Eligibility and Application for Stimulus Checks: Guidance for Unemployed and Self-Employed Individuals

In the current economic landscape, many individuals are finding themselves without work or income. You might wonder, If I don't work or draw income, am I eligible for a stimulus check? The answer is yes, as long as you meet the eligibility criteria. This article covers everything you need to know about applying for a stimulus check if you're unemployed or self-employed.

Eligibility Criteria

For the first round of stimulus checks, the primary eligibility requirement was having an income level below $75,000. Specifically, to receive the full amount, you had to meet the following conditions:

You had to claim a Social Security Number (SSN), not an Individual Taxpayer Identification Number (ITIN). You had to be eligible to be claimed as a dependent by another individual.

For individuals on Supplementary Security Income (SSI) or Social Security Disability Insurance (SSDI), the stimulus payment was automatically made. If you didn't receive the payment in the first round, you should have received it in the second round, assuming your eligibility criteria were met.

Applying for a Stimulus Check

The process for applying for a stimulus check involves filing an income tax form and requesting the rebate on it. Even if you owe no taxes, you still need to file to request the rebate. A recommended option is to file using the Free File program provided by the IRS.

Steps to Apply

Verify Eligibility: Ensure you meet the income and other eligibility criteria mentioned above. File Taxes: File your income tax form. If you are normally not required to file, this step is still necessary as you have to claim the rebate. Include the Rebate Request: On your tax form, there should be a section for requesting the rebate. Make sure to include any necessary personal details. Direct Deposit: If you want to receive the stimulus check directly into your bank account, provide your bank account information in the appropriate section of the tax form. This method is generally faster and more convenient than waiting for a mailed check.

Additional Resources

If you missed out on a payment during the first round, you can use the NonFilers portal on the IRS website. The deadline for this portal was November 31, 2020. By providing your personal details through this portal, you can receive a direct payment.

Claiming the Recovery Rebate Credit

If you did not receive the full amount of the stimulus check, you may be eligible to claim the Recovery Rebate Credit on your 2020 tax return. This credit is available if you:

Were a U.S. citizen or resident alien in 2020. Did not claim yourself as a dependent by someone else in 2020. Had a valid SSN that was issued before the due date of your 2020 tax return, including extensions.

To claim the Recovery Rebate Credit, you need to file Form 1040 or 1040-SR. Even if you are not typically required to file, you must file this form if you want to claim the credit.

Conclusion

Even if you are currently unemployed or self-employed, you may still be eligible for a stimulus check. By understanding the eligibility requirements and following the appropriate steps, you can ensure that you receive the funds to which you are entitled. Whether you receive a first-time payment or are seeking to claim the Recovery Rebate Credit, the process is straightforward once you have the necessary information.