Noncitizen Eligibility for the Second Round of Direct Payments to Individuals

Noncitizen Eligibility for the Second Round of Direct Payments to Individuals

INSIGHTi
Noncitizen Eligibility for the Second Round
of Direct Payments to Individuals
January 19, 2021

Introduction
The Consolidated Appropriations Act, 2021 (P.L. 116-260) was signed into law on December 27, 2020. It
includes a second round of pandemic-related direct payments to individuals—referred to in the law as
“2020 recovery rebates” and as Economic Impact Payments by the Internal Revenue Service (IRS).
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This second set of direct payments is similar to the first under the Coronavirus Aid, Relief, and Economic
Security Act (CARES Act; P.L. 116-136), as it was original y enacted, with two notable exceptions: the
payment amount and the taxpayer identification requirement for certain mixed immigration status
families, which are the focus of this Insight. For more information on these payments, see CRS Insight
IN11575.
Payment Amount
This second round of direct payments provides $600 per eligible individual and $600 per eligible child,
subject to a phase out for higher income households. Most eligible married taxpayers filing a joint tax
return can receive up to $1,200 per couple. However, this amount is reduced to $600 per married couple
for certain mixed immigration status joint filers (see below).
Taxpayer Identification Numbers (SSNs and ITINs)
Like U.S. citizens, noncitizens must have a taxpayer identification (ID) number to file their federal tax
returns or other documentation with the IRS, pay taxes, and otherwise comply with federal tax law.
For many noncitizens, their taxpayer ID is a Social Security number (SSN). SSNs are issued by the Social
Security Administration (SSA) to U.S. citizens and certain groups of noncitizens—specifical y, lawful
permanent residents (green card holders), asylees, refugees, and aliens who are authorized to work
temporarily in the United States and thus receive work-authorized SSNs. The SSA also issues non-work
SSNs to a smal share of aliens without work authorization who need an SSN to receive certain public
benefits.
Noncitizens ineligible for an SSN must use an individual taxpayer identification number (ITIN) when
filing federal taxes. Use of an ITIN does not necessarily mean an individual is unlawfully present. The
IRS and the Treasury Inspector General for Tax Administration say that a large proportion of ITIN filers
are unlawfully present aliens working in the United States.
While an individual’s immigrations status cannot be determined solely by his/her use of an SSN or ITIN,
some view it as a proxy—albeit an imperfect one—for determining legal immigration status.
Modified Taxpayer Identification Requirement for Direct Payments
To receive the direct payment, eligible taxpayers must general y provide a work-authorized SSN for
themselves and any qualifying child. Taxpayers who provide an ITIN on their tax return, as wel as aliens
with non-work SSNs, are ineligible for the payment. However, if they filed a joint return with a spouse
who filed with a work-authorized SSN, the couple can receive $600 before adding the amount of the
credit for any qualifying children.
Mixed Immigration Status Couples and Families
Mixed-status colloquial y refers to a family whose members may have different immigration statuses,
such as spouses with different immigration statuses and/or children with different statuses than their
parent(s).
The 2020 recovery rebate provisions do not reference specific immigration statuses. In this Insight,
mixed-status couple refers to married couples who file taxes jointly in which one partner uses an SSN and
the other an ITIN. In contrast to the original CARES Act, P.L. 116-260 al ows mixed-status couples who
file their taxes jointly to qualify for the payment, though at a reduced rate—starting at $600 instead of
$1,200, prior to the phase down. P.L. 116-260 also al ows mixed-status couples to receive $600 per
qualifying child.

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In the table below, mixed-status family refers to a parent or parents who file their taxes using ITINs but
whose children have SSNs (e.g., their children are U.S. citizens). As with the CARES Act, these families
are ineligible for the payment even if the children are otherwise eligible.
Table 1. Payment Amount, by Filing Status and Type of Taxpayer ID, Provided by P.L. 116-260
Payment Amount
Payment Amount
Filing Status
Type of Taxpayer ID
(no qualifying children)
(one qualifying child)
Single Filer
SSN
$600
—

ITIN
$0
—
Head of Household
SSN
—
$1,200
ITIN
—
$0
Married Joint Filer
Two SSNs
$1,200
$1,800
Two ITINs
$0
$0
One SSN and one ITINa
$600
$1,200
Married, Joint Filer, one
At least one SSNb
Armed Forces Member
$1,200
$1,800
Source: CRS presentation of provisions from P.L. 116-260, Section 272.
Notes: The payment amounts shown are the maximum amounts, prior to the phase-down for higher-income taxpayers.
a. This is the main difference (aside from the starting payment amount) from the original CARES Act. Under P.L. 116-
260, married joint filers with an SSN and an ITIN are eligible for the second round of payments, though at a smal er
amount compared to married joint filers with two SSNs.
b. Like the CARES Act, P.L. 116-260 relaxes these ID requirements for married joint filers in which at least one spouse
is in the Armed Forces.
Retroactive CARES Act Payments for Mixed-Immigration Status Families
The CARES Act payments, most of which have already been issued, equaled $1,200 per eligible
individual and $2,400 per married couple, with an additional $500 per eligible child. The payments
phased down for higher-income households. Mixed-status couples and their children were general y
ineligible for these payments. However, under P.L. 116-260, mixed-status couples are now retroactively
eligible for a reduced amount (compared to the original CARES Act): up to $1,200 per couple and $500
per eligible child, subject to phase out. ITIN-filing heads of household and married joint ITIN filers with
U.S. citizen children are stil effectively ineligible for these payments.
Impact
The Migration Policy Institute, which describes itself as a nonpartisan think tank, estimated that 1.4
mil ion U.S. citizen or legal immigrant spouses and 1.5 mil ion U.S. citizen or legal immigrant children
initial y excluded from CARES Act direct payments are retroactively eligible due to P.L. 116-260’s
modifications of the taxpayer ID requirements. They are also now eligible for the second round of
payments provided by P.L. 116-260. Children with ITIN-filing parent(s) remain ineligible.

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Author Information

Abigail F. Kolker

Analyst in Immigration Policy

Disclaimer
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