CORONAVIRUS RELIEF

[geowrian 22,337]

2 hours ago, Boiler said:

NR = Non resident? Did not think that was possible.

F-1 is treated differently for tax purposes. Namely, the substantial presence test treats their time in F-1 status as exempt for tax residency purposes:

https://www.irs.gov/individuals/international-taxpayers/the-green-card-test-and-the-substantial-presence-test

 

If he filed a 1040NR, then that is why he was not included in the advance rebate. He will file a 1040 in 2020, at which time he will qualify as a tax resident.

Edited April 25, 2020 by geowrian

[Ann&James 179]

14 hours ago, geowrian said:

F-1 is treated differently for tax purposes. Namely, the substantial presence test treats their time in F-1 status as exempt for tax residency purposes:

https://www.irs.gov/individuals/international-taxpayers/the-green-card-test-and-the-substantial-presence-test

 

If he filed a 1040NR, then that is why he was not included in the advance rebate. He will file a 1040 in 2020, at which time he will qualify as a tax resident.

Know someone  who was on a  J1 visa and filed taxes for 2018, and after filing for 2019 she got the stimulus  money  in her bank account because she has direct deposit. She is not even in the US since August  2019. 

[geowrian 22,337]

8 minutes ago, Ann&James said:

Know someone  who was on a  J1 visa and filed taxes for 2018, and after filing for 2019 she got the stimulus  money  in her bank account because she has direct deposit. She is not even in the US since August  2019. 

J-1 is not (edit: generally) excluded:

"Does NOT include students on J or Q visas;"

Ergo they would have filed a 1040, not a 1040NR.

 

Edit: Note that it says students. Other J-1 holders may qualify and therefore be exempt.

No idea how the person you noted filed taxes for 2018 or 2019. That would be the determining factor on if they get the advance rebate or not.

Anyway, in the OP's case, they were clearly exempt as F-1.

Edited April 25, 2020 by geowrian

[Ann&James 179]

1 hour ago, geowrian said:

J-1 is not (edit: generally) excluded:

"Does NOT include students on J or Q visas;"

Ergo they would have filed a 1040, not a 1040NR.

 

Edit: Note that it says students. Other J-1 holders may qualify and therefore be exempt.

No idea how the person you noted filed taxes for 2018 or 2019. That would be the determining factor on if they get the advance rebate or not.

Anyway, in the OP's case, they were clearly exempt as F-1.

Is she entitled to the stimulus even if her J1 expired on August 2019 and she is back in her home country since that time?

[geowrian 22,337]

17 minutes ago, Ann&James said:

Is she entitled to the stimulus even if her J1 expired on August 2019 and she is back in her home country since that time?

If she qualified as a US tax resident for that year, she would get the rebate. This means she either met the substantial presence test (meaning she was not exempt while in status), or elected to be treated as a US tax resident via another a US tax resident spouse.

The possible issue is if she is NOT considered a US tax resident in 2020, then she doesn't actually qualify for the underlying tax credit. I know overpayment of the credit is forgiven, but I'm not sure if being ineligible for it is also forgiven. Sorry...this is beyond my understanding of the CARES tax credit at this time. If not forgiven, she would owe the money back. But again, this assumes she won't be a US tax resident in 2020...if she will be, then there is certainly no issue with the credit.

Edited April 25, 2020 by geowrian

[Ann&James 179]

1 hour ago, geowrian said:

If she qualified as a US tax resident for that year, she would get the rebate. This means she either met the substantial presence test (meaning she was not exempt while in status), or elected to be treated as a US tax resident via another a US tax resident spouse.

The possible issue is if she is NOT considered a US tax resident in 2020, then she doesn't actually qualify for the underlying tax credit. I know overpayment of the credit is forgiven, but I'm not sure if being ineligible for it is also forgiven. Sorry...this is beyond my understanding of the CARES tax credit at this time. If not forgiven, she would owe the money back. But again, this assumes she won't be a US tax resident in 2020...if she will be, then there is certainly no issue with the credit.

Thank you I will relay this post to her.

[HRQX 4,145]

3 hours ago, Ann&James said:

Is she entitled to the stimulus...

Yes per Section 2201.2020 of the CARES Act

[Steeleballz 7,550]

5 hours ago, geowrian said:

If she qualified as a US tax resident for that year, she would get the rebate. This means she either met the substantial presence test (meaning she was not exempt while in status), or elected to be treated as a US tax resident via another a US tax resident spouse.

The possible issue is if she is NOT considered a US tax resident in 2020, then she doesn't actually qualify for the underlying tax credit. I know overpayment of the credit is forgiven, but I'm not sure if being ineligible for it is also forgiven. Sorry...this is beyond my understanding of the CARES tax credit at this time. If not forgiven, she would owe the money back. But again, this assumes she won't be a US tax resident in 2020...if she will be, then there is certainly no issue with the credit.

 

  From what I have read, if the payment is issued to the correct person, based on a correctly filed tax return for either 2018 or 2019, there is no provision for paying it back based on tax status changes in 2020. The only scenario they have listed for pay back is when a payment is issued in error. So if they deposit funds to the wrong person/account, or if they send you two checks, the IRS can get those payments back.

[geowrian 22,337]

1 minute ago, Steeleballz said:

  From what I have read, if the payment is issued to the correct person, based on a correctly filed tax return for either 2018 or 2019, there is no provision for paying it back based on tax status changes in 2020. The only scenario they have listed for pay back is when a payment is issued in error. So if they deposit funds to the wrong person/account, or if they send you two checks, the IRS can get those payments back.

That's what I thought as well, but I cannot feel confident enough after reading the language of the law to say it with a high degree of confidence. As such, better to err on the side of caution IMO.