Recovery Rebate Credit Valid SSN (Is Work Authorization still required?)

[Coin3]

I am seeing mixed messages about whether or not a SSN valid for employment is required to be eligible for the Recovery Rebate Credit for 2021. In my case, I am wondering if my wife is eligible for the credit. We are filing MFJ, and she has a SSN that is not valid for employment.

1040 Instructions for the 2021 Tax Year 

"A valid social security number is one that is issued on or before the due date of your 2021 return (including extensions)."

1040 Instructions for the 2020 Tax Year 

"A valid social security number is one that is valid for employment in the United States and is issued before the due date of your 2020 return (including extensions). "

However, this page about the Third Economic Impact Payment (which the 2021 Recovery Rebate Credit is for) does mention the need for work authorization.

https://www.irs.gov/newsroom/more-details-about-the-third-round-of-economic-impact-payments 

"As with EIP2, joint filers where only one spouse has a Social Security number (SSN) will normally get the third payment. This means that these families will now get a payment covering any family member who has a work-eligible SSN."

[MinhT1]

In order to qualify for the third stimulus (and the 2021 Recovery rebate credit), a person has be a U.S. citizen or U.S. rsident alien. All U.S. resident aliens have a SSN valid for employment in the U.S.

Your quote from this IRS document is correct.

[Coin3]

Thank you for the quick reply.

My wife is currently a non-resident alien with a SSN not valid for employment. However, we intend to have her treated as a U.S. resident for tax purposes. Other than the article referencing "work-eligible" SSN, are there any other sources that make it clear that my wife would not be eligible for the third EIP? I just find it strange that for 2020, every reference to eligibility for the payments stated that only SSNs valid for employment were eligible, but for 2021 they decided to take that part out. Why not copy and paste from the previous year if the rule is the same?

Thank you.

[Vanessa A]

The link you supplied actually does say that the person with a work eligible social security  number will get the credit.  Therefore, since her SSN is not valid for work, she is not eligible for the Stimulus payment unless you are active duty military.

"How are married couples affected, if only one spouse has a Social Security number?

As with EIP2, joint filers where only one spouse has a Social Security number (SSN) will normally get the third payment. This means that these families will now get a payment covering any family member who has a work-eligible SSN.

For taxpayers who file jointly with their spouse and only one individual has a valid SSN, the spouse with a valid SSN will receive up to a $1,400 third payment and up to $1,400 for each qualifying dependent claimed on the 2020 tax return." Work Eligible Stimulus SSN

[Coin3]

Thank you. I understand that does appear to be the case.

But don't you find it odd that that is the only mention of work eligibility for the third EIP and the Recovery Rebate Credit for 2021? I can accept the fact that my wife may not be eligible for the credit, but I believe the requirement should be clarified with the IRS.

[Coin3 · Accepted solution]

I just got off of a call with an IRS representative. Their IRS worker ID is 307080. According to them, internal IRS documents state that "For the third Economic Impact Payment, the SSN does not need to be valid for employment."

I asked the representative to let upper management know of the confusion regarding this. They agreed that the current documents available to the public do not make it clear that the requirement has changed for the third EIP, and thus the Recovery Rebate Credit for 2021.

Turbotax, please confirm this information for yourselves and take this into consideration within the tax prep software.