Taxation of US stimulus payment in Ireland

Waver

Frequent Poster
Messages
61
I am a dual citizen Irish/US who has lived in Ireland most of my life.
I always file a US tax return but have never had to pay tax there.
I am at home with the children so no earned income and only a very small bit of interest.
I got a stimulus cheque from the US government in the post.
Before I spend it all will I have to pay tax on this in Ireland?
 

Slim

Frequent Poster
Messages
2,288
I am a dual citizen Irish/US who has lived in Ireland most of my life.
I always file a US tax return but have never had to pay tax there.
I am at home with the children so no earned income and only a very small bit of interest.
I got a stimulus cheque from the US government in the post.
Before I spend it all will I have to pay tax on this in Ireland?
According to the Irish Independent yesterday, US taxpayers who have incorrectly filled in their tax returns as 'US resident' may have been paid the stimulus payment in error. You may have to refund the payment to the US government.
 

lemon1984

Registered User
Messages
25
All US Citizens who filed a return in 2019/2018 are entitled to it regardless of residence. Same way you have to file tax every year being one of the downsides of being a US citizen, you get the benefits too. The incorrect reporting of resident part is only for the likes of J1 who arent even citizens.


As for tax here...I don't know sorry. Technically its considered a tax credit. Its definitely not income because they stated this and you don't have to report it on your US return next year.
 
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lughildanach

Registered User
Messages
23
If you are tax resident in Ireland, you are taxed here on your worldwide income, minus any credit you are entitled for taxation paid elsewhere. Whether something is considered to be income by the US authorities would not necessarily mean that Revenue would take the same view. Irish and Foreign Social Welfare payments are taxable unless specifically exempted. For example, foreign old age pensions are a regular source of underpayment of tax. It may be wise to clarify with Revenue, unless someone can give you a definitive answer to confirm the basis on which it is not taxable.
 

SBarrett

Frequent Poster
Messages
3,340
Out of curiosity, how do you cash a cheque from Uncle Sam?
In a bank


not being smart, my US based auntie sends me a cheque for the kids at Christmas. I've always cashed it in the bank. They lodge the money to you account immediately but say that it will take a number of weeks to clear and the money will be taken back if it bounces.
 
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