How Do Homeless People Receive Stimulus Checks
- Posted on: 28 March 2021
- HRASHID
The IRS has started issuing third stimulus payments, the “vast majority” of which are expected to be paid by direct deposit, the federal body said. But what about payments for those who don’t have bank accounts or a fixed address, such as the homeless? The issue recently sparked debate on Twitter, with some users wondering how the homeless can access stimulus funds.
One tweet, by model and activist Hamdia Ahmed, that highlighted the issue has been shared more than 100,000 times in less than 24 hours.
NEWSWEEK
An IRS spokesperson told Newsweek the agency works “extensively with partner and outreach groups” to help the homeless sign up, noting that “more remain eligible.”
“The IRS continues working aggressively with partner groups inside and outside the tax community to help as many people, including those in the homeless community, receive the stimulus payments as possible,” they added.
If you are experiencing homelessness, or know somebody who is, find out below how to avoid missing out on the next payment.
Last year, people experiencing homelessness were directed to register with the IRS using the “Non-Filers” tool at the IRS website in order to claim their stimulus payments.
The deadline for registering was November 21, 2020. But those who missed the deadline could still be eligible for stimulus payments, if the following apply:
How Do Homeless People Receive Stimulus Checks?
People Experiencing Homelessness May Qualify For An Economic Impact Payment
COVID Tax Tip 2020-132, October 6, 2020
People experiencing homelessness may be eligible for a $1,200 Economic Impact Payment and $500 for each qualifying child under age 17. To get this payment, they must register with the IRS by using the free Non-Filers: Enter Payment Info Here tool by Saturday, November 21, 2020.
If someone’s income is below $12,200, or $24,400 if they’re married, they probably don’t file a tax return. That means the IRS may not have enough information to issue their payment.
The free Non-Filers: Enter Payment Info Here tool is available in English and Spanish.
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Every American citizen who earned less than $75,000 or$150,000 total for married couples in 2019 or 2020 has been eligible for the three rounds of pandemic stimulus: the $1,200 check last spring, the $600 check in December, and the $1,400 checks that are on their way right now.
Thats a significant chunk of money, enough to be life-changing for people saving up for a security deposit for an apartment, finally getting needed medical care, paying for the transition into a better job,or dealing with unexpected life events. In the latest stimulusbill, theres even more money for anyone eligible for unemployment and anyone with dependent children.
But for the people who need the checks most, they can be hard to get. Thats because the primary mechanism by which the government sends the checks to people is throughtheir tax filing that is, stimulus checks are sent automatically to households that filed tax returns. But lots of Americas poorest households dont file taxes because their income is low enough that its not required.ProPublica estimated in the fall that 9 million Americans who were eligible for a stimulus check didnt receive one, mostly because their income was so low they didnt file taxes.
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How Homeless People Can Access Stimulus Payments
By Robert Davis | March 17, 2021 | Awareness
On Monday, the Internal Revenue Service announced it was working to quickly deliver the third round of Economic Impact Payments authorized by Congress in the American Rescue Plan Act to millions of Americans.
A majority of the $1,400 Economic Impact Payment included in the Act will be direct-deposited into taxpayers accounts, the agency said. But, for people without bank accounts or fixed addresses like people experiencing homelessness, the process can be tougher.
Between filing taxes, finding a stable address, and waiting for the funds to land in a bank account or mailbox, people experiencing homelessness often face unnecessary delays in receiving their stimulus payments.
Similarly, debt collectors are currently allowed to seize stimulus payments as compensation. While lawmakers are working to remedy this problem, many people experiencing homelessness need access to their EIPs today.
Here are a few ways homeless people can recover their EIPs.
Yes Homeless People Are Eligible For Stimulus Checks
If youre unhoused right now, youre eligible to receive stimulus money intended to prop up the economy during the coronavirus pandemic. You dont have to be working, and getting this money wont make you ineligible to get other aid.
If you owe money to the federal government, like old taxes you didnt pay, your stimulus payment cant be garnished to cover those debts.
The reason you havent received stimulus money is most likely because the IRS doesnt have enough information about you to determine youre eligible and send you a payment. If you dont file taxes each year or receive government benefits like Social Security, there may be no recent proof of your income or location in IRS systems. The IRS referenced peoples tax returns from 2018, 2019 or 2020 to determine eligibility the most recent round only checks against 2019 or 2020 tax returns or benefit records. .
Last fall, the IRS estimated that as many as 9 million people who were eligible for a stimulus payment hadnt received one, many of them unhoused.
However, there is a hurdle if you want to claim your stimulus payment: Youll need to file a 2020 tax return.
By filing a 2020 tax return, an unhoused person may be able to also access other funds beyond their stimulus payment, like the Earned Income Tax Credit or the Child Tax Credit , Smith says.
