# stimulus check



## crisvic (Jan 25, 2020)

Good morning. I,m being asked if the $1200 stimulus check received in 2020 has to be reported or shown anywhere in Form 1040 or schedules?..I don,t think so but want to make sure...Also...on the spanish tax return of a retired u.s. citizen living in Spain.,he declares U.S. and spanish Social security pensions, 23,200euros ttl. This amounts to $2900 taxes owed in his spanish tax return. He always credited this taxes on Form 1116 in the past. Any change for 2020? Thank you so much.


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## Nononymous (Jul 12, 2011)

Regarding the stimulus benefit, since it's a refundable tax credit it is most definitely not reported as income on a US return. I would also take the position that it's not income as far as Spain (or any other country) is concerned.


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## 255 (Sep 8, 2018)

crisvic -- The "stimulus" payments (Economic Impact Payments) are actually advances to the "Recovery Rebate Credit." Complete the "Recovery Rebate Credit Worksheet," on page 58 of the 2020 IRS 1040 and 1040-SR Instructions and transfer the result to line 30 of IRS form 1040. This is also how you get your stimulus payment, if you did not receive either EIP 1 or EIP 2, or both.

2020 Instructions for Form 1116 (irs.gov) 
2020 Form 1116 (irs.gov) 

Cheers, 255


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## crisvic (Jan 25, 2020)

255 said:


> crisvic -- The "stimulus" payments (Economic Impact Payments) are actually advances to the "Recovery Rebate Credit." Complete the "Recovery Rebate Credit Worksheet," on page 58 of the 2020 IRS 1040 and 1040-SR Instructions and transfer the result to line 30 of IRS form 1040. This is also how you get your stimulus payment, if you did not receive either EIP 1 or EIP 2, or both.
> 
> 2020 Instructions for Form 1116 (irs.gov)
> 2020 Form 1116 (irs.gov)
> ...


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## crisvic (Jan 25, 2020)

Thank you so much for your reply....I did get the Cares act $1200 check...my question was if the $1200 was to be entered or shown on form 1040 somewhere or is not to be reported at all...Thanks again


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## crisvic (Jan 25, 2020)

crisvic said:


> Thank you so much for your reply....I did get the Cares act $1200 check...my question was if the $1200 was to be entered or shown on form 1040 somewhere or is not to be reported at all...Thanks again


Excuse me...now reading page 58 i see what you meant...........spouse NRA also got 2 checks but she returned them both following the advised by her enrolled agent....they filed 2019 separatly..Spouse, NRA does,nt file as her u.s. source income( spousal benefits is only $4400 with a 25,5% withholding)....Thanks


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## byline (Dec 5, 2011)

Nononymous said:


> Regarding the stimulus benefit, since it's a refundable tax credit it is most definitely not reported as income on a US return. I would also take the position that it's not income as far as Spain (or any other country) is concerned.


You are correct. Economic stimulus payments are not reported as income on a U.S. tax return, and are not reported as income on a Canadian tax return, either: CRA says U.S. Covid-19 payments not taxable in Canada

I would assume that's true for Spain, as well.

The only entry to be made on a U.S. tax return is if a filer did not receive an economic stimulus check, and should have: Will I Owe the IRS Tax on My Stimulus Payment?


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## crisvic (Jan 25, 2020)

byline said:


> You are correct. Economic stimulus payments are not reported as income on a U.S. tax return, and are not reported as income on a Canadian tax return, either: CRA says U.S. Covid-19 payments not taxable in Canada
> 
> I would assume that's true for Spain, as well.
> 
> The only entry to be made on a U.S. tax return is if a filer did not receive an economic stimulus check, and should have: Will I Owe the IRS Tax on My Stimulus Payment?


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## crisvic (Jan 25, 2020)

Thanks so much...as far as know stimulus checks taxable in Spain, but as Spain,s tax season starts in April there might be a change in the norms...


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## Nononymous (Jul 12, 2011)

crisvic said:


> Thanks so much...as far as know stimulus checks taxable in Spain, but as Spain,s tax season starts in April there might be a change in the norms...


Is that view based on statements from the Spanish authorities, or just general nervousness?


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## crisvic (Jan 25, 2020)

based on comments in a spanish tax forum...looks like some u.s. citizens living in Spain are inquiring..but nothing official yet. Tax season in Spain starts on the 7th of April.


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## 255 (Sep 8, 2018)

crisvic -- The "Stimulus Payment," is an advance of a tax credit. If you didn't get the advance, either direct deposit, by check or by prepaid debit card, you can still take the credit on your 2020 Federal Income Taxes (line 30, form 1040.) I see no rational way to consider it income, in the U.S., Spain or on Mars. Cheers, 255


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## kilometerfreak (Apr 10, 2021)

crisvic said:


> based on comments in a spanish tax forum...looks like some u.s. citizens living in Spain are inquiring..but nothing official yet. Tax season in Spain starts on the 7th of April.


Coud you provide a link to this? I am also wondering whether EIP's are taxable in spain and would like to follow how this develps.... thanks


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## Nononymous (Jul 12, 2011)

The general rule for things like the stimulus benefit, if you don't know whether it's taxable, is as follows:

1. Assume it's taxable, declare it as taxable income, and pay tax on it. The local authorities will happily accept your money, no questions asked.

2. Assume it's not taxable, don't declare it as taxable income. Since the local authorities will not otherwise know a thing about it, they won't ask questions.

3. Ask the local authorities for an opinion.

The general consensus is that the stimulus benefit is not income, but rather an advance on a tax credit, and therefore not taxable in your country of residence. But one is free to pay tax on it.


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