Pass the Word...Prisoners Eligible to Receive Stimulus Payments

By Melisha Daniels  -  Updated: October, 19, 2020
Includes link to Paper Form
 

As reported on Prisoncase.org the U.S. District Court has ruled that the IRS unlawfully withheld stimulus checks from prisoners. The ruling means that people who are incarcerated and meet all other eligible requirements can now receive the $1,200 payments.

To receive the stimulus payment, incarcerated individuals will need to complete the online update form no later than November 21. If internet access is not available at the institution the paper form should be completed no later than October 30. People who are not able to file the claims will be able to claim the $1,200 as a credit on the next filed return.

The Deceased and The Incarcerated

It may sound like a good reality show, however it is the reality of how the IRS decided to deny prisoners access to the 2020 stimulus check. A May evaluation of stimulus payment disbursements identified 2 groups that were receiving checks in error; dead people and people who are incarcerated.

At some point, the IRS updated it's website 'Frequently Asked Questions' section to answer of 'No' to the question of if prisoners were eligible. The agency then proceeded to try and get the monies back by asking the prisoners to return the money or intercepting the checks. At some point, tax officials considered imposing rules such as determining eligibility based on length of incarceration

As a result of the September 24 ruling, the Frequently Asked Questions portion of the IRS website was updated removing "incarceration" as a disqualifier for receiving the $1,200 payment. Prisoners are now eligible to file a claim for their stimulus payment.

To find out more information contact Lieff, Cabraser, Heimann & Bernstein, Attorney's at Law