Foreigners, students, wealthy families: who will not receive federal assistance in connection with the coronavirus

Federal assistance in connection with the coronavirus, which, according to the head of the US Treasury Department, Stephen Mnuchin, will be credited to the bank accounts of Americans “within three weeks,” will not be given to everyone, writes CBS News.

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This is due to the fact that a huge package of incentive measures in the amount of $ 2,2 trillion excludes certain categories of the US population that will not be able to receive lump sum payments set at $ 1200 for adults and $ 500 for children.

Here's who won't get paid:

• children who are 17 or 18 years old;
• many college students aged 19 to 23 years;
• adults who may be claimed to be dependent;
• non-resident aliens (in other words, those who do not have a green card);
• individuals earning more than $ 99, or couples earning more than $ 000;
• Persons who have not filed tax returns for 2018 and 2019.

What does the definition of “children” mean?

Older children are excluded because the bill uses the definition of "child" from the tax code, which states that "a qualifying child ... is under 17 years of age." In other words, many high school students and their families won't receive the $500 coronavirus relief check.

This may seem unfair to older children, especially if their younger siblings are eligible for payment. But it also raises the question of whether the incentive bill should take a broader approach, given that families with students aged 17 or 18 may have the same costs for these adolescents as, for example, for 14-year-olds.

Adult dependents

The second group of Americans excluded from these payments are adults who are considered dependent on the income of other taxpayers. This category includes many college students who may be adults under the law, but they are still considered dependents on their parents' tax returns.

Some young people and college students expressed their disappointment on social networks that they were refused payments, noting that they also experience difficulties in an economic downturn.

Some adults with disabilities are another group that may be excluded from stimulus payments. That's because the bill doesn't include "adults who can be claimed as dependents," Howard Gleckman of the Tax Policy Center noted in a post about the payments.

On the subject: Federal Coronavirus Aid: A Complete Guide to Questions and Answers

Nonresidents

“Nonresident aliens” is “a tax term that describes non-U.S. citizens who do not have a green card or who cannot reside in the United States for a sufficiently long period of time,” as defined by Gleckman.

Even with incomes of less than $ 75 a year, some groups of immigrants who are required to pay taxes will not receive federal assistance. We are talking about immigrants who do not have a Social Security Number (SSN - Social Security Number). This number may not be available to everyone living in the United States, because some of them do not have the right to work. However, they still have to pay taxes. To do this, they are given another ITIN (Individual Taxpayer Identification Number).

ITIN numbers are illegal immigrants, as well as wives / husbands of US citizens or people with a green card or an American work visa. Also included in this category are students, professors, or researchers with non-resident status in the United States.

In 2015, the 4 million people who had ITIN paid $ 4,35 billion in taxes to the Internal Revenue Service (IRS).

Some Democrats in the House of Representatives of the US Congress criticized this provision, initiated by Republicans.

“Thanks to the Republicans, these checks are not received by immigrants who pay taxes, they do not receive anything. Many of them are employees of important structures, and they pay more taxes than Amazon, ”said congresswoman Alexandria Okasio-Cortes.

High Income Families

High-income households above a certain threshold also do not receive payments, because the bill aims to support low- and middle-income families.

A key factor is annual family income because the package is designed to help low- and middle-income families. Individual taxpayers will receive $ 1200 each if their adjusted gross income is less than $ 75, and families will receive $ 000 if their adjusted gross income is less than $ 2400 (adjusted gross income, for example, for 150 can be found in line 000 of form 2018. For more information go to IRS.gov.)

Those payments would be reduced by $5 for every $100 of income above those levels — and would be reduced to zero for some higher-income households. Individuals earning more than $99 will receive nothing. Married couples earning more than $000 (and not having children as dependents) are also not eligible for payments.

On the subject: Advice from the government: how to get federal aid for coronavirus faster

Those who did not file tax returns for 2018 or 2019

People who have not filed tax returns in 2018 or 2019 may not receive federal payment for coronavirus, although it is not too late to file a tax return for 2019, said Gleckman (if you have not filed a tax return for 2019 The Treasury will use your tax returns for 2018 to calculate the payment).

“Those who did not file a 2018 or 2019 tax return will not be eligible for payment, although they could file Form 1040 now and receive a check,” he wrote. “Those who fail to file may include people who were students, people receiving government assistance or Supplemental Security Income, or even working people whose income fell below the standard deduction amount.”

Important! According to the new IRS requirement, all taxpayers must file a 2019 declaration to receive federal assistance in connection with the coronavirus. This is necessary even for those who had not previously been obliged to submit declarations due to low income or its complete absence.

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