My wife is a nonresident alien filing jointly. How do I answer 2020 stimulus payment?

[Anonymous]

We married in 2020 and will be submitting an application for ITIN along with 2020 taxes filed jointly. In the tax software under Federal Taxes > Federal review, how would I answer "How did you and your wife get your 2020 stimulus payment" ? I am not able to differentiate that my spouse is a non-resident alien.

In 2020 I received partial stimulus payment based on single filing in 2019. Would applying jointly for 2020 disqualify me from a stimulus credit?

[NCperson]

this is currently 'a mess' and but with patience it will work itself out. 

Here is the history:

when Congress passed the 1st stimulus earlier in the year, on a joint return, if either spouse had an ITIN, both spouses were disqualified from the stimulus.  So TT asks that question about the ITIN now.

However! 

When Congress changed the tax law that Trump signed the other night, this changed.

Retractive to the 1st stimulus,  on a joint return, both stimulus payments only disqualify the spouse with the ITIN from receiving the payment - the other spouse is eligible. 

Sounds like in 2019, you were single, so you received the 1st stimulus ($1200)  payment and will receive the 2nd one ($600) which are based on the 2019 tax submission.  Your spouse is ineligible if there is only a ITIN .

But what really is occurring is that the stimulus is based on the 2020 tax return, less what was received.  So it should work out that that Line 30 of Form 1040 should be a zero, assuming you receive the 2nd stimulus payment before submitting your tax return. 

Suggest not worrying about the confusion because Turbo Tax is going to have to re-program this section before tax returns can be submitted in late January.  Let's see what the screens look like at that time.

[Anonymous]

Thanks for the information. I'm starting to understand the history behind all of this now. To clarify I never received the full $1200 stimulus payment in early 2020. Less than half since my 2019 filing was over the $75,000 threshold but under $100,000.

If our joint income for 2020 is under the $150,000 limit, I assume I can claim tax credit on my 2020 filing for the remainder of the $1200 and/or $600? And the spouse would receive no tax credit.

[NCperson · Accepted solution]

that is correct - 

the stimulus that you are eligible for is all reconciled by the 2020 tax return; what ever occurred in 2018 and 2019 is as it never existed for stimulus purposes. 

So you should receive $1200+600 in stimulus  less whatever was sent to you directly by the IRS on the tax return. 

Again, watch Line 30 on Form 1040 closely just before you file as the software is going to need some updates given the tax law changes of the other day.