the list above.
Choose Your Filing Method:
- IRS Free File Program: If your AGI was below a certain threshold (typically around $79,000 for 2023, but check current year limits), you can use commercial tax software products offered through the IRS Free File program. These guided programs can help you accurately complete your return. Go to IRS.gov/FreeFile.
- Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) Programs: This is often the best option for VA pensioners. These programs offer free tax help to qualified individuals, including those with disabilities, limited English proficiency, and taxpayers aged 60 and older. IRS-certified volunteers provide free basic income tax return preparation with electronic filing. They can specifically help you claim the Recovery Rebate Credit. Find a site near you at IRS.gov/VITA.
- Tax Software: You can purchase commercial tax software (e.g., TurboTax, H&R Block) and follow their prompts.
- Tax Professional: If your situation is complex or you prefer professional assistance, a paid tax preparer can help.
- Paper Forms: You can download and fill out Form 1040 and Schedule 3 for the relevant year from IRS.gov and mail them in. This method is slower and has a higher chance of error if you’re not used to tax forms.
Complete Form 1040 (and Schedule 3):
- Even if you have no taxable income, you’ll still fill out the basic information on Form 1040.
- On Schedule 3 (Form 1040), Line 19, you will enter the amount of the Recovery Rebate Credit you are claiming. The tax software or VITA/TCE volunteer will guide you through calculating this based on how much you received versus how much you were owed.
- If you had no other income for the year, your AGI will be $0. This is perfectly fine and will not prevent you from receiving the credit.
File Your Return:
- E-File: This is the fastest and most secure way to file. Most tax software and VITA/TCE sites offer e-filing.
- Mail: If filing a paper return, make sure to mail it to the correct IRS address.
Track Your Refund: Once you’ve filed, you can track the status of your refund using the "Where’s My Refund?" tool on IRS.gov. It typically takes a few weeks for mailed returns to process, but e-filed returns are usually much faster.
Special Considerations for VA Pensioners
- Dependents: If you have qualifying dependents (children or other relatives you support), ensure they are correctly listed on your tax return. The stimulus payments included additional money for dependents.
- Deceased Individuals: If a VA pensioner passed away, the rules for claiming stimulus payments can be complex. Generally, payments for deceased individuals should not be claimed unless they passed away after January 1, 2020, and meet specific criteria. Consult the IRS website or a VITA/TCE professional for guidance.
- Guardians/Fiduciaries: If you are a guardian or fiduciary for a VA pensioner, you can file the tax return on their behalf. Ensure you have the proper documentation to do so.
Beware of Scams!
Unfortunately, periods of government payments are ripe for scams. Be extremely vigilant:
- The IRS will NOT call, text, or email you about your stimulus payment. They communicate via mail.
- Never give out personal information (SSN, bank account details) over the phone or email unless you initiated the contact and are certain of the recipient’s legitimacy (e.g., calling the official IRS number).
- Do not click on suspicious links in emails or texts claiming to be from the IRS.
- You do not need to pay to get your stimulus money. Free resources like IRS Free File and VITA/TCE are available.
Where to Get Help
Don’t feel overwhelmed! There are excellent resources available to assist you:
- IRS Website (IRS.gov): The official source for all tax information, forms, and tools. Search for "Recovery Rebate Credit" or "Economic Impact Payments."
- IRS Free File Program: As mentioned, free guided tax preparation software for eligible taxpayers.
- Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE): These are your best bet for free, in-person assistance. IRS-certified volunteers can help you file your return and claim the RRC. They are especially equipped to help seniors and those who don’t normally file.
- Veterans Affairs (VA): While the VA cannot directly help you file your tax return, they can provide general guidance and connect you with resources. Check with your local VA office or Veterans Service Organization (VSO).
Conclusion
If you are a VA pensioner who missed out on any stimulus checks, understand that you were, and still are, eligible. The path to claiming these funds lies in filing a 2020 and/or 2021 tax return and utilizing the Recovery Rebate Credit. Do not be intimidated by the process; free and reliable help is available. By taking action, you can ensure you receive the financial support you were entitled to, providing a well-deserved boost to your VA pension.