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As we know that US government announced $2T Covid-19 stimulus package on March 24. It includes a payout of $1200 to all taxpayers.
Who are the individuals who will get that benefit? Is it all US Taxpayers or only US Citizens? Will a resident alien on work visa, who pays taxes, get that benefit as well?
No. The benefit is issued as a tax credit by amending the Internal Revenue Code of 1986. It applies to all US taxpayers subject to the definition of "Eligible Individual" in the CARES Act, which is as follows:
“(d) Eligible Individual.—For purposes of this section, the term ‘eligible individual’ means any individual other than—
- “(1) any nonresident alien individual,
- “(2) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, and
- “(3) an estate or trust
To explain subsection (2) in layman's terms - if you are listed on someone else's tax return as a dependent, you are ineligible for the check.
As pointed out in the comments, section (g) also stipulates that in order to qualify for the check, the individual must have included their social security number in their tax returns.
So as long as the alien is resident (i.e. has a green card or passes the substantial presence test), is not someone's dependent, included an SSN in their tax return, and earns less than $99,000, they will be eligible to receive the check.
Note the stated amount of $99,000 comes from the full check value of $1200 being reduced by $5 for every $100 you earn over $75,000, therefore falling to $0 after $99,000.
I just want to clarify from CDJB's otherwise correct answer that the "earn less than $99k" part is not the limitation on earned income. that part is:
(d) Limitation Based On Adjusted Gross Income.—The amount of the credit allowed by subsection (a) (determined without regard to this subsection and subsection (f)) shall be reduced (but not below zero) by 5 percent of so much of the taxpayer’s adjusted gross income as exceeds $75,000 ($150,000 in the case of a joint return).
CDJB's $99k is the max income a single person can make to be eligible to receive any check, after the credit reduction mentioned in the above quote
No, you do not have to prove your citizenship, because the payment is not only for US citizens. It is for all US citizens or "resident aliens" for tax purposes, who have a Social Security Number, make less than the income threshold (it phases out at an AGI of between $75,000 and $99,000 for single filers and $150,000 and $198,000 for joint filers), and cannot be claimed by someone else as a dependent on their taxes.
The recovery rebates are provided in the CARES Act (text here), section 2201. The parts that limit eligibility for the rebate are the following:
The income limitation:
(c) Limitation based on adjusted gross income.—The amount of the credit allowed by subsection (a) (determined without regard to this subsection and subsection (e)) shall be reduced (but not below zero) by 5 percent of so much of the taxpayer’s adjusted gross income as exceeds—
(1) $150,000 in the case of a joint return,
(2) $112,500 in the case of a head of household, and
(3) $75,000 in the case of a taxpayer not described in paragraph (1) or (2).
Disallowing it to nonresident aliens, people who can be claimed as dependents, and estates and trusts:
(d) Eligible individual.—For purposes of this section, the term ‘eligible individual’ means any individual other than—
(1) any nonresident alien individual,
(2) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, and
(3) an estate or trust.
And disallowing it to people who don't have a Social Security Number (or whose spouses don't have a Social Security Number if filing jointly):
(g) Identification number requirement.—
(1) IN GENERAL.—No credit shall be allowed under subsection (a) to an eligible individual who does not include on the return of tax for the taxable year—
(A) such individual’s valid identification number,
(B) in the case of a joint return, the valid identification number of such individual’s spouse, and
(C) in the case of any qualifying child taken into account under subsection (a)(2), the valid identification number of such qualifying child.
(2) VALID IDENTIFICATION NUMBER.—
(A) IN GENERAL.—For purposes of paragraph (1), the term ‘valid identification number’ means a social security number (as such term is defined in section 24(h)(7)).
(B) ADOPTION TAXPAYER IDENTIFICATION NUMBER.—For purposes of paragraph (1)(C), in the case of a qualifying child who is adopted or placed for adoption, the term ‘valid identification number’ shall include the adoption taxpayer identification number of such child.
(3) SPECIAL RULE FOR MEMBERS OF THE ARMED FORCES.—Paragraph (1)(B) shall not apply in the case where at least 1 spouse was a member of the Armed Forces of the United States at any time during the taxable year and at least 1 spouse satisfies paragraph (1)(A).
(4) MATHEMATICAL OR CLERICAL ERROR AUTHORITY.—Any omission of a correct valid identification number required under this subsection shall be treated as a mathematical or clerical error for purposes of applying section 6213(g)(2) to such omission.
To answer your question, someone on a work visa will almost certainly qualify for the payment if their income is below the threshold, because they are "resident aliens" for tax purposes since they pass the Substantial Presence Test (except maybe if they arrived this year), and they have Social Security Numbers.
