Stimulus Check for Newly US Resident

[Yadir]

I have an interesting case.  My client's wife became a US resident on 8/2019.  They been filing together for several years with the wife's ITIN number.  

Last year in their 2019 taxes we used her ITIN number instead of her newly Social Security number because we have had several cases with other clients the IRS holding returns for long periods of time and sometimes even denying refunds (another topic for another discussion)  when the SS is less than 6 months of the previous year.  The taxes were made before the pandemic hit so we didn't know that this disqualified them from the Stimulus checks. 

Now this year my client received the second stimulus for himself and not for his wife which we know we can claim it this year with the RRC BUT he is now asking if they are going to be able to get the first stimulus check since she DID have social security number all 2020 and 4 months of 2019.

* Will I have able to us the Recovery Rebate Credit for that first round?

* Should I make an amendment return for 2019 and THEN file 2020 taxes and apply the RRC?

or anybody has any other suggestions?  I know that amending will take time and I am not sure client will be happy.  

[sjrcpa · Accepted solution]

The entire recovery rebate to which this client is entitled will be computed on their 2020 1040.

[Yadir]

Thank you VERY much.  This is good news.  

[BobKamman]

@Yadir  "we have had several cases with other clients the IRS holding returns for long periods of time and sometimes even denying refunds (another topic for another discussion)"

How many years ago was this?  At some point it's time to take a look at whether the work-around is still needed.  

[qbteachmt]

Do not amend 2019 if nothing about 2019 filing has changed. Just because it was used as a reference to jump start Advance Payments has nothing to do with anything now.

[Yadir]

Actually this has happened in the last two tax seasons. The IRS holds the return and most often they do not accept the EIC. 

[Yadir]

Thank you. 

[sjrcpa]

You're welcome.

[BobKamman]

And you get the EIC with an ITIN?

[Yadir]

No, with ITIN, they don get EIC but when you become a US Resident you get a SS number and therefore you are eligible to EIC.