U.S. EXPAT TAX GUIDE – BRAZIL
Can US expats in Brazil get COVID-19 stimulus payments in 2024?
Yes, if you’re a US citizen living in Brazil, you may still be eligible for the COVID-19 stimulus payments.
Many people living abroad mistakenly think they can’t claim these payments, but you can if you meet the criteria.
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What do you need to qualify for the stimulus payments?
- US Citizen or Resident Alien: You need to have a valid Social Security Number (SSN) issued before April 18, 2022. This applies even if you live outside the US.
- Income Requirements: Your Adjusted Gross Income (AGI) must fall below certain limits. For example, individuals with an AGI up to US$75,000 (or US$150,000 for married couples filing jointly) were eligible for the full payment in the first round.
- File a Tax Return: You must have filed a US tax return for the relevant year, typically 2019 or 2020, to be eligible.
- Not a Dependent: You cannot be claimed as a dependent on someone else’s tax return.
How can US expats in Brazil claim their stimulus payments?
To claim the stimulus payments, you need to file a US tax return. You do this by reporting the payment as a tax credit on your return.
If you want to claim the third stimulus payment, which was US$1,400 per adult and per dependent, make sure to file by the deadline in April 2025.
How much can you earn to get the US$1,400 stimulus payment?
To receive the US$1,400 stimulus payment, your Adjusted Gross Income (AGI) must be below US$75,000 if you are filing as an individual.
If your AGI was under US$75,000 in 2021, you could qualify for the full payment.
Can deductions like FEIE help you qualify for the stimulus?
Yes, deductions such as the standard deduction, Foreign Earned Income Exclusion (FEIE), and Foreign Housing Exclusion (FHE) can help reduce your AGI, making it easier to qualify for the stimulus payments.
For instance, if you are a US citizen living in Brazil with a gross income of US$140,000 in 2020, you wouldn’t normally qualify due to the high AGI. However, if you use the FEIE, you could exclude up to US$107,600 of your foreign income in 2020 (increased to US$126,500 in 2024). This would reduce your AGI to US$32,400, making you eligible for the full payment.
Why have some US expats in Brazil missed their stimulus payments?
Many US expats haven’t claimed their stimulus payments because they didn’t know they needed to file a tax return, or they assumed they weren’t eligible since they live abroad.
This has led to many people missing out on the money they could have received. If this happened to you, you can still claim your payment by filing a tax return before the deadline. Remember, it’s money you’re entitled to, so it’s worth pursuing.
How can you check if you received your stimulus payments?
Even though the IRS “Get My Payment” tool is no longer available, you can still check whether you received your payments by reviewing your tax returns or your IRS account.
- Look at Your Tax Returns: Check your 2020 and 2021 tax returns to see if you claimed the Recovery Rebate Credit. If you didn’t receive the payments, this credit would have increased your refund or reduced your tax bill.
- Log In to Your IRS Account: You can also log in to your IRS account to view your tax transcripts. These transcripts will show any payments made to you, including stimulus payments. If you don’t have an IRS account, you can create one online.
- Request a Payment Trace: If you believe a payment was issued but never received, you can request a payment trace by submitting Form 3911, “Taxpayer Statement Regarding Refund.”
Will government benefits impact your stimulus payments?
No, receiving government benefits like Social Security or unemployment insurance will not impact your eligibility for stimulus payments.
The stimulus payments are considered a tax credit, not income, which means they won’t be counted as taxable income or affect your eligibility for most government programs.
For example, if you receive unemployment benefits, your stimulus payments won’t reduce your unemployment assistance. Similarly, if you’re on Social Security or another benefit program, the stimulus payments won’t count against the income limits that determine your eligibility.
Does interest earned on stimulus payments affect government benefits?
The stimulus payments themselves won’t affect your benefits, but any interest earned on the money could count as income. If you’re concerned about how receiving the payments might affect your benefits, it might be a good idea to speak with a tax professional or financial advisor.
Can you claim your stimulus payments if you owe back taxes?
Yes, you can still claim your stimulus payments even if you owe back taxes. The IRS did not use the stimulus payments to cover federal tax debt, meaning you should still get the full amount of any payments you qualify for, even if you have unpaid taxes.
What if you’re married and filing a joint return?
If you’re married and filing jointly, both you and your spouse must meet the eligibility requirements to receive the full payment.
If one spouse doesn’t qualify (for example, they do not have a Social Security Number), it might reduce the amount you receive. However, the eligible spouse can still receive their share of the payment.
What if the IRS says the payment was sent, but you didn’t receive it?
If the IRS says they sent your payment but you never received it, you can request a payment trace.
To do this, submit Form 3911 to the IRS, which helps them determine if the payment was cashed or lost. If it wasn’t cashed, they can reissue the payment.
Why partner with a specialist Expat accountant?
Living outside of the US can make your tax filing requirements complicated. To ensure you pay the minimum amount of taxes, it’s critical to work with an accountant who understands every aspect and avenue for reducing your tax liability. We have a dedicated team of tax accountants who work exclusively with US expats earning and investing in Germany. Partnering with a specialist expat accountant can help you navigate complex tax regulations and optimize your tax situation.
