Stimulus payment will NOT be taxable income! It's all yours to keep!

[simple_male 1]

Very good. This calculator is exactly what was causing some confusion with some folks here. It should be noted that it was for those that are still waiting their AOS to be adjusted. They may not be considered residents YET

If they live in the US, they are considered residents for tax purposes.

Residence for tax purposes has nothing to do with AOS or "permanent residence" (i.e. "green card").

I am like you not sure how IRS verifies resident status using one's SSN.

They don't - it's irrelevant.

Good to know. I hope, that is the case. My wife has GC and valid SSN, so it is not an issue for us. But, it was confusing for some members here, because of the fact many non-permanent residents (AOS applicants, students, etc) do have valid SSN's.

[HAL 9000 96]

Exactly so folks.

[mawilson 2,133]

Good to know. I hope, that is the case. My wife has GC and valid SSN, so it is not an issue for us. But, it was confusing for some members here, because of the fact many non-permanent residents (AOS applicants, students, etc) do have valid SSN's.

In theory, they are all eligible for the rebate.

[HAL 9000 96]

Therein lies the crux of the name game. Are AOS applicants, on, say a K-1, considered residents? Yes, to the IRS, they are.

[simple_male 1]

Therein lies the crux of the name game. Are AOS applicants, on, say a K-1, considered residents? Yes, to the IRS, they are.

Nonresident Spouse Treated as a Resident

If, at the end of your tax year, you are married and one spouse is a U.S. citizen or a resident alien and the other spouse is a nonresident alien, you can choose to treat the nonresident spouse as a U.S. resident. This includes situations in which one spouse is a nonresident alien at the beginning of the tax year, but a resident alien at the end of the year, and the other spouse is a nonresident alien at the end of the year.

If you make this choice, you and your spouse are treated as residents for your entire tax year for the purpose of your federal individual income tax return, and for the purpose of withholding U.S. federal income tax from your wages. However, for the purpose of Chapter 3 withholding you may still be treated as a nonresident alien. Refer to Withholding of Tax on Nonresident Aliens and Foreign Corporations (Chapter 3 of the IRC) in Tax Withholding Types. In addition, you may still be treated as a nonresident alien for the purpose of withholding Social Security and Medicare tax. Refer to Aliens Employed in the U.S. – Social Security Taxes.

Generally, neither you nor your spouse can claim tax treaty benefits as a resident of a foreign country for a tax year for which the choice is in effect and you are both taxed on worldwide income. However, the exception to the saving clause of a particular tax treaty might allow a resident alien to claim a tax treaty benefit on certain specified income. You must file a joint income tax return for the year you make the choice, but you and your spouse can file joint or separate returns in later years.

CAUTION! If you file a joint return under this provision, the special instructions and restrictions for dual-status taxpayers do not apply to you.

How to Make the Choice

Attach a statement, signed by both spouses, to your joint return for the first tax year for which the choice applies. It should contain the following information:

A declaration that one spouse was a nonresident alien and the other spouse a U.S. citizen or resident alien on the last day of your tax year, and that you choose to be treated as U.S. residents for the entire tax year

The name, address, and identification number of each spouse. (If one spouse died, include the name and address of the person making the choice for the deceased spouse.)

Amended Return

You generally make this choice when you file your joint return. However, you can also make the choice by filing a joint amended return on Form 1040X, Amended U.S. Individual Income Tax Return (PDF).

The choice to be treated as a resident alien does not apply to any tax year (after the tax year you made the choice) if neither spouse is a U.S. citizen or resident alien at any time during the tax year.

References/Related Topics

Suspending or Ending the Choice

Taxation of Dual-Status Aliens

http://www.irs.gov/businesses/small/intern...d=96370,00.html

[lucyrich 20]

Therein lies the crux of the name game. Are AOS applicants, on, say a K-1, considered residents? Yes, to the IRS, they are.

It doesn't matter whether they're considered residents to the IRS. The IRS considers illegal immigrants to be residents, at least in the sense that they file a resident return and not a 1040NR. It allows them to file returns using an ITIN.

The IRS doesn't have the means or authority to verify everyone's immigration status. They use the ITIN versus SSN as an imperfect surrogate.

Congress decided that they didn't want any part of the economic stimulus to illegal aliens. So they made the stimulus unavailable to those who file with an ITIN. Yes, they knew this would mean some legal aliens would also be ineligible, but that's the compromise they came up with. In their infinite wisdom, they decided it was better to deny the stimulus to a few legal aliens than to allow illegals to get it.

[simple_male 1]

Therein lies the crux of the name game. Are AOS applicants, on, say a K-1, considered residents? Yes, to the IRS, they are.

It doesn't matter whether they're considered residents to the IRS. The IRS considers illegal immigrants to be residents, at least in the sense that they file a resident return and not a 1040NR. It allows them to file returns using an ITIN.

