Nathalie is the CEO of MyExpatTaxes, an expat tax software that can e-file expat taxes for an accurate, fast & affordable filing experience.
In 2020 and 2021, many U.S. citizens were eligible to receive three stimulus checks as a way of lightening the financial burden associated with Covid-19. However, if someone had not claimed their stimulus checks, they still could upward of three years later.
The deadline for qualifying taxpayers who lived in the U.S. during 2020 was May 17, 2024. June 15, 2024, marked the deadline for claiming the first two stimulus checks totaling up to $1,800 per qualifying U.S. taxpayer living abroad. (Taxpayers only have three years to claim a refund from the IRS, and the 2020 return, which contained the $1,800 stimulus payments, was due on June 15, 2021, for Americans living abroad.)
However, although you cannot claim all of the stimulus checks, you may still be eligible to claim the final one.
Claiming Your Third Stimulus Check
You don’t want to miss out on claiming the third stimulus check as it could be your last chance to get up to $1,400 in relief. This is essentially free money for you as an American taxpayer.
The third stimulus check has similar criteria to the first two. To qualify, you:
• Cannot be claimed as a dependent on someone else’s U.S. tax return.
• Must have a valid Social Security number.
• Must meet income limits in your 2021 tax return: up to $75,000 for single filers, $112,500 for heads of households and $150,000 for joint filers.
The Streamlined Procedures
If you are one of the many U.S. expats who were unaware of their tax duties, the streamlined procedures could work in your favor. The streamlined procedures work by allowing you to file three prior tax returns and six Reports of Foreign Bank and Financial Accounts (also known as FBARs) without penalties. Even if you have not filed in 20 years, you can still be eligible to use the streamlined procedures to become tax-compliant.
However, to use the streamlined procedures, you must check off all of the following eligibility criteria:
• You haven’t had a primary residence in the U.S. for at least one of the past three years.
• You have been living outside the U.S. for at least 330 days in at least one of the past three years.
• You haven’t filed a federal tax return in the past three years.
• You haven’t filed amended or delinquent tax returns in the past.
• You haven’t filed the FBAR within the past six years.
• Additionally, you must also not have been contacted by the IRS about your U.S. taxes.
The streamlined procedures have these requirements to basically ensure that your failure to file your tax returns was unintentional.
Once you have filed using the streamlined procedures, you will be considered tax-compliant again. With that being said, once you are up to date with your tax returns, please remember to keep filing your U.S. taxes annually.
Avoid unnecessary troubles because once you use the streamlined procedures, you will no longer be eligible for them again if this situation were to occur again.
Can’t Qualify For The Streamlined Procedures?
No one wants to pay penalties for being unaware of an obligation. However, if you have been contacted by the IRS regarding your unfiled tax returns, you will have to check out some other penalty relief programs.
In my experience, the IRS is typically quite understanding of taxpayers’ situations, which is why there is a program called “First Time Abate.” You cannot claim benefits like stimulus checks, but if you qualify, your late payment and filing penalties could be waived.
Claiming Additional Credits With The Streamlined Procedures
An additional plus to using the streamlined procedures to claim your third stimulus check is the fact that you can also claim any Child Tax Credit you missed from past years. Of course, you can only go back three years with your tax returns.
Excluding 2020 and 2021, the criteria stayed relatively the same. To claim the Child Tax Credit, your child must:
• Normally be under the age of 17 (for 2021 returns, it was under age 18).
• Live with you for more than half the year.
• Have a valid Social Security number.
You Still Have A Chance To Get Some Relief
Although you cannot receive all three stimulus checks if you have not done so already, you can still claim one, which could leave you with some extra cash. For those of you who have not filed your prior tax returns, now is the time to receive your Child Tax Credit and third stimulus check.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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