Some Irish students who travelled to the US on a J1 in 2018/19 may have received a $1,200 payment in error, and have been warned that accepting the money could compromise travel plans to America in the future.
The Irish Independent is reporting that students who have received the emergency payment – introduced by US President Donald Trump for workers in the US earning less than $75,000 a year – could encounter issues in future if they don’t return the money to the US Internal Revenue Service.
The payment, which is only meant for residents of the US, could have been deposited in the bank accounts of Irish students if they mistakenly file their end-of-year return as a resident rather than a non-resident.
Laura McHugh, a worker with Taxback.ie, told the Independent that her company is “advising the thousands of others that could be affected to check their US bank account, which may now be dormant, to see if they have received this payment”.
“Anyone who finds themselves in this situation should act to rectify it in two ways – firstly, by sending an email to the IRS to flag receipt of the payment and by refunding the money to the IRS. Secondly, these people should also amend their previous tax return to a ‘non-resident’ return in order to avoid any future repercussions.”
McHugh added: “If you have received the funds in error, and/or if this brings to light that you submitted an incorrect ‘resident’ tax return, don’t panic but do set the record straight.”
“Return the payment and make an amended tax return. The IRS receives thousands of amended returns each year and the process of filing and amended return is relatively straightforward.”
President Trump introduced the Coronavirus Aid, Relief and Economic Security (CARES) payment to help US citizens, permanent residents and residents for tax purposes.
Non-residents are not eligible for the package.
