Eligibility for stimulus payments

Question

In 2020 I became a resident for tax purposes via the substantial presence test. I also got married in 2020. My wife is from Canada, moved to the US mid to late 2020, but has not yet passed the substantial presence test and so is a non-resident for tax purposes. Using the Non-resident Spouse Treated as Resident option, we plan to file as "married, filing jointly". Our combined total taxable income for 2020 is < 150,000. I have an SSN but wife doesn't yet as she has F2 status and so is ineligible to work. Upon filing this tax return, we will apply for an ITIN for her.

Given all of this, are we eligible to have received the stimulus payments? We never received any.

Thanks in advance.

Answer 1

Yes, you are eligible for $1800 of Recovery Rebate Credit on your 2020 tax return, since only one of you has an SSN by the tax filing deadline.

The recent stimulus bill added $600 "EIP 2" stimulus money, and provided that for a couple filing jointly where only one person has an SSN, they get the stimulus money of one person (see Division N section 272 of the bill which added 26 USC 6428A). It also retroactively amended the eligibility for the $1200 "EIP 1" stimulus money (which previously provided that for a couple filing jointly, both of them had to have SSNs to get any stimulus money), so that for a couple filing jointly where only one person has an SSN, they also get the stimulus money of one person (see Division N section 273 of the bill which amended 26 USC 6428). So you guys get the $1800 stimulus money for you, and none for your wife who doesn't have an SSN. Since your AGI is less than $150,000, the stimulus money has not phased out.

You can go through through the Recovery Rebate Credit Worksheet in the 2020 form 1040 instructions for line 30 yourself, and see that it comes out with $1800.