Can I claim an Economic Impact Payment (EIP) for my US child/children? Even if I am not a US citizen as a parent?

Do you file every year in the United States then you have received your Economic Impact Payment also from your child who is dependent. But if your child is a US person or US citizen and the parent is not, is your US child entitled to the Stimulus check? And how do you claim this $2,500 payment?

Criteria for Economic Impact Payment (EIP)

The eligibility criteria for the Economic Impact Payment (EIP), also known as the stimulus check, can be complex and depend on a variety of factors. However, as a general rule, if your child is a U.S. citizen or resident alien with a valid Social Security number and is not claimed as a dependent on someone else’s tax return, then they may be eligible for the EIP.

The Economic Impact Payment (EIP), also known as the stimulus check, is a one-time payment made by the U.S. government to eligible individuals in order to provide economic relief during times of financial hardship. Here are some general terms and conditions of the EIP:

Eligibility

To be eligible for the EIP, the child must be a U.S. citizen or resident alien with a valid Social Security number, not be claimed as a dependent on someone else’s US tax return, and meet certain income requirements. At the time of writing this blog, it is not yet known when or if the U.S. government will cease issuing the EIP. Americans Overseas is, of course, closely monitoring this information and will share this news as soon as more is known.

Payment Amount

The payment amount varies depending on your filing status, adjusted gross income, and number of eligible dependents. The maximum payment amount for a child is $2,500 (first payment $500, second $600, and third $1,400).

Payment Distribution

The IRS distributes EIPs through direct deposit, paper checks, or prepaid debit cards. If you have filed a tax return for 2020 or 2021, the IRS will use that information to determine your eligibility and payment amount. If you have not filed a tax return, the IRS may use information from your 2019 tax return or other government records to determine your eligibility. Haven’t filed any tax returns for your child? You should file tax years 2020 and 2021 to claim the payments.

These are some general terms and conditions of the EIP, but specific rules and requirements may apply based on your individual situation. It’s always a good idea to consult with a tax professional, Americans Overseas, or the IRS for more information.

The child has no income, can we still file a tax return?

Yes, the parent can definitely do that. There is a zero declaration, which indicates that there is no passive or active income. This declaration is often less costly to prepare, as the provided information is very clear for the tax advisor. Please note: if the child does exceed the FBAR threshold of $10,000 (having a combined balance of €10,000 on all accounts at any point during the year) and fails to report it, it is advisable to carefully discuss how he can reenter the U.S. tax system without penalties.

Need more information about the Economic Impact Payment?

We, the founders of Americans Overseas, were born in the Netherlands and obtained our American nationality through our (American) mother. When we heard about this for the first time around 2013, we were in total disbelief (it can’t be true!), anger (how can they do this?), fear (am I going to get fined or pick up other problems?), and panic (what should I do?).

It is (unfortunately) true that there is an additional American tax levy. But there’s no information from the local government, and when approached, the consulate referred us to the IRS, and the IRS was impenetrable.

That’s why we started this initiative to help people from all over the world by providing proper information to avoid unnecessary panic and offering help free of obligation and free of charge. If needed, we have a network of affordable professionals (accountants) who can help you with your tax obligations.

If you have more questions about giving up your US citizenship and the US citizenship fees, you can contact us at Americans Overseas.

Contact us for more information