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Economic Impact Payments For Individuals Who Dont Have A Permanent Address
Individuals can claim an Economic Impact Payment or other credits even if they donât have a permanent address. For example, someone experiencing homelessness may list the address of a friend, relative or trusted service provider, such as a shelter, drop-in day center, or transitional housing program on the return filed with the IRS. If they are unable to choose direct deposit, a check for the tax refund and a check or debit card for the third Economic Impact Payment can then be mailed to this address. Also, free post office boxes may be available by applying to the local post office. The postal service also has âGeneral Deliveryâ mail service for people without a permanent address.
Many Homeless People In Seattle Have Yet To Get Even One Stimulus Check And The Clock Is Ticking
Every day at the Compass Center services office, where around 15,000 homeless and low-income Seattleites get their mail and use banking services, people ask about the stimulus check.
Only a few hundred checks have ever arrived, according to Emily Nye, day services lead at the center.
The people who havent received theirs are frustrated. They have punched walls, cried, yelled and called the police, saying staff stole their checks, said Nye.
Its infuriating we wish we could do more, she said.
Congress has now passed several rounds of stimulus payments which combined equal $3,200 maximum per person intended to offset layoffs, furloughs and other effects of the pandemic-battered economy. The checks have gone to about 161 million people in the U.S., according to a Thursday estimate from the Internal Revenue Service.
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Get Free Help From Irs Partners
Alternatively, anyone who qualifies for the EITC or does not have a filing requirement but is filing to get an Economic Impact Payment also qualifies for free tax help from a trained community volunteer tax preparer. Through VITA and TCE , volunteers prepare basic tax returns at thousands of tax help sites nationwide.
Please note that some VITA/TCE sites are not operating at full capacity and others are not opening this year. To find the nearest location, visit the Free Tax Return Preparation site on IRS.gov, or call . VITA/TCE site availability is updated throughout the filing season, so check back if there aren’t any sites listed nearby.
The IRS also continues to work extensively with community groups across the country to get people to file tax returns and receive all the Economic Impact Payments and credits they’re entitled to. These efforts helped lead to more than 8 million people last year to submit tax returns who normally don’t file.
Permanent Address Not Required
People can claim an Economic Impact Payment or other credits even if they don’t have a permanent address. For example, someone experiencing homelessness may list the address of a friend, relative or trusted service provider, such as a shelter, drop-in day center or transitional housing program, on the return filed with the IRS. If they are unable to choose direct deposit, a check or debit card for the tax refund and the third Economic Impact Payment can then be mailed to this address.
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Federal Stimulus Checks Can Be Lifesavers For Homeless People If They Can Get Them
A direct flow of dollars from the federal government has been a lifeline for many Americans during the pandemic.
But for some of the country’s neediest homeless people the barriers to getting this cash have felt insurmountable. With no bank accounts, little access to the internet and a general lack of awareness that the money is available, many homeless people haven’t received the stimulus checks.
Activists for homeless people say this money could be potentially transformative for people who lack the savings to put down first and last months’ rent on a lease or have mounting medical bills.
For Terrance Wright, a 25-year-old restaurant worker, it could be mean getting out of a downtown hotel room the city has been renting him since he left Echo Park Lake in February. Wright had stayed in the park off and on for over a year and received a hotel room, for which he’s been grateful, during a spurt of outreach conducted in advance of the park’s closure last month.
He received one of the checks last year while living with a friend in Washington state and looking for work. He’s back in Los Angeles now and is eagerly awaiting another. He has a job interview at a downtown restaurant and hopes the combination of a salary and the stimulus money will be enough for him to find somewhere permanent to stay.
“I havent got another one yet, but man, I hope I get it soon.”
The next challenge, though, is how.
Building Outreach Capacity Through Partnerships And Other Resources
Assess your organizations outreach capacity and what type of roles you can fill. Does your organization have the capacity to assist, refer, or notify individuals who are seeking help with the payments?
Once you know your capacity, reach out to other local organizations to see what outreach is already happening and how you can plug in. Start by contacting your local United Way.
On-the-ground support is the most impactful at this time. Volunteer Income Tax Assistance sites which provide free, quality tax services across the country are typically a resource for in-person tax support. Due to COVID-19, most VITA sites shut down or transitioned to remote support.
If you cannot provide on-the-ground support, share other available resources. United Ways 211 Helpline answers questions about eligibility and help callers find a local VITA site.
Code for Americas Get Your Refund Service is a free, mobile-friendly platform that uses VITA volunteers to help people file tax returns to get their stimulus checks and other tax refunds if eligible. Alternatively, if people dont have a filing requirement, they can use GetCTC.org to file a simplified tax return and get all three of their stimulus checks. People dont need to be eligible for the Child Tax Credit to use GetCTC to get their stimulus checks.
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Getting Stimulus Payments To Homeless Communities
People who are homeless or transient may not know they qualify for the $1,200 Economic Impact Payments also called stimulus checks” that went out last Spring. They might also get an additional $500 for each qualifying child and they dont need an income to claim the payment. Thats why the FTC is working with the IRS to get the word out about how people can still collect their money and we need your help.
