Recovery Rebate Credit for New U.S. Resident in 2021

[Chowdahead]

I have a client whose wife and 2 kids arrived in the U.S. in August 2021 and they are filing 2021 tax return jointly.  I believe they can claim the Recovery Rebate Credit for the wife and 2 kids, however because the credit amount would be large ($4,200), I want to be more comfortable with the info I am giving them.  The husband already received his EIP3.

My trusty U.S. Master Tax Guide says they only cannot be a nonresident. 

According to the Recovery Rebate FAQ on the IRS Website you must have a valid SSN and resided in the U.S. in 2021.  However I don't see any specific time requirement (i.e. 31 days, 6 months, etc)

Quote

Generally, if you were a U.S. citizen or U.S. resident alien in 2021, you were not a dependent of another taxpayer, and you either have a valid SSN or claim a dependent who has a valid SSN or ATIN, you are eligible to claim the 2021 Recovery Rebate Credit.  You may also be eligible if you file a joint return with your spouse, you or your spouse were a U.S. citizen or U.S. resident alien in 2021, and either you, your spouse, or both of you, have a valid SSN or you claim a dependent who has a valid SSN or ATIN.

Seems to me like they qualify.  Any thoughts?

[Pacun]

Since one of the spouses was residing in the US for more than 6 months, I would request those $4,200. 

My bother's wife was waiting for her Visa for 2 years and both years they filed jointly. She was a student and it was very beneficial to my brother to file jointly.  I applied for an ITIN and sent a letter signed by both stating that they agreed to file jointly as resident for tax purposes and that she was going to report world-wide income (which was 0). In your case, the strong requirement is valid social security number and by virtue of them signing a letter stating that they want to file jointly as residents for tax purposes, reporting income earned while abroad, they should be entitled to all benefits except those specifically ruled out such as EIC.

I was waiting for this post to be answered by someone else but it didn't happened. At least I will bump it up.

[TexTaxToo]

I don't see any specific residency requirement for RRC (as long as they meet the normal requirements needed to file a 1040 and claim dependents).  Citizens living abroad would qualify.

The 6-month requirement is for refundable CTC, but only requires one spouse to be resident in the U.S., so they would qualify for that as well.

 

 

[Chowdahead]

On 1/30/2022 at 11:15 AM, TexTaxToo said:

The 6-month requirement is for refundable CTC, but only requires one spouse to be resident in the U.S., so they would qualify for that as well.

 

Thanks, I actually didn't see that regarding the CTC.  Makes sense.