THE following groups won’t get stimulus payments:
• Children who are 17 or 18 years old (those claimed as dependents by another).
• Many college students between the ages of 19 to 23.
• Adults who can be claimed as dependents (example: your parents).
• Nonresident aliens (example: those without green cards).
• Individuals who earn more than $99,000 and married couples earning more than $198,000.
• People who haven’t filed 2018 and 2019 tax returns (but seniors receiving SS benefits are OK).
The Coronavirus Aid, Relief and Economic Security Act (CARES) relies on the tax-code definition of “child” that describes a qualifying child as somebody who has not attained age 17. Unfortunately, this definition excludes many high school juniors and seniors. In other words, their parents and the students won’t receive a $500 check from the stimulus bill.
If you file taxes on your own, independently, you qualify for a stimulus check. If you are claimed as a dependent on someone else’s tax return (such as your parents), you won’t qualify for a stimulus check. Simply said, you won’t qualify if you are claimed as a dependent of another. This is sad since college students probably need stimulus the most.
Adults claimed as dependents on other taxpayers’ return aren’t entitled to stimulus payments. Sadly, the new law excludes many college students and some disabled adults. The new law also excludes adults who can be claimed (even if not actually claimed) as dependents.
“Nonresident aliens” (non-U.S. citizens) who have no green card or who fail to reside in the U.S. for a long enough period of time” are not entitled to stimulus payments (though I’m not yet sure how long that time is).
No tax return for 2018 or 2019
The Department of Treasury will base stimulus payments on your 2019 tax returns. If you have not filed 2019, IRS will base it on your 2018 return. If you have not filed either, you may not receive the stimulus check. However, if you are a senior receiving Social Security benefits, the government will use your data from the Social Security Administration. You don’t have to file your income tax returns.
Please read upcoming updates. There’s still confusion over stimulus checks. More news releases are coming still out of the woodwork.
* * *
Victor Santos Sy graduated Cum Laude from UE with a BBA and from Indiana State University with an MBA. Vic worked with SyCip, Gorres, Velayo (SGV – Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation in Pasadena, California.
* * *
He has 50 years of experience in defending taxpayers audited by the IRS, FTB, EDD, BOE and other governmental agencies. He is publishing a book on his expertise – “HOW TO AVOID OR SURVIVE IRS AUDITS.” Our readers may inquire about the book or email tax questions at firstname.lastname@example.org.