ITIN and IRS stimulus package

[hebron]

Hi,
I undertand that people who file joint tax return and if one of the family members do not have a SSN, then they are not eligible for the stimulus package pay check.

Question - My wife got SSN recently but I had filed my tax returns earlier. Does anyone know If I can inform IRS about the SSN and be eligible for the stimulus package pay check. $1000+ is too much to lose :)


Thanks!

[sumar]

See the text and link below:

Not eligible at the current time? If your circumstances change and you become eligible after you file your 2007 federal tax return, you can always file an amended return using Form 1040X. File the form after April 14, 2008, and allow 8-12 weeks of processing time before making any inquiries about your payment. See a sample with instructions.

http://www.irs.gov/newsroom/article/0,,id=179211,00.html

[gconmymind]

Hi,
I undertand that people who file joint tax return and if one of the family members do not have a SSN, then they are not eligible for the stimulus package pay check.

Question - My wife got SSN recently but I had filed my tax returns earlier. Does anyone know If I can inform IRS about the SSN and be eligible for the stimulus package pay check. $1000+ is too much to lose :)


Thanks!

Yes, inform the IRS (I think by filing amended return) and you will get the rebate.

[satyapalg]

Not eligible at the current time? If your circumstances change and you become eligible after you file your 2007 federal tax return, you can always file an amended return using Form 1040X. File the form after April 14, 2008, and allow 8-12 weeks of processing time before making any inquiries about your payment. See a sample with instructions. http://www.irs.gov/pub/newsroom/stimulus_payment_1040x_6_.pdf

If you're not eligible this year but you become eligible next year, you can claim the economic stimulus payment next year on your 2008 tax return.
http://www.irs.gov/newsroom/article/0,,id=179211,00.html

[stldude]

I'm in the same boat. I filed my taxes and my wifel got the ssn a few days later. Didn't realize that the tax rebate will be Zero for a ITIN filer. I'm going to send in a 1040x addendum to update my wife's SSN. Let me know ifyou hear anything on that..

[Ramba]

Even if you and your spouse have SSN, and kids have ITIN you may not get full benefit. Foreign born kids also need SSN, if they are in AOS.

Here is Q&A

Q. If I have a valid Social Security Number and my child has an ITIN, do I get extra money for the child?

A. No. To qualify for the extra credit for qualifying children, not only do the taxpayer and spouse, if filing jointly, need valid Social Security Numbers, but the qualifying child must also have a valid Social Security Number.

[prem_goel]

It seems finally IRS opened its ears to this concern. Here are the most recent FAQs on the stimulus package published by IRS today 04/14

Q. If I have a spouse with an ITIN and therefore choose "married filing separately" status to qualify for the Economic Stimulus Payment and later on amend my original return to "married filing jointly" status, will I need to return the stimulus payment?

A. No. [New 4/14/08]



Q. If I currently have an ITIN and file my return but later this year get an SSN, can I amend my return to get the payment or will I need to wait until I file my 2008 return to claim it?

A. You will need to wait until you file your 2008 income tax return to claim the economic stimulus payment. [New 4/14/08


Cheers!!!

[gcisadawg]

Stimulus payment is nothing but a prepayment of your tax credits for 2008. You have two options.

1> Either file a 1040X with the dependent's SSN
or
2> Take the credit when you file 2008 tax return during 2009.

Suze Orman would disagree with option 2 since that $600 is not earning interest
for one year! :)

[hemya]

It seems finally IRS opened its ears to this concern. Here are the most recent FAQs on the stimulus package published by IRS today 04/14

Q. If I have a spouse with an ITIN and therefore choose "married filing separately" status to qualify for the Economic Stimulus Payment and later on amend my original return to "married filing jointly" status, will I need to return the stimulus payment?

A. No. [New 4/14/08]



Q. If I currently have an ITIN and file my return but later this year get an SSN, can I amend my return to get the payment or will I need to wait until I file my 2008 return to claim it?

A. You will need to wait until you file your 2008 income tax return to claim the economic stimulus payment. [New 4/14/08


Cheers!!!

Based on the above FAQ's (http://www.irs.gov/newsroom/article/0,,id=179181,00.html), it seems like there is no use filing a 1040X. My wife got her SSN after filing taxes. I guess we will have to wait till next year.

[mita]

Based on the above FAQ's (http://www.irs.gov/newsroom/article/0,,id=179181,00.html), it seems like there is no use filing a 1040X. My wife got her SSN after filing taxes. I guess we will have to wait till next year.

I am confused....It says, If you get a SSN later this year than don't need to file 1040X, "You will need to wait until you file your 2008 income tax return to claim the economic stimulus payment". In some posts, it is also mentioned that you can file 1040X after April 14th.
Well, this is how I read it, I may be wrong.
To add spouse's SSN you can do that anytime, even before April 14th.
After April 14th is for those who want to claim extra benefits such as veterans, social security etc. but have already filed 2007 return.
To claim for stimulus payment, you must have SSN for yourself and spouse and if amended before May you'll get the payment on 2nd or 9th or 16th if not than call 8-12 weeks later for status. They may send out the payments before July if amended by than else wait for next year as the checks are sent out between May and July only.

[prem_goel]

Here is one more example of the efficiency of a government department in successfully creating a chaotic situation:

By posting this FAQ on the penultimate date of filing taxes/extension:
Q. If I have a spouse with an ITIN and therefore choose "married filing separately" status to qualify for the Economic Stimulus Payment and later on amend my original return to "married filing jointly" status, will I need to return the stimulus payment?