The IRS doesn't have the means or authority to verify everyone's immigration status. They use the ITIN versus SSN as an imperfect surrogate.

Congress decided that they didn't want any part of the economic stimulus to illegal aliens. So they made the stimulus unavailable to those who file with an ITIN. Yes, they knew this would mean some legal aliens would also be ineligible, but that's the compromise they came up with. In their infinite wisdom, they decided it was better to deny the stimulus to a few legal aliens than to allow illegals to get it.

Yes, I have just read on IRS website that even an illegal alien can be considered as a resident for the purpose of tax filing. I did not know that.

Edited March 24, 2008 by simple_male

[Donna A 4]

for crying out loud...the calculator is not accepting my figures. it keeps telling me to enter a whole dollar amount. i am entering a whole dollar amount. anyway im sure we will probably get nothing.

[Marilyn. 340]

no commas or decibel points...

[HAL 9000 96]

Therein lies the crux of the name game. Are AOS applicants, on, say a K-1, considered residents? Yes, to the IRS, they are.

It doesn't matter whether they're considered residents to the IRS. The IRS considers illegal immigrants to be residents, at least in the sense that they file a resident return and not a 1040NR. It allows them to file returns using an ITIN.

The IRS doesn't have the means or authority to verify everyone's immigration status. They use the ITIN versus SSN as an imperfect surrogate.

Congress decided that they didn't want any part of the economic stimulus to illegal aliens. So they made the stimulus unavailable to those who file with an ITIN. Yes, they knew this would mean some legal aliens would also be ineligible, but that's the compromise they came up with. In their infinite wisdom, they decided it was better to deny the stimulus to a few legal aliens than to allow illegals to get it.

Value statements as to Congress' infinite wisdom aside...

Its not about penalizing the legal resident vs an illegal. Its about penalizing a joint tax return as a basis for not cutting a stimulus check. And even that is inaccurate as we clearly defined that being legal, with an SSN, the stimulus check applies. So no issue for those that were confused by the language on the IRS calculator and were in the situation described previously.

[Craneman 2]

REBATE I don´t get no stinking REBATE.

This sucks, I paid more taxes last year than the total I made the fist 15 years I worked and I don´t get no stinking rebate.

This sucks.

[Marilyn. 340]

looks like we will only be getting $600... I guess I misunderstood.. I thought couples who filed jointly would get $1200 but that is only if you make over a certain amount of money...

[Craneman 2]

All income, legal or illegal, you must pay income tax on the proceeds from drug sales, protitution, even robbing a bank has tax liabilities.

Therein lies the crux of the name game. Are AOS applicants, on, say a K-1, considered residents? Yes, to the IRS, they are.

It doesn't matter whether they're considered residents to the IRS. The IRS considers illegal immigrants to be residents, at least in the sense that they file a resident return and not a 1040NR. It allows them to file returns using an ITIN.

The IRS doesn't have the means or authority to verify everyone's immigration status. They use the ITIN versus SSN as an imperfect surrogate.

Congress decided that they didn't want any part of the economic stimulus to illegal aliens. So they made the stimulus unavailable to those who file with an ITIN. Yes, they knew this would mean some legal aliens would also be ineligible, but that's the compromise they came up with. In their infinite wisdom, they decided it was better to deny the stimulus to a few legal aliens than to allow illegals to get it.

Al Capone 101

All income, legal or illegal, you must pay income tax on the proceeds from drug sales, protitution, even robbing a bank has tax liabilities.

Therein lies the crux of the name game. Are AOS applicants, on, say a K-1, considered residents? Yes, to the IRS, they are.

It doesn't matter whether they're considered residents to the IRS. The IRS considers illegal immigrants to be residents, at least in the sense that they file a resident return and not a 1040NR. It allows them to file returns using an ITIN.

The IRS doesn't have the means or authority to verify everyone's immigration status. They use the ITIN versus SSN as an imperfect surrogate.

Congress decided that they didn't want any part of the economic stimulus to illegal aliens. So they made the stimulus unavailable to those who file with an ITIN. Yes, they knew this would mean some legal aliens would also be ineligible, but that's the compromise they came up with. In their infinite wisdom, they decided it was better to deny the stimulus to a few legal aliens than to allow illegals to get it.

[eau_xplain 2]

I would think so, they are just returning $$ that they took from you in taxes.

Not really. A rebate is a "return on an original payment". There are people who did not have to pay taxes but will still qualify for this payment. Which is why I think some of the provisions of this law are a bit off.

For example, my sister in California has two kids under 17. She went to the IRS website and used their rebate calculator and found out her total rebate will be a whopping $50 Somebody who has earned at least $3000 and does not have to pay taxes, gets a check higher than my sister who probably has paid in a lot of taxes.

So, I think that the IRS is right in calling these as "economic stimulus" payments and not rebate.

[one...two...tree 2,762]

When are the rebate checks going to start coming in the mail?