Am I Entitled to a Stimulus Check while on Workers Compensation?

COVID-19 2021 Stimulus Checks and Workers’ Compensation. What you need to know.

On March 11, 2021, Joeseph R. Biden signed the American Rescue Plan, which authorized additional Economic Impact Payments (EIP’s), otherwise known as stimulus payments. For those on Workers’ Compensation or applying for workers’ compensation, the question is, “Will I get a stimulus check?“. The answer is yes; through the Cares Act, if you have an open workers’ compensation claim or are currently receiving payments, you are eligible for the 2021 COID-19 relief payments.

Most people who are receiving workers’ compensation are eligible for the $1,400.00 stimulus check. But, unlike prior stimulus packages, this COVID-19 relief check is subject to garnishments by bill collectors.

Do I need to claim Workers’ Compensation and the Stimulus as Taxable?

No, workers’ compensation is not taxed under federal law, and Nevada is a tax-free state. So there is no worry on taxation of workers’ compensation or your 2021 stimulus check.

Who is not eligible for the 2021 Stimulus check?

• High-Earners: For single earners making up to $80,000.00 a year or over and $160,000.00 for married filing jointly.
• Dependants: The dependants will not receive a stimulus check, but claiming them as the dependant will get an extra $1,400.00 per dependant.
• Nonresident Aliens: Those who are here with “nonresident” status will not be eligible for 2021 stimulus relief.
• People Without a Social Security Number: In general, you need to have a social number to get a stimulus check.
• People the IRS doesn’t know about: Typically, if the IRS has no records on file from 2019 or 2020, it may not be easy to get a 2021 stimulus check. But with that said, if you are just starting to work and therefore deserve the check, you’ll be able to claim it as a Recovery Rebate tax credit.

If you are currently struggling under worker’s compensation to make ends meet. The 2021 stimulus check could be the extra boost you need to survive. To check on the status of your payment visit the IRS and use the “Get My Payment” tool on their website.
https://www.irs.gov/coronavirus/get-my-payment

Economic Impact Payments will be based upon your tax returns from 2020 or 2019. Which includes anyone who used the non-filer tool last year or the special simplified tax return.

For more information on how Workers’ Compensation is affected by the 2021 stimulus, give our experienced workers’ compensation attorneys at Shook & Stone a call at (702) 570-0000.