US government stimulus check

[Ron.Henderson]

In the long term, compliance is not a smart move for any dual citizens without US income or assets. But firing off one simple return (sub-FEIE income declaration, nothing else) to score some free money might be worthwhile, especially if you use the cash to fund renunciation.

As for banking and direct deposit, the situation still looks pretty fluid. But I'm thinking that you could open a US bank account through RBC or TD, then enter that number for direct deposit on the 2019 return (whether a regular 1040 + 2555 or the new simplified thing they've proposed, if that works for non-residents) and avoid having to wait for a cheque. Probably not necessary, but one might still want to use a mail-forwarding service as a cutout rather than giving your real address.

[Ron.Henderson]

Fruits of some further research:

For those who would rather receive funds by direct deposit, rather than wait for a cheque (even though it would be fun to have one with DJT's signature):

If you filed a 2019 return without bank information for direct deposit, the IRS claims there will be a form "soon" that you can use to add that information, even if you've received no refunds in the past.

If you have not filed in the past and choose to do so in order to receive the $1200 stimulus payment, you should be able to enter direct deposit information on that return.

Transferwise now offers a multi-currency bank account that is very simple to apply for (Canadians only need a drivers license for ID, so no FATCA concerns) that will provide a US routing and account number for direct deposit in US dollars.

[Frankd1]

My wife (USC, PR of Canada) has been filing every year and getting a refund for the additional child tax credit (we file form 1116) for our to two US/CAN citizen kids.
She still maintains a bank account in the US but we always have the refund cheque’s mailed to our home here in Canada.
We haven’t filed her 2019 return yet but my understanding is that her stimulus cheque and the stimulus cheque’s for each of our kids will be mailed to us here in Canada based on her 2018 IRS return info.

[nelsona]

Sure. Why not?

[MaggieA]

I'm amused by how the noncompliance advocate claims it's hunky dory for US citizens to ignore US laws, "The IRS can't do a thing about it" and yet, is very concerned to conceal one's actual street address from the IRS. If they can't do a thing about it, what does it matter if they know where you live?

[nelsona]

:0)

[nelsona]

Just a correction to what Bubba posted last week regarding ineligibility if one has reduced there income by using FEIE: An amendment was passed removing the lower income threshold, so that using FEIE no longer jeopardizes getting the check.

[MaggieA]

I would greatly prefer to get residency based taxation instead of stimulus checks. But since that option doesn't seem to be on offer, I'll take the checks (spouse and I should both get one) and regard it as a small offset to the misery of filing with the IRS every year.

[Ron.Henderson]

@MaggieA

The point of not giving your real address is to save yourself the trouble of opening letters from the IRS after you cancel the mail-forwarding service, of course!

The new form for non-filers will greatly simplify the process for any non-compliant US citizens wishing to collect the stimulus cheque.

[nelsona]

Got $2900 deposit last night.

[nelsona]

Remember that form is for those that make less than the minimum required filing amount. You are signing to that effect.

[Ron.Henderson]

But of course ;-)

The outcome is however the same: $0 taxable income, $0 tax owing.

One can also take the "treaty position": under the tax treaty, Canada has the first right to tax all income earned in Canada, therefore income earned in Canada is not taxable income in the US and does not count towards the minimum filing amount, therefore a 1040 is not required to be "compliant" with US tax law if one only earns income in Canada. I have no idea whether this position would stand up, but if it achieves the same outcome - nothing owing - and the IRS doesn't seem concerned about 90 percent non-filing rates, then it effectively works.

[Bubba Gums]

regarding ineligibility if one has reduced there income by using FEIE...

One gets the lessor of $1,200 ($2,400) or their net tax liability, unless you are a "taxpayer described." A "taxpayer described" gets $600 ($1,200) + kids. A "taxpayer described" has qualifying income of at least $2,500 or (net income tax liability which is greater than zero AND gross income greater than the standard deduction). Qualifying income is Earned income.

If you use FEIE, do you have tax liability greater than zero? Perhaps you are a "taxpayer described?" If you use FEIE you have no earned income (no qualifying income -> not a taxpayer described), as you have excluded it.

Now if you do have tax liability after the FEIE, pass go collect 1200.

Perhaps my reading of the passed bill is inaccurate?

https://www.congress.gov/bill/116th-con ... 77C490FD17

[Grad467_2]

Good afternoon one and all. Came across this forum after doing a number of searches while getting information to file both my US and Canadian tax return for 2019 and I am extremely happy to have found it since it's been very helpful answering many of my Google questions. I just noticed this thread and I was wondering if I will be receiving a stimulus check? My details are below and thank you for any feedback, advice, etc:

- I started working in the US in 2019 (4 months total) as a Canadian commuter under the TN visa program
- I have a SSN but it is for work purposes only (stated on the card)
- I have an account open in the US (credit union)
- The last tax return I filed in the US was for tax year 2016 (I ended up taking a position in Canada for partial 2016, 2017, 2018 and partial 2019).

Will I be getting a check? Any recommendations?

[Bubba Gums]

Nevermind my previous post, I was looking at the old bill. Earned income and tax libaility is gone as Nelsona described.