Court Rules Incarcerated Individuals Eligible for Stimulus Payments
Court Rules Incarcerated Individuals Eligible for Stimulus Payments
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Two incarcerated people, Colin Scholl and Lisa Strawn, represented by the Equal Justice Society and the firm of Lieff Cabraser, filed suit seeking reversal of an IRS practice of refusing CARES Act (COVID-19 relief fund) stimulus payments to people because they were incarcerated. This suit was brought on behalf of a nationwide class of all people in prison against the IRS among others in August 2020 regarding payments usually $1,200 per person.
In September 2020, a federal court ordered the IRS to cease this practice and on October 7, 2020, ordered the IRS to notify some prison administrators about the change. The Court then extended the deadline for people in prison who must submit a claim in the mail to Oct. 30, 2020. See Scholl v. Mnuchin, No. 4:20-cv-5309- PJH (N.D. Cal.). The government has filed a notice of appeal of the Sept. 24 order, but it has stated that it has not yet decided whether to pursue the appeal according to the Mississippi Center for Justice.
The deadline to receive a stimulus check is October 30, 2020 (postmarked). Your loved one may qualify even if they are incarcerated, does not have a bank account, or income. It is free to file a claim and if they do not have a bank account for direct deposit, the IRS will mail the check.
To file a claim you need only basic information (i.e., your name, prison mailing address, DOB, SSN). Your loved one is eligible to file a claim if all four of the following requirements are satisfied.
- They are a U.S. Citizen or Legal Permanent Resident.
- They are not married to someone who lacks a social security number, or have a child who lacks one, UNLESS they or their spouse served in the Armed Forces in 2019.
- They filed a tax return in 2018 or 2019 or they were exempt from doing so because their income in 2019 was below $12,200 a year or, if married and filing jointly, below $24,400.
- They were not claimed as a dependent on another person’s tax return.
Other helpful documents for determining whether your loved one is eligible and to file a claim if they are;
● Here is a short FAQ.
● Here are the IRS’ instructions for completing the simplified 1040 (en español)
● A blank Form 1040 here for people under 65 (EIP Form 1040)
● A SAMPLE form (containing highlights of fields that need to be filled out & summarizing the IRS instructions for using these stimulus checks only (Sample Form 1040 Updated).
Incarcerated people who filed a 2018 or 2019 tax return or have already submitted a “Non-Filer” claim for stimulus relief to the IRS, will automatically receive a payment by Oct. 24, 2020. Those who do not fall into this category and those who earned less than $12,200 in 2019 (or $24,400 if married and filing jointly) must file a “Non-Filer” claim with the IRS as soon as possible. A post-marked claim must be submitted in the mail by Oct. 30, 2020.
(For more info visit http://www.caresactprisoncase.org/ or click here)
