u.s. expat tax guide – brazil
Are US Expats in Brazil Eligible for 2024 COVID-19 Stimulus Payments?
Yes, as a US citizen living in Brazil, you may still qualify for COVID-19 stimulus payments. Many expats mistakenly assume they can’t receive these payments, but eligibility is still possible if you meet the right conditions.
What are the eligibility criteria for the stimulus payments?
- US Citizen or Resident Alien: You must have a valid Social Security Number (SSN) issued before April 18, 2022, regardless of where you live.
- Income Limitations: Your Adjusted Gross Income (AGI) must be below certain thresholds. For example, individuals with an AGI up to US$75,000 (or US$150,000 for couples filing jointly) were eligible for the full payment in earlier rounds.
- Filing a Tax Return: You need to have filed a US tax return for the relevant tax year, typically 2019 or 2020.
- Not Being a Dependent: You cannot be claimed as a dependent on someone else’s tax return.
How can US expats in Brazil claim their stimulus payments?
You can claim the stimulus payments by filing a US tax return. On your return, you report the payment as a tax credit. To claim the third stimulus payment (US$1,400 per adult and dependent), you need to file your tax return by April 2025.
What are the income requirements for getting the US$1,400 stimulus payment?
To be eligible for the US$1,400 stimulus payment, your Adjusted Gross Income (AGI) must be below US$75,000 if filing as an individual. If your AGI was below this amount in 2021, you could qualify for the full payment.
Can using deductions like FEIE help you qualify for the stimulus?
Yes, using deductions such as the Foreign Earned Income Exclusion (FEIE), the standard deduction, or the Foreign Housing Exclusion (FHE) can lower your AGI, which might help you qualify for the stimulus payments. For instance, if you earned US$140,000 in 2020 but used the FEIE to exclude US$107,600 of foreign income, your AGI would drop to US$32,400, making you eligible for the full payment.
Why did some US expats in Brazil miss out on stimulus payments?
Many US expats missed their stimulus payments because they didn’t realize they needed to file a US tax return, or they assumed they weren’t eligible due to their residency abroad.
If you missed out, you can still file a tax return to claim the payment. It’s money you are entitled to, so it’s worth taking the time to file.
How can you confirm if you received your stimulus payments?
Although the IRS “Get My Payment” tool is no longer available, there are other ways to check:
- Review Your Tax Returns: Look at your 2020 and 2021 tax returns for the Recovery Rebate Credit. If you didn’t receive your payment, this credit should have either increased your refund or reduced your tax bill.
- Log in to Your IRS Account: By logging into your IRS account, you can access your tax transcripts, which will show any payments made, including stimulus payments. If you don’t have an account, you can create one online.
- Request a Payment Trace: If you believe a payment was issued but not received, request a payment trace by submitting Form 3911, “Taxpayer Statement Regarding Refund.”
Do government benefits impact your stimulus payments?
No, benefits like Social Security or unemployment insurance do not affect your eligibility for stimulus payments. These payments are treated as a tax credit, meaning they don’t count as taxable income or influence your eligibility for most government assistance programs.
For example, receiving unemployment benefits won’t reduce the amount of stimulus you receive. Similarly, stimulus payments won’t affect your Social Security benefits or eligibility limits.
Does earning interest on stimulus payments affect your government benefits?
While the stimulus payments themselves don’t impact government benefits, any interest earned from those funds could be counted as income. If you’re concerned, it may be helpful to consult a tax professional or financial advisor.
Can you still claim stimulus payments if you owe back taxes?
Yes, you can still claim your stimulus payments even if you owe back taxes. The IRS did not use the stimulus payments to cover federal tax debt, meaning you are still eligible for the full amount, regardless of any unpaid taxes.
What if you are married and filing jointly?
If you’re married and filing jointly, both spouses must meet the eligibility criteria to receive the full payment. If one spouse does not qualify, for example, if they do not have an SSN, the amount you receive could be reduced. However, the eligible spouse can still receive their portion of the payment.
What should you do if the IRS says your payment was sent, but you didn’t receive it?
If the IRS says your payment was sent but you haven’t received it, you can request a payment trace. Submit Form 3911 to the IRS so they can verify whether the payment was cashed or lost. If it was never cashed, they will reissue the payment.
