Lana Oconnell
International students in the US have faced uncertainty regarding their eligibility for stimulus checks during the COVID-19 pandemic. While they were initially deemed ineligible for the first two rounds of disbursement, there is some indication that they may have been eligible for the third round of stimulus checks. This is based on the fact that US expats living abroad were eligible for the first two stimulus checks and the third check of $1400 under Joe Biden's American Rescue Plan. Additionally, adult dependents, including college students, were eligible for the third stimulus payment, which could be claimed by a family member. However, it is important to note that non-resident aliens who received a stimulus check were required to return the money to the Internal Revenue Service (IRS), as non-residents were not eligible to keep or receive such payments.
| Characteristics | Values |
|---|---|
| Are international students eligible for the third stimulus check? | No, non-residents are not eligible to keep/receive the third stimulus payment. However, US expats living abroad were eligible for the first two stimulus checks and will be for a third direct payment of $1400 under Joe Biden's American Rescue Plan. |
| Who is eligible for the third stimulus check? | US citizens and non-US citizens with a Social Security Number who live and work in America. US citizens living abroad and residents of US territories (Puerto Rico, the US Virgin Islands, American Samoa, the Commonwealth of the Northern Mariana Islands or Guam) are also eligible. |
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What You'll Learn
International students on an F-1 visa
However, there may be certain exceptions. For instance, if an international student on an F-1 visa has become a resident alien, they may be eligible for certain exemptions and could potentially qualify for stimulus payments. It is important to note that this depends on various factors, including the student's income and whether they are claimed as a dependent by a family member.
In some cases, international students on an F-1 visa may have inadvertently received stimulus checks. According to the Internal Revenue Service (IRS), nonresident aliens who received a stimulus check are required to return the money. However, there is a possibility that policy changes could occur, as seen in the case of the Higher Education Emergency Relief Fund (HEERF), where international students were eligible to receive funds during the third round of disbursements.
It is always recommended that international students on an F-1 visa consult with appropriate authorities or seek professional advice to understand their specific situation and eligibility regarding stimulus checks.
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Non-resident aliens and stimulus checks
International students on an F1 visa are generally considered non-resident aliens for tax purposes. Non-resident aliens are not eligible for stimulus checks, according to the IRS. However, there are some exceptions, such as for H1-B visa holders, their dependents, and other non-immigrant visa holders in the U.S., who are eligible to receive stimulus checks under the CARES Act package.
If a non-resident alien mistakenly receives a stimulus check, the money should be returned to the IRS. To do this, one must write "Void" in the endorsement section on the back of the check and include a brief explanation for returning the check. This can be done by mentioning that the check was received in error because the recipient is a non-resident alien. It is important to not staple, bend, or paper clip the check.
It is worth noting that there is a possibility that policies could change, allowing non-resident aliens to receive stimulus checks. This has happened in the past with the Higher Education Emergency Relief Fund (HEERF), where international students were eligible to receive funds during the third round of disbursement after being initially ineligible in the first two rounds.
In terms of tax liability, international students employed by their school, college, or university while enrolled at least half-time are exempt from Social Security and Medicare taxes under Section 3121(b)(10) of the Internal Revenue Code. However, off-campus jobs or working for other employers do not qualify for this exemption.
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US expats living abroad
International students are generally not eligible for the third stimulus check, as non-resident aliens are not eligible to receive or keep the payment. However, there may be exceptions, as there have been policy changes in the past that allowed international students to receive funds during the third round of disbursement for the Higher Education Emergency Relief Fund (HEERF).
Now, for US expats living abroad, the situation is different. US citizens living outside the country are eligible to receive stimulus checks, including the third stimulus check, as long as they meet certain requirements and criteria. The American Rescue Plan Act, signed into law by President Biden in March 2021, provides stimulus payments of up to $1,400 per person for Americans living in the US and abroad. This amount can be higher for married couples and those with dependents.
To receive the third stimulus check, US expats must have filed a tax return for either the 2019 or 2020 tax year, and eligibility is based on income reported in that tax return. The easiest way to receive the payment is through direct deposit, and expats can use the IRS's Get My Payment tool to set this up. However, some expats have reported difficulties in adding foreign addresses to this system. Alternatively, expats can use an online bank account or authorize a trusted person to deposit their checks.
It is important to note that US expats who have not received any of the three stimulus checks can expect to receive them as a tax refund once they submit their 2020 tax return. They can also claim the Foreign Earned Income Exclusion to decrease their Adjusted Gross Income (AGI) by up to $107,600 per eligible taxpayer. Additionally, US citizens residing in US territories, such as Puerto Rico or Guam, are also entitled to receive the third stimulus payment.
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US citizens living in US territories
If you are a US citizen living in a US territory, your first two checks were likely either direct deposited into your US bank account (the IRS cannot deposit money into foreign bank accounts) or mailed to the address the IRS has on file for you, based on your tax return or from your Social Security retirement or other federal benefits program.
If you are a beneficiary of the SSI or SSDI program and have a foreign address, you will likely receive your third payment by check in the mail, as the IRS will not deposit payments into foreign accounts.
If you are a US citizen living in a US territory or in a freely associated state, you are eligible for the incentive payments. However, to claim the payment, you must contact your local tax authorities. If you are a citizen or resident of the Freely Associated States, you may not be entitled to a payment. However, if you are a resident of a US territory for the tax year 2020 for US territory income tax purposes, you may be eligible for a payment through the US territory tax agency.
The third stimulus payment, which maxes out at $1,400, also features expanded dependent benefits but stricter income limits. The amount of money you'd be allotted in a potential third stimulus check will likely depend on your AGI, or adjusted gross income, from your tax filings, along with your filing status (single versus joint) and how many dependents you have.
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US citizens living in Freely Associated States
If you are a US citizen or resident for federal income tax purposes but live in one of the Freely Associated States, you may be eligible for a payment from the IRS. People who live in US territories were eligible for a first stimulus check under the CARES Act. If you are a US citizen living abroad or a citizen of a US territory and didn't file taxes for 2018 or 2019 but are eligible for a stimulus check under the CARES Act, you can claim that money now in the form of a Recovery Rebate Credit on your tax return from the IRS. Even if you don't usually have to file taxes, you'll need to this year to claim that money. This credit would either increase the amount of your tax refund or lower the amount of tax you need to pay by the amount of stimulus money the government owes you on the first and second payments.
If you are a citizen or a resident of the Freely Associated States -- the Federated States of Micronesia, the Republic of the Marshall Islands, or the Republic of Palau -- you may not be entitled to a payment. However, if you are a resident of a US territory for the tax year 2020 for US territory income tax purposes, you may be eligible for a payment through the US territory tax agency.
The third stimulus check's expanded eligibility rules mean a lot of Americans who didn't qualify for the first two payments will be receiving stimulus money this time. This includes non-US citizens who live and work in the United States, US citizens who live abroad, and residents of US territories. However, non-resident aliens are not eligible to receive stimulus checks and must return the money to the IRS if they receive it. International students were initially ineligible to receive funds for the first two rounds of disbursement but were eligible to receive them during the third round.
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Frequently asked questions
Nonresident aliens are not eligible to receive the third stimulus check. However, non-US citizens with a Social Security number who live and work in America are eligible. US expats living abroad are also eligible for the third stimulus check.
If you received a stimulus check by mistake, you must return the money to the Internal Revenue Service (IRS).
The third stimulus check provides a payment of up to $1,400 for eligible individuals or $2,800 for married couples filing jointly, plus $1,400 for each qualifying dependent, including adult dependents.
