How do you find out if you're a resident alien for tax purposes?

[asmi909697]

I have been in US since 2016 and my tax residency status changed midway in 2021. Hence, I assumed I had dual status in 2021 for tax purposes. However, when I do try to use another software such as Sprintax to file my taxes, it does not allow me to do that, since I do meet the substantial presence test for 2021. Does that mean my tax residency for entire year is Resident? And not Non-Resident? I'm asking this because the recovery rebate credit gets applied to my file and I'm not sure if someone in this situation qualifies for it.

[LoganathanB]

Yes your tax residency is resident alien.

If you came into the USA in 2016 on an F1 visa, you were a nonresident for five calendar years.

You become a resident alien if you pass the substantial presence test.

You are a resident alien for 2021 and you are eligible to get the third stimulus if you otherwise qualify.

Click on the link for more information

Residency

[LoganathanB]

Yes your tax residency is resident alien.

If you came into the USA in 2016 on an F1 visa, you were a nonresident for five calendar years.

You become a resident alien if you pass the substantial presence test.

You are a resident alien for 2021 and you are eligible to get the third stimulus if you otherwise qualify.

Click on the link for more information

Residency

[asmi909697]

Thanks for your response. I was under the impression that since I did not receive the stimulus when it was issued I'm not eligible for it. However I understand the change in residency is the reason why it can show up while filing returns.

[DMarkM1]

Yes. The stimulus payments made in 2021 were an advance of the Recovery Rebate Credit on your 2021 tax return.  Since you did not receive the advance you will get the Recovery Rebate Credit on your tax return assuming you are otherwise eligible.  Here is an IRS FAQ with more information (See question C2).  

[DMarkM1]

Yes. The stimulus payments made in 2021 were an advance of the Recovery Rebate Credit on your 2021 tax return.  Since you did not receive the advance you will get the Recovery Rebate Credit on your tax return assuming you are otherwise eligible.  Here is an IRS FAQ with more information (See question C2).  

[JamesG1]

The qualifications for the third stimulus payment are: 

• you were a U.S. citizen or U.S. resident alien in 2021,
• you were not a dependent of another taxpayer’s 2020 tax return, and
• you have a Social Security number. 

There are income limitations are if your adjusted gross income (AGI) is more than: 

• $150,000 if married and filing a joint return or filing as a qualifying widow or widower
• $112,500 if filing as head of household or
• $75,000 if filing as a single or as married filing separately. 

If you did not receive the third stimulus payment, you may receive that amount through a Recovery Rebate Credit found on line 30 of the 2021 Federal 1040 tax return.

In TurboTax Online, you are prompted to input the third stimulus check information under Review down the left hand side of the screen.  You can also access your stimulus check choices by following these steps: 

• Down the left side of the screen, click on Federal.
• Across the top of the screen, click on Other Tax Situations.
• At the screen We're almost there… or the screen That's all we need…,  click on Let’s keep going.
• At the screen Let’s double-check the amount you received, answer the questions and click Continue. 

TurboTax will compare your stimulus payment amount to the computations within TurboTax.  The computations within TurboTax are based upon the information that you have entered into the tax software.  If you are due an additional amount, it will be issued as a Recovery Rebate Credit (RRC) on line 30 of the 2021 1040 tax return.

If you have e-filed your 2021 Federal tax return and the tax return is accepted by the IRS, you will have to amend your 2021 Federal tax return and correct the entries and calculations to receive the Recovery Rebate Credit.

@DMarkM1