Foreigners, students, wealthy families who do not receive Federal assistance in connection with the coronavirus

Federal aid in connection with the coronavirus, which, according to the head of the Treasury Department of the USA Stephen Mnuchin will be credited to the Bank account of the Americans “within three weeks”, will get not all, writes CBS News.

Иностранцы, студенты, состоятельные семьи: кто не получит федеральную помощь в связи с коронавирусом

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This is due to the fact that a huge stimulus package in the amount of $ 2.2 trillion excludes certain categories of the U.S. population who are not able to lump sum payments set at $1200 for adults and $500 for children.

That’s who will not receive payouts:

  • children who are 17 or 18 years of age;
  • many College students aged 19 to 23 years;
  • adults who can be claimed as dependents;
  • non-resident foreigners (in other words, those who do not have a green card);
  • individuals earning more than $99, 000 or couples earning more than $198 000;
  • persons who have not filed a tax return for 2018 and 2019.

What is the definition of “children”?

The older children are excluded from the list because the bill uses the definition of “child” of the tax code, which States that “compliant child… has not reached the age of 17”. In other words, many seniors and their families will not receive a check for $500 within the framework of assistance in connection with the coronavirus.

It may seem unfair to the older children, especially if their younger brothers and sisters are entitled to the payment. But it also raises the question of whether a bill on incentives to take a broader approach, given that families with students aged 17 or 18 can have the same costs for these teenagers, like 14-year-old.

Adult dependants

The second group of Americans is excluded from these payments is adults who are considered dependents on the income of other taxpayers. This category includes many College students which can be older in accordance with the law, but they are still considered dependents in the tax returns of their parents.

Some young people and College students expressed their disappointment on social networks about the fact that they refused to pay, noting that they also have difficulties in economic downturn.

Some adults with disabilities are another group that may be excluded from incentive payments. This is due to the fact that the bill does not “adults who can be claimed as dependents,” said Howard Gleckman from the Centre for tax policy in your post about the benefits.

Non-residents

“Non-resident foreigners” is “a tax term that describes the U.S. non-citizens who do not have a green card or who are unable to live in the US for quite a long period of time,” according to the definition of Glickman.

Even in terms of income is less than $75,000 per year some groups of immigrants are obliged to pay taxes, will not receive Federal aid. We are talking about immigrants that do not have a social security number (SSN — Social Security Number). This room can not get it living in the US, because some of them do not have the right to work. However, they still have to pay taxes. To do this they have another ITIN (Individual Taxpayer Identification Number, individual identification number of taxpayer).

An ITIN are illegal immigrants, and the wives/husbands of U.S. citizens or people with green card or us work visa. Also, this category includes students, professors or researchers having the status of non-US.

In 2015, 4 million people who had the ITIN, pay the IRS U.S. Internal Revenue Service (IRS) taxes at $4.35 billion

Some Democrats in the House of representatives of the U.S. Congress have criticized the provision, initiated by the Republicans.

“Thanks to the Republicans, these checks do not get immigrants who pay taxes, they get nothing. Many of these workers are important structures, and they pay more tax than Amazon,” said Congresswoman of Alexandria Ocasio-Cortez.

Families with high income

Households with high income that exceeds a certain threshold, will also not receive payments because the bill aims to support families with low and middle income.

The key factor is annual household income, because the package is designed to help low and middle income. Individual taxpayers will receive $1200 each, if their adjusted gross income is less than $75 000 and families will receive $2400 if their adjusted gross income is less than $150 000 (adjusted gross income, for example, for 2018 can be found in line 7 of form 1040. For more information go to IRS.gov.)

These payments will be reduced by $5 for every $100 of income above these levels will be reduced to zero for some households with higher incomes. Individuals who earn more than $99 000 will receive nothing. Married couples earning more than $198 000 (and not having children as dependents) are also eligible for payments.

Those who have not filed tax return for the 2018 or 2019

People who have not filed the tax return either in 2018 or in 2019, may not receive Federal payment in connection with the coronavirus, although it is not too late to file a Declaration in 2019, said Glickman (if you haven’t filed your tax return for the year 2019, Treasury will use your tax return for 2018 to calculate the payment).

“Those who have not filed a tax return in 2018 or 2019, will not be eligible for payment, though they could now file a form 1040 and to check, — he wrote. — The number of persons who have not filed the Declaration can include people who were students, people receiving public assistance or supplemental income to ensure safety, or even working people whose income fell below the standard deduction amount”.

Important! The new requirement of the IRS to obtain Federal assistance in connection with the coronavirus all taxpayers must submit a Declaration for 2019. It must be done even to those who have never been obliged to submit declarations in connection with a low income, or its complete absence.

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