Below are common FAQs on this subject.
1. Who are eligible?
a) Must be US Residents for Tax Purpose
Generally all individuals other than non-resident taxpayers are eligible for this benefit. It includes US Citizens, Permanent Residents, Resident Alien Taxpayers and Children under 17 years of age who are claimed as dependents.
H1/L1/other non-immigrant visa holders who filed Form 1040 for year 2019 or 2020 are eligible. If they filed Form 1040-NR, they are not eligible for this benefit.
b) Must have valid US Social Security Number
Eligible individuals should have valid SSN (eligible for employment). If any individual on the return does not have SSN, only those with SSN will get stimulus amount. For eg, in a family of 4 if taxpayer and two kids have SSN and spouse has ITIN, such family will receive $4200 ($1400 for each individual with SSN).
2. $1400 for each Individual and eligible dependent
a) Single or Married Filing Separate Tax Payers:
- If your AGI is $75,000 or less, you will get $1400 for self and $1400 for each child under age 17.
- Amount will gradually reduce with AGI exceeding $75,000 and no benefit will be paid if AGI is $80,000 or more.
b) Married Tax Payers
- If your AGI is $150,000 or less, you will get $1400 each for self and spouse and $1400 per child.
- Amount will gradually reduce with AGI exceeding $150,000 and no benefit will be paid if AGI is $160,000 or more.
c) Head of Household Filers
- If your AGI is $112,500 or less, you will get $1400 each for self and $1400 per child.
- Amount will gradually reduce with AGI exceeding $112,500 and no benefit will be paid if AGI is $120,000 or more.
AGI from latest filed and processed return will be considered. It is the amount on line 8b of 2019 tax return or line 11 of your 2020 tax return.
3. Do I have to take any action to get stimulus amount?
IRS will automatically transfer this amount to your bank account (if the same was used for direct deposit of refund in 2019 or 2020 tax return) or mail a check or debit card. No separate application / action needed from your end.
You can check the status of your payment at Get My Payment
4. Is it taxable?
No, this benefit is non-taxable. You do not have to report it in your tax return.
5. Americans living abroad.
American taxpayers living abroad will automatically receive this benefit if they filed 2019 or 2020 tax return.
6. Are International Students eligible?
Most international students on OPT/CPT are considered non-residents for tax purposes and file Form 1040-NR. As per the CARES Act, non-residents are not eligible for this benefit. Students who lived for more than 5 calendar years in US may be eligible as they become US residents for tax purposes.
7. When will I receive the payment?
IRS started sending this money from second week of March 2021.
8. Common Issues
I haven't received this benefit yet: IRS is transferring this amount in phased manner. So all eligible individuals should receive it.
If for some reason if you are unable to receive this payment inspite of being eligible, you will be able to claim the same when you file your 2021 tax returns.
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