Getting stimulus money to those who are truly in grave need remains a challenge.
Jeff DeBruyn has seen such hurdles upfront during informal conversations in the past year with visitors to a soup kitchen in Detroit's Corktown neighborhood.
DeBruyn, whose official title is peacekeeper at Manna Community Meals, chats regularly with guests as they pick up food outside St. Peter’s Episcopal Church, where meals once were served in the basement before the COVID-19 pandemic.
Often, as they talk informally, DeBruyn might ask guests if they've gotten their stimulus money yet. If they say they haven't received any money, he says, he might ask if they know why or what the hold up might be.
"Sometimes, people are just categorically 'No, I'm not getting it,' " he said. "And they don't even entertain that it's possible."
Other times, he's been able to try to help some guests research their stimulus at the "Get My Payment" site at IRS.gov. But given that many people have moved several times over the years and may currently be homeless, an address that the IRS has on file may no longer be valid. And they're stuck.
"Majority of the time, we hit a roadblock and I try to help them overcome the roadblock," said DeBruyn, 52.
One suggestion he often makes is that someone can work with the Accounting Aid Society to file a federal income tax return for free to claim that stimulus cash.
For the current third stimulus program, the Internal Revenue Service notes, that people who are experiencing homelessness usually qualify to receive $1,400 for themselves. If they are married or have dependents, they can get an additional $1,400 for each of their family members.
DeBruyn said he can fully understand the challenges that many face. People visiting the soup kitchen aren't able to sit in front of laptops or phones all day. They're not able to stay on the line and hope someone at the IRS will pick up the phone.
"If you're homeless, you're often off the grid," he said. "So you haven't really filed taxes."
Some who followed through and ended up receiving their stimulus money found the extra cash to be helpful in paying bills. Others, he acknowledged, unfortunately ended up using the extra cash to buy drugs or alcohol.
"They struggle. They have a dream that they're going to make good choices. But their addiction overcomes them," he said.
Many people can be left behind when it comes to receiving Economic Impact Payments or stimulus cash. Some of the problem is people don't understand all the rules and they simply assume they don't qualify. Others see one too many extra headaches.
Last year, it was estimated that about 1.5 million people in Michigan could end up at risk of not getting a stimulus payment or could need to wait as long as five months to receive the money via a check sent in the mail, according to research by H. Luke Shaefer, director of Poverty Solutions and the Hermann and Amalie Kohn Professor of Social Justice and Social Policy at the University of Michigan.
The IRS has been reaching out to community groups and employers to connect with people experiencing homelessness, the rural poor and other historically under-served groups.
The issue: Someone who is eligible for stimulus money but isn't in the IRS system still must first file a 2020 federal income tax return to get their stimulus money. It's not something some people normally would need to do.
"While Economic Impact Payments continue to be made automatically to most people, the IRS can't issue a payment to eligible Americans when information about them isn't available in the tax agency's systems," according an IRS alert.
It is possible that people can get stimulus money even if they make very little money or only work part-time. They're not required to have a job. They can get the stimulus money if their income is so small that they usually are not required to file a tax return.
People do not need a permanent address or a bank account to get the stimulus money, either.
“We’re doing all we can to reach those experiencing homelessness," said Luis D. Garcia, an IRS spokesperson in Detroit.
"This money could make a world of difference, as it is intended to, for people with the greatest need.”
You would need a Social Security number and you cannot be supported by someone who can claim you as a dependent.
Filing a 2020 tax return could be even more important in the months ahead, too, as the IRS ramps up efforts to get advance monthly payments of the Child Tax Credit to those who qualify later this year.
"There is nothing those who qualify need to do at this point other than file a 2020 tax return," according to the IRS.
"For eligible individuals, the IRS will still issue the payment even if they haven’t filed a tax return in years," according to an IRS alert.
"The only way for the agency to have that information is for people to file a basic 2020 tax return with the IRS," the IRS said.
"Once that return is processed, the IRS can quickly send stimulus payments to an address selected by the eligible individual."
Many banks and credit unions are offering to help a person find a low-cost or no-cost bank account. Someone who opens an account can use the account and the bank's routing number when they file a tax return and claim a direct deposit of the Economic Impact Payment.
Filing a 2020 income tax return, though, is key to the process.
The IRS notes that homeless people and others in this group can still qualify for the first two Economic Impact Payments when they file their 2020 return by claiming the Recovery Rebate Credit.
There's a special section on IRS.gov: Claiming the 2020 Recovery Rebate Credit if you aren't required to file a tax return.
