The CARES Act
In April 2020, the U.S. government began sending $1200 to every U.S. citizen and resident as an economic stimulus (money to help the U.S. economy).
If you filed your taxes as a U.S. resident, you may have incorrectly received this $1200. To avoid financial penalties and travel restrictions in the future, you will need to amend your taxes using a reputable tax return company, and return the $1200.
How to amend your taxes:
Any of these services are good:
https://j1united.com/application/web/tax
Do not use:
TurboTax
Free Tax USA
RT Tax
IV Tax Prep (see “special notes on IV Tax Prep” below.
How to return the money:
If the payment was a direct deposit into your bank account OR if the payment was a paper check and you deposited or cashed it:
Use Bill Pay in your online banking website, to mail a check to the address below.
Write on the check/money order made payable to “U.S. Treasury.” In the memo section write “2020EIP,” your name, and your Social Security number. For example: 2020EIP, Jane Smith, 123-45-6789
Anyone can write the check, just be sure to follow these instructions ↑
If the payment was a paper check and you have not cashed it:
Write "Void" in the endorsement section on the back of the check.
Mail the voided Treasury check immediately to the address below.
Don't staple, bend, or paper clip the check.
Include a note stating the reason for returning the check.
Austin Refund Inquiry Unit
3651 S Interregional Hwy 35
Mail Stop 6542 AUSC
Austin, TX 78741
FAQ:
How did I file my taxes incorrectly? I thought I did everything right.
The most common tax software/app that U.S. residents use is TurboTax. It is cheap and easy! Unfortunately it is also illegal for J1 students to use. J1 students need to file a form called 1040NR (which stands for non-resident), and TurboTax ONLY allows you to file the regular 1040 which is for residents.
If you filed with TurboTax, or used a tax company who filed the 1040, you accidentally filed your taxes illegally, and this is why you received the stimulus.
Are you SURE that I should not have received the $1200? Maybe I am a resident.
Simply stated, you would need be in the U.S. for two full years to even begin the process of becoming a resident. J1 Work Travel students are definitely never eligible for the $1200.
What happens if I don’t amend my taxes and return the $1200?
The U.S. government is very good at getting money it is owed, and this does not change when you are overseas. If you keep the money, you will be caught when the U.S. government processes your taxes (which could be weeks or months from now).
If they find your mistake before July 15, you will receive a bill for the $1200 plus interest and any difference in taxes from filing the incorrect form.
If they find your mistake after July 15, you will receive a bill for the $1200 plus interest and any difference in taxes from filing the incorrect form, and also fines and penalties which could be hundreds of dollars extra.
If you do not pay this bill, any of the below could happen:
Penalties will continue to build up the longer you do not pay.
You and your family will be prevented from traveling to the U.S. again in your lifetime (this might not seem like a big deal to you now, but what if you or a family member needs to travel to the U.S. in the future for school, business, medical treatment, visiting family, etc?)
If you have a U.S. bank account, the money and penalties will be taken from your account. This would also apply if you have an overseas bank account that has a branch in the U.S.
If you work for an employer that is based in the U.S., Canada, France, Denmark, Sweden, Netherlands or the UK, the U.S. government can take the money directly out of your paycheck.
The U.S. government can seize property you have in U.S., Canada, France, Denmark, Sweden, Netherlands or the UK.
If you have any financial dealings, directly or indirectly, (bank loan, mortgage) involving a bank with a branch in U.S., Canada, France, Denmark, Sweden, Netherlands or the UK, the money and penalties can be taken from your account.
Special Notes on IV Tax Prep:
Unfortunately, ERDT has learned that participants who used IV Tax Prep may be, unknowingly, victims of fraud. According to what we have been told, Ivo Krasimirov Ivanov of IV Tax Prep will file on your behalf using TurboTax. He will then keep the $1200 stimulus and any extra money refunded by using TurboTax, and will send to you the amount you would have received using Sprintax. In this case, you must:
Report identity theft online at: https://www.identitytheft.gov/ Print some confirmation from this site.
Prepare a correct tax return at Sprintax as if it is an original and mail it along with a copy of the confirmation you printed from identitytheft.gov.
If you received a check from IV Tax Prep, do not deposit it. If you have already deposited it, ensure you keep that amount on hand, in case you need to send it somewhere in the future.
Sprintax expects you will receive your tax refund from the IRS, however it may take longer than normal.