Stimulus Check Eligibility For International Students Explained

The third round of stimulus checks, which were part of the American Rescue Plan passed in March 2021, provided eligible adults with up to $1400, plus an additional $1400 for each dependent. However, since many international students are non-residents for tax purposes in the US, they are not eligible for the payment. This ineligibility also applies to international scholars. Therefore, only US tax residents with a social security number are eligible for the third stimulus check.

International students are non-residents for tax purposes

International students are generally considered non-residents for tax purposes in the United States. This means that they are not eligible for certain benefits that are available to US residents, such as the third round of Economic Impact Payments (EIPs) or stimulus checks.

Foreign students in F-1, J-1, or M-1 nonimmigrant status are typically considered nonresident aliens under the residency rules of IRC section 7701(b). These students are exempt from Social Security Tax and Medicare Tax on wages earned from services performed within the United States. To qualify for this exemption, the services performed must be allowed by USCIS for their specific nonimmigrant status and must align with the purpose for which their visa was issued. On-campus student employment of up to 20 hours per week (40 hours during summer vacations) is permitted, as is off-campus employment authorized by USCIS. Practical training student employment, whether on or off campus, is also allowed. However, the exemption does not extend to spouses and children in F-2, J-2, or M-2 status, nor to employment not authorized by USCIS or closely connected to the visa purpose.

International students on F-1 visas are considered nonresident aliens for tax purposes for the first five calendar years of their stay in the US. After this period, they may become resident aliens for tax purposes if they meet the "Substantial Presence Test" and are liable for Social Security and Medicare taxes. This test takes into account the number of days an individual has been physically present in the United States over a three-year period, and certain individuals, such as those on student visas, are exempt from being counted as physically present.

It is important to note that while international students are generally non-residents for tax purposes, there may be exceptions. For instance, F-1 students can file joint returns with a spouse who is a US citizen or resident, and their filing status would be 'Married Filing Separate'. Additionally, some countries have Totalization Agreements with the United States to avoid double taxation of income with respect to Social Security taxes, and these agreements must be considered when determining an individual's tax liability.

International students need to file an amended tax return

International students in the US on an F-1 visa are considered nonresident aliens for tax purposes for the first five calendar years of their stay. This means that they are taxed only on US-source income. Every international student is required to file their tax return if they were in the US during the previous calendar year and earned income.

If you incorrectly filed a resident tax form instead of a nonresident tax form, you should correct your error by filing an amended tax return. To complete your amended tax return, you will need a Form 1040X, your original tax return, and any new required documents. Once you complete the form, you will have to mail it to the IRS along with all required supporting documents. Amended returns are only filed on paper.

If you are an international student, you may be able to claim a tax refund on your scholarship if it is completely or partially covered by a tax treaty. Most F-1 students are not required to pay FICA tax. You will only be obligated to pay this tax if you were in the US for more than five years. If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, you can contact your employer for a refund.

You can also use tax software to help you prepare your tax return. For example, all U-M/Ann Arbor international students can use Glacier Tax Prep free of charge. This software is designed for international students and will prepare the correct nonresident tax form for you.

The stimulus check is for $1400

The stimulus check, as part of the third round of Economic Impact Payments (EIPs), is for $1400. These funds were the last round of stimulus checks issued during the COVID-19 pandemic. The specific amount of the stimulus check depends on the adjusted gross income (AGI) of the individual or couple receiving the payment. Single filers qualify for the full $1400 if their AGI in 2021 was no more than $75,000, but the credit fully phases out at $80,000. Married couples filing jointly qualify for $2800 if their combined AGI in 2021 was $150,000 or less, but the credit phases out completely at an income of $160,000. Dependents could earn $1400 in 2021, regardless of their age, but the same phase-out limits applied.

The third round of stimulus checks, passed in March 2021 as part of the American Rescue Plan, provided up to $1400 per eligible adult, plus $1400 for each dependent. However, international students are not eligible for the stimulus check as they are considered nonresidents for U.S. tax purposes. Only U.S. tax residents for 2020 were eligible for the payment, and a social security number was also required.

The IRS is sending out payments, but eligible individuals must act before April 15, 2025, to avoid missing out. This is because the IRS allows taxpayers three years from the original filing deadline to submit returns and receive a refund. This means that eligible individuals have until April 15, 2025, to file a 2021 return and claim the Recovery Rebate Credit. If an individual does not file their 2021 return by the April 15 deadline, they will lose the ability to claim the credit.

Dependents can receive an additional $1400

The third round of stimulus checks, part of the American Rescue Plan passed in March 2021, provided payments of up to $1,400 per eligible adult, plus an additional $1,400 for each dependent, regardless of their age. This means that if you had dependents in 2021, you could be eligible for an additional $1,400 per child or qualifying dependent.

The IRS has stated that eligible individuals who did not receive the full amount of their stimulus payments will be issued their payment automatically. However, if you did not receive the third stimulus payment and have not filed your 2021 tax return, you can still claim the Recovery Rebate Credit by filing your 2021 tax return before the deadline of April 15, 2025.

It is important to note that to be eligible for the stimulus payments, individuals must have been U.S. tax residents in 2020 and have a social security number. International students and scholars are often considered nonresidents for U.S. tax purposes and, therefore, may not be eligible for the stimulus payments.

If you believe you may be eligible for the stimulus payments, you can check the status of your payment using the IRS Get My Payment tool.

The deadline to claim the rebate is April 15, 2025

International students are generally not eligible for the third stimulus check, as they are considered nonresidents for U.S. tax purposes. To be eligible for the stimulus check, individuals must be U.S. tax residents and have a social security number.

Now, for those who are eligible for the third stimulus check but have not received it yet, the deadline to claim the rebate is April 15, 2025. This is the last chance to claim the rebate, as the IRS allows taxpayers three years from the original filing deadline to submit returns and receive refunds. This means that eligible individuals have until April 15, 2025, to file a 2021 tax return and claim the Recovery Rebate Credit.

It is important to note that the IRS will not issue a check retroactively if the deadline is missed, and individuals will lose their chance to claim the rebate altogether. The IRS has warned that filing close to the deadline may increase the risk of delays or potential processing issues. Therefore, it is advisable to file tax returns electronically and as early as possible to avoid any issues.

Additionally, eligible individuals should ensure that they have all the necessary information, such as dependent details and accurate income records, to support their claim. They can also check the status of their refund online using the IRS Get My Payment tool.

Frequently asked questions