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US Stimulus [COVID-19]: Are Greencard, H1-B holders, NRIs eligible?
US Senate passed a $2 Billion economic rescue plan to assist americans who were affected by the coronavirus COVID-19 pandemic. Covers eligibility, who gets the stimulus checks and who cannot, what to do to file their IT returns while in India.
Answer: It depends
The answer really depend on many factors such as are you a US Citizen, Green card holder, where do you live and how long ? are you filing taxes in US ? are you receiving Social Security benefits ? Do you own a small business in US but living outside of India ?
This document covers
- What is US stimulus package to offer ?
- Who is eligible for the economic impact payment?
- What about H1b Visa holders and their dependents ?
- U.S. Citizens Not Residing in the United States
- Recommendations
- Small Businesses in USA eligible for COVID-19 Stimulus ?
1. What is US stimulus package to offer ?
US stimulus package announced in April is to help americans who were affected by the Coronavirus COVID-19 pandemic that devastated economy and forced US into a virtual lockdown.
Per US IRS, tax filers with adjusted gross income- Up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment.
- For income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds
- Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible.
- Social Security recipients and railroad retirees who are otherwise not required to file a tax return are also eligible and will not be required to file a return
2. Who is eligible for the economic impact payment?
U.S. Citizens, Permanent residents (GreenCard holders) or qualifying resident aliens (H1b) who:
- Have a valid SSN (Social Security number)
- Could not be claimed as a dependent of another taxpayer, and
- Had adjusted gross income under certain limits (refer above)
3. What about H1b Visa holders and their dependents ?
H1B visa and their dependents and other types of non-immigrant visa owners should be eligible for a stimulus payment (COVID-19 stimulus check) but one must be having an SSN and a TIN (Tax ID) for dependents where applicable.
4. U.S. Citizens Not Residing in the United States
Most US Citizens who live overseas due to work, vacation, active duty, treatment, and filed US Taxes in 2018 or 2019 can receive a COVID-19 US Stimulus payment. The criteria mention above such as possessing an active SSN and the adjusted gross income (AGI) within the income thresholds defined.
Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples and up to $500 for each qualifying child.
5. Recommendations
While it is not mandatory, its recommended to eFile your US return for 2019 for the IRS to send the stimulus payment directly deposited into your US bank account. For those who are living in India some time its hard to file their US taxes due to certain portals restricted access outside of USA.
If you do not have US credit card or debit card accessible, we recommend using HR Block US portal. Please remember per our knowledge, HR Block shutdown their in Indian operations and EZTax.in is helping many taxpayers filed their taxes with HR Block in the past in the area of NRI taxation, advisory services.
- Refer Free tax filing facilities offered through IRS @ Free USA Federal Tax Filing Links (* visit IRS for latest information.)
- If not interested to file your return for some reason, you may choose Non-Filers: Enter Payment Info (* time sensitive may close soon.)
Note : EZTax.in Portal do not have any direct association with HRBlock.com (US Portal), we have referred their portal mainly to help Indian residents and our customers who wish to file their US taxes while in India.
6. Small Businesses in USA eligible for COVID-19 Stimulus ?
Paycheck Protection Program (PPP) part of Stimulus targeted to bring confidence in the Small Businesses. The loan program is for payroll and other expenses through June 30, 2020 (* date may change). Loans may be forgiven if 75% is used for payroll. Other costs covered by the loan include mortgage interest payments, rent, and utilities.
Companies with more than 500 employees are not eligible for the loans. This program was paused due to lack of funds (as on Apr 21st 2020)
* Source: IRS web site @ irs.gov