You probably know that on March 30, Congress passed the CARES Act to provide relief for Americans struggling through this pandemic. The CARES Act says that most U.S. Citizen adults will receive $1200 each; U.S. citizen and permanent resident children under 16 are supposed to receive $500 each.
But get this: The language of the CARES Act seems to say that if anyone in your family files taxes with an Individual Tax-payer ID Number or ITIN, then your whole family is excluded from receiving the benefit. So, for example, if you are a U.S. Citizen and you file jointly with your spouse who files and pays taxes with an ITIN, then neither you nor your children will get a benefit payment. I’ve spent several hours researching this question, and this is what I’ve read in three different articles, which you can see here, here, and here.
If I’m reading this correctly, this means that Congress and the president acted together to pass a bill that not only excludes undocumented people for filing and paying taxes with their ITIN, but goes even further to also punish their U.S. Citizen and Lawful Permanent Resident spouses and children for living with them, depending on them, and filing taxes with them. The people who allowed this to happen need to hear from us NOW.
Two things you can do about this unfair exclusion:
- Call our elected officials.They are supposed to work for us. Punishing U.S. citizen spouses and children of immigrant tax payers in this way is unacceptable. The next Coronavirus relief package needs to ensure – at a minimum – that every single U.S. citizen and lawful permanent resident is provided with benefits, regardless of the immigration status of anyone in their family or household. (An easy way to stay in touch with our representatives in D.C. is by using “Resistbot.” Just text the word “Resist” to 50409 and you will be connected easily and automatically to our elected officials. I use Resistbot all the time and LOVE it.)
- If you haven’t filed 2019 taxes yet, ask about filing status “Married, filing separately.” Consider this status for 2020 as well. Everyone who knows me can tell you with 100% certainty that I am no tax expert. But the language of the CARES Act and the articles about it suggest that, if you’re married, then filing separately from a spouse who uses an ITIN may permit you to receive the benefit. It will be important to ask a reputable, knowledgeable tax preparer about this. What I can tell you is that, if you’re married, then filing taxes separately from your spouse is not going to cause problems for your or your spouse’s immigration case. The problem on the immigration side comes from filing as “Head of Household” when you’re married – “Head of Household” status is supposed to be reserved for unmarried people.
I hope I’m wrong about the CARES Act
I have made several angry calls to my representative’s and senators’ offices about this exclusion of families of immigrant tax payers. One of the staffers in Senator John Cornyn’s office was “very surprised” by my complaint; she did not believe what I was telling her about the CARES Act and said she thinks it’s not true. At the time I am writing this email, I am waiting for a call back from Cornyn’s tax expert who is supposed to clarify the language of the law.
I really hope I’m misreading the language of the bill and the articles I’ve found. If it turns out I am, I will post a very happy “I was wrong” message next week.