If you know anyone who doesnt have a permanent address , heres what they need to know:
- The deadline to enter a claim for payment is October 15, 2020. To sign up, people need:
o Their name plus a mailing address and an email address.
o Date of birth and valid Social Security number
o Bank account information, if any
o Identity Protection PIN, if they’ve gotten one from the IRS
o License or state ID, if any
o Name, SSN, and relationship for each qualifying child
- People who dont normally file income taxes may still be eligible for a payment. Those with an income below $12,200 can get instructions on how to use the IRSs non-filers tool, then file a claim at IRS.gov/nonfilereip.
- People who get veterans or railroad retirement, Social Security Income or Social Security benefits still qualify for this payment.
What If They Didnt File A Tax Return In 2019 Or 2020
There are still ways for homeless men and women to receive an Economic Impact Payment, even if they havent yet filed a tax return.
Colorado Springs-based mental health nonprofit Another Life Foundation serves the homeless population as a Volunteer Income Tax Assistance provider. They will be on the Springs Rescue Mission campus April 1 and 8 to assist guests who have not already received the stimulus payment, ensuring that the IRS knows where and how to send their check or deposit.
Another Life Foundation has partnered with the IRS to offer free income tax preparation to community members, with a household income of $57,000 a year or less, according to the organizations website.
Those who havent received any stimulus funds so far could still apply to receive all three payments by filing a 2020 tax return and claiming the Recovery Rebate Credit. For those interested there are also free online tools to file taxes for anyone with less than $72,000 in income.
Even if you dont have a computer, if you have a smartphone, you can access Free File online and do your tax return, according to a recent IRS statement. If you have no taxable income, simply answer the questions including those requesting information needed to compute the Recovery Rebate Credit.
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A postal service spokesperson said they make every effort to deliver to the three facilities Whitson named, and that they dont declare such facilities fraudulent.
But Alison Eisinger, executive director of the Seattle-King County Coalition on Homelessness, says other members of her nonprofit coalition are seeing similar problems with the second and third stimulus checks. At Ballard Food Bank, she said, the postal service gave a heads-up when the first round of checks was coming last year, but theres been no such communication about the second or third.
These are all things that, if youre housed or have access to the public libraries, are more addressable, I would say, said Eisinger. Theyre still barriers, but under the current circumstances they are blockades.
Who Is Eligible For The Stimulus
President Joe Biden signed the American Rescue Plan Act of 2021 into law on March 11. The $1.9 trillion law included direct payments of up to $1,400 for eligible Americans, plus $1,400 for each dependent child, with a phase out for higher earners.
They are certainly eligible, said Donald Whitehead, executive director for the National Coalition for the Homeless.
The Internal Revenue Service is working aggressively with partner groups inside and outside the tax community to help as many people, including those in the homeless community, receive the stimulus payments as possible, IRS spokeswoman Jodie Reynolds said in an email to USA TODAY.
Homeless people were eligible for two rounds of stimulus payments in 2020, as well.
Assuming that the person who is homeless or unsheltered has an income below the income threshold, they are eligible, Laura Scherler, senior director of economic mobility for the United Way, told USA TODAY.
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Opening A Bank Account
The fastest way to receive a stimulus payment is through a direct deposit into a bank account. However, people experiencing homelessness often avoid banking because they lack identifying documents, bank account activity fees, and minimum deposit requirements, or their applications are rejected altogether if they have a low credit score.
Luckily, some banks waive fees and minimum deposits for low-to-no-income customers. Others do not use Chexsystems, a national credit reporting agency created by the Federal Fair Credit Reporting Act, to determine eligibility.
Some banks that do not use Chexsystems include:
- BBVA Compass
How To Get Your $1400 Stimulus If You Are Homeless Right Now
The IRS has started issuing third stimulus payments, the “vast majority” of which are expected to be paid by direct deposit, the federal body said.
But what about payments for those who don’t have bank accounts or a fixed address, such as the homeless? The issue recently sparked debate on , with some users wondering how the homeless can access stimulus funds.
One tweet, by model and activist Hamdia Ahmed, that highlighted the issue has been shared more than 100,000 times in less than 24 hours.
I was really upset that homeless people did not have access to the $1,400 stimulus check. I just found this out. If you are homeless, you can go to a tax return office where they will file something called EIP return. They will put the money on a debit card after.Retweet.!
Hamdia Ahmed
An IRS spokesperson told Newsweek the agency works “extensively with partner and outreach groups” to help the homeless sign up, noting that “more remain eligible.”
“The IRS continues working aggressively with partner groups inside and outside the tax community to help as many people, including those in the homeless community, receive the stimulus payments as possible,” they added.
If you are experiencing homelessness, or know somebody who is, find out below how to avoid missing out on the next payment.
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