F1 Student Filing as Resident Alien: Am I Eligible for Stimulus/Recovery Rebate Credit?

[freegator]

I am an F1 student and came to the U.S. in August 2015. I think I am considered nonresident alien for tax years 2015 through 2019, and became resident alien for tax purpose starting January 1st, 2020. It seems that the 2020 tax return is the first year I can file as a resident alien with Form 1040 and use turbotax to help with my return. I will file as single. I came across some questions regarding my eligibility for the COVID Stimulus/Recovery Rebate Credit.

In the "Federal Review" section, I got asked the question by turbotax  "It looks like you qualified for the stimulus, did you get any payments?" If I answer "No," it will increase my federal return amount by $1800 and says "Great news! You qualify for the Recovery Rebate Credit." I did not receive any stimulus payment in 2020 or 2021, but I have no idea if my filing status qualifies me for the Stimulus/Recovery Rebate Credit.

Can some experts here explain if an F1 student filing as a resident alien for the first time for 2020 tax return is eligible or not for the Stimulus/Recovery Rebate Credit? If I am not eligible, it seems that in turbotax I have to answer "Yes" to the question "It looks like you qualified for the stimulus, did you get any payments" and then confirm that I have received the full amount of $1200 and $600 for the two stimulus payments, otherwise Recovery Rebate Credit will be added to my federal return amount. If I answer "Yes," will this information be furnished to IRS and be used by IRS in the future to force me to return the money which I never received?

[ErnieS0]

Resident aliens are eligible for the Recovery Rebate Credit. You did not get any payments last year because you filed as a nonresident alien in 2019.

Generally, if you were a U.S. citizen or U.S. resident alien in 2020, were not a dependent of another taxpayer and have a Social Security number that is valid for employment, you are eligible for the Recovery Rebate Credit.  Your credit amount will be reduced 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 for eligible individuals filing as a single or as married filing separately.  

Your payment will be reduced by 5% of the amount by which your AGI exceeds the applicable threshold above.

You are not eligible for the Recovery Rebate Credit if any of the following applies:

• You may be claimed as a dependent on another taxpayer’s 2020 return (for example, a child or student who may be claimed on a parent’s return or a dependent parent who may be claimed on an adult child’s return).
• You do not have a Social Security number that is valid for employment issued before the due date of your 2020 tax return (including extensions). Some exceptions apply for those who file married filing jointly where only one spouse must have a valid Social Security number to claim RRC.
• You are a nonresident alien.

[freegator]

Thanks for the related information. I appreciate your help. If I claim the Recovery Rebate Credit for the first and second stimulus payments on my 2020 tax return as a resident alien, does that prevent me from also claiming tax treaty benefits which require a Form 8833? Is there a rule that says a resident alien claiming the Recovery Rebate Credit cannot claim any tax treaty benefits?

[npierson7]

No, there is no such a rule. You can claim both, they aren't connected tax treatments. 

[freegator]

Thanks. Do I need to include a copy of "Recovery Rebate Credit Worksheet" with my Form 1040 to claim the Recovery Rebate Credit if I have to file paper return?

[DMarkM1]

No.  The worksheet would not need to be filed.  If you print for filing in TurboTax the forms that need to be filed will be included.  A "do not file" watermark will be on applicable pages.