Economic Impact Payments (EIP)
Many international students received Economic Impact Payments in error. If you are a nonresident for tax purposes, filed your tax returns using TurboTax in any of the previous years and your income was below the threshold ^1^, there’s a high possibility that you received the Economic Impact Payments. Not to worry; follow the instructions below to send back the stimulus money and file your amendments to correct your status with the IRS and pay any tax liabilities you owe.
1. I am an international student on an F1 visa, and I received the Economic Impact (Stimulus) Payments. Do I need to return them?
A person who’s a qualifying resident alien with a valid SSN is eligible for the payment only if he or she is a qualifying resident alien in 2020 (for EIP1 & EIP2) or 2021 (for EIP3) and may not be claimed as a dependent of another taxpayer. A nonresident alien in 2020 (for EIP1 & EIP2) or 2021 (for EIP3) isn’t eligible for the payment. An alien who received a payment but isn’t a qualifying resident alien for 2020 or 2021 should return the payment to the IRS by following the instructions below. Click the link to determine if you were a qualifying resident alien.
2. I received the EIP 1 ($1200), EIP 2 ($600) or EIP 3 ($1400) as a check/direct deposit in my bank account. How do I return it?
Write a check/money order payable to “U.S. Treasury” for each stimulus check you have received and write “First EIP, Second EIP or Third EIP + your SSN” in the memo line.
- Include a brief explanation of the reason for returning the EIP (On a blank piece of paper mention that you are returning this EIP because you were a nonresident alien on F-1 visa and received this in error. Hence, returning it)
- Mail it to the IRS location ^2^ that applies to you.
Same instructions can be found on the IRS website: Returning the Economic Impact Payment
3. I received (or will receive) the EIP as a paper check and have not cashed it yet. How do I return it?
Write “Void” in the endorsement section on the back of the check.
Include a brief explanation stating the reason for returning the check (On a blank piece of paper mention that you are returning this EIP because you were a nonresident alien on F-1 visa and received this in error. Hence, returning it)
- Don’t staple, bend, or paper clip the check.
- Mail it to the IRS location ^2^ that applies to you.
Same instructions can be found on the IRS website: Returning the Economic Impact Payment
4. I filed my 2020 returns using TurboTax and I claimed the EIP 1 and EIP 2 ($1200 + $600) on my 2020 tax return in the form of Recovery Rebate Credit. How do I return it?
If you claimed the stimulus money on your 2020 tax return and you do not qualify for it, then you need to file an amendment and send the money back with the amendment. Do not simply write a check/money order for the amount claimed on your tax return. There could be other credits (Earned Income Credits, Tuition Credits, etc.) you might have accidentally claimed on your 2020 tax returns if you filed using TurboTax or Credit Karma. Contact us to help you file your amendments, correct your status and pay any tax liabilities due.
Sources:
Source 1: Eligibility and Calculation of the Third Payment
Source 2: Returning the Third-round Economic Impact Payment
Source 3: IRS on Economic Impact Payments