A. No. [New 4/14/08]

Now first I have to file separately and then I have to file jointly. So first I have to pay taxes to IRS by filing separately, and then when I get my stimulus rebate, I have to again file-this time jointly- to get that money back.

Now here's the fun part: Just today I filed for an extension for me and my wife as married filing jointly. When I spoke to my CPA on this FAQ above, he advises me that I should have filed extension for me AND my wife as married filing separately just to be safe. This would have meant that I should have re-estimated my taxes for Married filing separately, and since that would come in the negative, I should send the check for the taxes estimated to be paid to IRS, and then later repeat the entire exercise again, so that I can get $300 back as stimulus rebate. In this whole process, I probably would spend $400 on my CPA for filing tax returns twice.

Go IRS go...you rock again! USCIS did it in July 2007, you do it in April 2008!

[rajivkane]

Hi!
I have already fiiled 1040X for 2007 but did this before 04/14-will it cause any issue? I did not mention the heading "stimulus package"- as it does not come up in standatd 1040x-will this be ok to get payment? Do I need to file 1040X for state also this year(today is last date!) or can do this along with the normal 1040 for state next year?

Regards,

R

[stldude]

I'm thinking about sending the Amendment forms today. Now, should i send just one for State or should i also send one for Federal? Turboxtax s/w advised me to send just one for State ??? Pls. respond ! ! ! ! !

[a_tyagi26]

I thought whole objective for stimulus package was to stimulate economy ASAP in 2008. I am sure if I don't get that money this year then I aint gonna stimulate the economy. Also I am sure I am not alone there should be millions like me who will not get money and hence not achieve objective of stimulus package.

Also the survery by various recognised agencies in US have shown that majority of people will not spend the money they receive but will keep in savings or pay off debt.

Lets see how this thing unfolds later this year to keep recession at bay.

[gc_dedo]

I didnt apply for EAD during July fiasco.
To get stimulus package for my wife and kid i want to apply for EAD for them so they can get SSN.

Is it possible to apply for EAD for minor child to get SSN to get the stimulus payment?

[Totoro]

See the text and link below:

Not eligible at the current time? If your circumstances change and you become eligible after you file your 2007 federal tax return, you can always file an amended return using Form 1040X. File the form after April 14, 2008, and allow 8-12 weeks of processing time before making any inquiries about your payment. See a sample with instructions.

http://www.irs.gov/newsroom/article/0,,id=179211,00.html

No, you cannot file an amended return for this purpose since the numbers will not match. You must file on you 2008 return.

[rameshvaid]

I didnt apply for EAD during July fiasco.
To get stimulus package for my wife and kid i want to apply for EAD for them so they can get SSN.

Is it possible to apply for EAD for minor child to get SSN to get the stimulus payment?

Yes, you can do it for minor child. I applied for EAD for my minor son in July and got his EAD card and subsequently applied and got SS # also. HE IS 10 yrs.

RV

[msr1234]

Yes, I too applied for EAD for my daughter who is 3 yrs old during July fiasco,and got EAD and applied for SSN based on EAD , got SSN.

[prav27]

Yes, I too applied for EAD for my daughter who is 3 yrs old during July fiasco,and got EAD and applied for SSN based on EAD , got SSN.

I have a question about EAD for 3 year old? Did you sign the I-765 form and does the EAD issued has any signature on the card.

[jung.lee]

No, you cannot file an amended return for this purpose since the numbers will not match. You must file on you 2008 return.

Here is the link to the FAQ: <http://www.irs.gov/newsroom/article/0,,id=179211,00.html> (http://www.irs.gov/newsroom/article/0,,id=179211,00.html)

The relevant portion is:

"Not eligible at the current time? If you're not eligible this year but you become eligible next year, you can claim the economic stimulus payment next year on your 2008 tax return."

This is going to be similar to the stimulus payment received under the Economic Growth and Tax Relief Reconciliation Act of 2002 (EGTRRA '02) wherein a smaller stimulus payment of $300 ($600 married filing jointly) was mailed in 2002 I think, based on 2001 tax return status.

However, I remember that for those whose status changed, for example, 2001 tax return was single so received a $300 check, then got married in 2002 - spouse joined from India, say - and filed jointly for 2002, then you were able to get a "tax credit" added to the bottom of your tax liability on the second page of your 1040 for $300, for the additional portion of the stimulus you missed on the first check.

Coming back to 2008, you may still be able to obtain a tax credit for your spouse and kids if you were able to get their real SSNs in time for the tax filing for 2008, and then correctly fill their details out on the 1040, and figure your tax liability, then subtract the full tax credit (say $1,800) from this Economic Stimulus Act of 2007 from your total tax liability. This will net you a larger refund if you were already due one, or may reduce the amount you owe at the end of the year. I hope TurboTax and other programs will correctly account for this (as I believe they did in 2001/2002) for those who have this issue. Otherwise your tax accountant should fill out correctly (we hope :rolleyes:) when he/she does your taxes.

Good luck and be sure to seek true tax advice from a professional and not believe everything you read here.

Cheers!

[Totoro]

If anyone affected by the ITIN rule is located in the Silicon Valley / San Francisco area, please PM me. A reporter for the San Jose Mercury News is doing a story on this and he wants to interview local people affected by the ITIN rule.