interesting economic stimulus situation

[jeshamesh 0]

so I filed early with direct deposit hoping for an early stimulus payment. However, after investigating more i discovered that, despite the fact that my wife and I both had valid social security numbers on my tax return, she does no meet the substantial presence test (short by 50 days or so) for 2007 and that apparently is the IRS definition for resident status or not. However, much of everything else I've read says the payment is strictly based on whether a valid social security number was indicated on the return.

Complicating this further is two issues:

1. I have heard that an "unrestricted" SSN is what is really required even though this isn't indicated on the IRS website anywhere. This would be a SS card that doesn't state "valid for work only with USCIS authorization" I presume...not sure about this.

2. My wife now has her green card (card production ordered April 8th, 2008!) so was definitely a permanent resident prior to the tax filing deadline anyhow...wonder how this effects the situation. Only problem is that she is in europe right now so can't rush over to the social security office to remove the conditions on her card and my SSN falls in the first group of direct deposit recipients (3 days from now at the latest).

I'll keep you informed if a payment shows up. Otherwise that new macbook will have to wait until 09! : )

[GaryC 7]

From the FAQ on the IRS web site:

Q: I know some people won’t get a stimulus payment. How do I know if I’m one of them?

A: You won’t get a stimulus payment in 2008, if any of the following apply to you:

You don’t file a 2007 tax return.

Your net income tax liability is zero and your qualifying income is less than $3,000. To determine your qualifying income, add together your wages, net self-employment income, nontaxable combat pay, Social Security benefits, certain Railroad Retirement benefits and certain veterans’ payments.

You can be claimed as a dependent on someone else’s return (whether or not you actually are claimed as a dependent on someone else's return). For example, this would include a child or student who can be claimed on a parent’s return. [updated 4/15/08]

You do not have a valid Social Security Number.

You are a nonresident alien.

You file Form 1040NR or Form 1040NR-EZ, Form 1040PR or Form 1040SS for 2007.

http://www.irs.gov/newsroom/article/0,,id=179181,00.html

[Heracles 417]

I would think your wife would have to have been a permanent resident in 2007. So technically they should not have even been included in your tax return as they only became a resident as of April this year. I could be wrong though..

Edited April 30, 2008 by Boo-Yah!

[jeshamesh 0]

yeah I think maybe I've made a mistake (which could potentially work in my favor) since from the "non-resident alien" definition there it seems that you would have filed a 1040NR or Form 1040NR-EZ, Form 1040PR or Form 1040SS proving your non resident status. I just included my wife on my 1040-EZ and found out about the substantial presence thing later.

I guess I'll wait and see. If the payment shows up now and technically wasn't supposed to I guess it wouldn't even matter since I would be eligible to recoup it on the 09 tax return regardless....it will just be a kinda cool situation where uncle sam give me an interest free loan for a while instead of the other way around (for once).

[Heracles 417]

I think both of you will get the stimulus package. I doubt they will check every single SSN to ensure it does not have conditions..

Edited April 30, 2008 by Boo-Yah!

[jeshamesh 0]

What I've heard from an accountant friend is that what really counts is the current immigration status at the time of filing. So I'm pretty confident in that advice, but when I filed my wife wasn't a resident, but did have a valid SSN so I just filled that in and filed as early as possible.

[Dan J 277]

yeah I think maybe I've made a mistake (which could potentially work in my favor) since from the "non-resident alien" definition there it seems that you would have filed a 1040NR or Form 1040NR-EZ, Form 1040PR or Form 1040SS proving your non resident status. I just included my wife on my 1040-EZ and found out about the substantial presence thing later.

I guess I'll wait and see. If the payment shows up now and technically wasn't supposed to I guess it wouldn't even matter since I would be eligible to recoup it on the 09 tax return regardless....it will just be a kinda cool situation where uncle sam give me an interest free loan for a while instead of the other way around (for once).

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

You can claim your spouse as a resident for tax purposes. Its easy to do if your spouse has no income, but if they do, it can get more complicated.

[Mrs. BB 0]

Well I know we're not getting one as my husband has an ITIN and not a SSN on our tax return.

I read something on the IRS website about claiming it on 2008's tax return if you were ineligible for it this time, but I have no idea how that would work or if it will apply to us.

Seems a bit unfair to me. Non resident immigrants can spend money just as well as resident immigrants.

[Randall Emery 0]

more information at:

http://reformtherebate.com

[Niels Bohr 72]

I think both of you will get the stimulus package. I doubt they will check every single SSN to ensure it does not have conditions..

They are using computers to generate the rebates. Maybe, you're right. But, I think I will disagree on this one.

[mawilson 2,133]

I think both of you will get the stimulus package. I doubt they will check every single SSN to ensure it does not have conditions..

They are using computers to generate the rebates. Maybe, you're right. But, I think I will disagree on this one.

IRS doesn't even have access to that information.

Employment restrictions are irrelevant when you file taxes.