Another group of taxpayers surprised by an economic stimulus detail
Filed under: Tax
Last week, fellow WalletPop blogger Julie Tilsner clued everyone in to this little known delay in receiving your economic stimulus money: "If filing or preparation fees were deducted from your 2007 refund, or you received a rapid refund, you will be receiving a check instead of a direct deposit." Now word is out that a second group of taxpayers will be disappointed: those with spouses who do not have Social Security numbers will not receive any rebate money. The economic stimulus package was set up with this provision to prevent illegal immigrants from getting rebates. And I can't say I disagree much with this detail. While illegal immigrants probably would have put the money into the U.S. economy, it just wouldn't make any sense to give this money to someone who's not in the country legally.
But what about those foreigners who are here legally, and just don't have Social Security numbers? Unfortunately, they aren't eligible for this little perk received by those who do. Even the spouses of those without Social Security numbers won't receive a rebate check if they've filed their taxes jointly.
There are probably about 1 million legal residents of the U.S. who have green cards, but are waiting for paperwork for their spouses. It's hard to know how many others will be affected by this detail. Lawmakers have to continuously balance interests of many people when making their decision. This detail was an unintended consequence, and I think it's a small price to pay in order to make sure those in the country illegally don't benefit.
Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.
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Reader Comments (Page 1 of 1)
5-12-2008 @ 2:28PM
Jerri said...
Geeze,
They ( the IRS ) just keep coming up with excuse after excuse. SAD
Reply
5-12-2008 @ 3:11PM
Jack (SFC: 4983 4617 3409) said...
If you thought some entity was going to give so much money away without any catches I'd like to live in the world you live in.
5-14-2008 @ 3:43PM
Paula said...
So very true, excuses, excuses. If they knew people who had school loans issues would not get this check they should have said so before many people on fixed incomes who normally don't have to file a return spent money to have there taxes done just to recieve this stimulus check. Retired and V.A. people on fixed incomes do not always have the extra money to spend and be told, " Oh " if you owe on a chool loan or back child support " guess what?, you are out of luck"
What a crock!
5-14-2008 @ 3:44PM
Tracy Coenen said...
It's not a "crock" that those who legally owe money and haven't paid it have their checks applied to what they owe. They should be thankful that their balance is being reduced by this. And if they don't like it... I suggest that they pay off what they owe so that next time they CAN get a check.
5-22-2008 @ 4:12PM
KEN said...
AND FOR THOSE WHO OWE STUDENT LOAN,BACK STATE TAXES OR CHILD SUPPORT WILL NOT GET ANY MONEY. THEY HAD SAID BEFORE THAT THIS WAS A STRAIGHT TO YOUR POCKET PACKAGE. NOT FAIR TO VOTE YES, THEN AFTER APPROVING, MONEY BEING GIVEN BACK TO THE GOVERNMENT. ITS A CROCK OF ****!
Reply
5-22-2008 @ 4:18PM
Tracy Coenen said...
A crock? If people would pay their taxes, child support, and student loans, they'd get their check. Since they can't pay those things, they deserve to have the money taken and applied to what they owe!