41 year old Kate Chavez is physically disabled and receives Social Security Disability (“SSD”). In many cases, individuals who receive SSD are not required to file an income tax return. The amount they receive determines whether they have to file.
The amount of Kate’s SSD fell under the reporting threshold, and it wasn’t necessary for her to file. When she learned about the Covid-19 Economic Impact Payments (“EIP”) that were to be sent to all Americans, she knew she needed to submit her information into the IRS’ Non-Filer System.
To her dismay, she was informed she was ineligible for these payments because they had already been made. Kate learned her cousin had claimed her and her daughter as dependents on his tax return, and had gotten the first EIP of $1700. He did not give her the money, as he had already spent it.
Kate sought the help of Lone Star Legal Aid, and Director of Litigation, Brenda Willett, took her case. Willett filed 2019 and 2020 tax returns for Kate, and she has now received the 3 Economic Impact Payments and Advanced Child Tax Credit Payments she was entitled to. Kate saved the money for a down payment on a new mobile home for her and her daughter.
*Names were changed to protect the identity of the client(s).