View Full Version : An important legal question

08-02-2008, 16:41:48
Am I eligible for the tax refund in the "economic stimulus package" recently passed by the Senate&House?

Here is the version which was passed:


Now, here are the things to note:

1) For all of 2007 both my wife and I were "nonresident aliens" for tax purposes due to us being exempt from the "substantial presence test" (myself under F-1 status, her under J-1 status). This exemption ran out on December 31, 2007.

2) SInce we will both spend more than 183 days in the US during 2008 as non-exempt individuals we will file taxes as resident aliens for 2008. Our resident alien status will be counted as having started on Jan. 1 2008 (our first day of presence in the US as non-exempt individuals) so we will file taxes as having been resident aliens for the whole of 2008. First off, this is an enormous help because my wife is in a radically different income tax bracket than I am (she makes ~4 times as much as me) and we can now file taxes as a married couple. Unfortunately it also means that she is now subject to FICA withholding (I am not, as I am a student).

Now, here is my interpretation:

a) As defined by the text of the legislation, my wife and I are "eligible individuals" for 2008. This means that we are entitled to the tax credit on our 2008 taxes (To be filed a year from now).

b) We were not eligible individuals for 2007, meaning that we are not eligible for the "Advance Refunds of Credit" of subsection (g).

The conclusion is that we will not get a cheque for 1200$ this year, but will be refunded 1200$ extra when we file our 2008 taxes at the beginning of 2009

Are there any aspiring lawyers who come to a different conclusion, or is my reading correct? Dyl and Lurker, I'm looking at you.

08-02-2008, 16:44:45

08-02-2008, 16:45:27

08-02-2008, 16:47:12
Damn, that's one exciting thread

08-02-2008, 16:50:49
Needlessly complicating the tax code :beer:

08-02-2008, 16:57:14

They want to confuse people into not claiming what they are owed.

08-02-2008, 17:00:17
No, they don't want unemployed tax advisors, lawyers and IT consultants :beer:

Dyl Ulenspiegel
08-02-2008, 17:01:13

08-02-2008, 17:01:51
That's the italian model :D

08-02-2008, 17:05:07
I worked in tax IT projects since 2002 exclusively. Thanks to Zins-Informations-Verordnung, Investmentmodernisierungsgesetz and Abgeltungssteuer! Not to meintion Halbeinkünfteverfahren!

Dyl Ulenspiegel
08-02-2008, 17:12:02
well, european tax laws are horrible. but american tax law is a league of its own. So I won't even venture a guess. But I think Lurker knows.

Resource Consumer
08-02-2008, 17:12:05
Poly sub-forum

Dyl Ulenspiegel
08-02-2008, 17:12:31
Originally posted by Vincent
tax IT

I'm for it!

08-02-2008, 17:15:04

08-02-2008, 17:37:16
Originally posted by KrazyHorse
"economic stimulus package"

......i.e. a cheap dildo????


08-02-2008, 17:56:23
Originally posted by Dyl Ulenspiegel
I'm for it!

I imagine this is even more a goldmine in Austria than it is in Poland...

Lurker the Second
08-02-2008, 18:21:37
I think your reading is correct KH. You were both non-resident aliens for 2007, so are ineligible for the advance credit. Once you are no longer a "nonresident alien", you are an "eligible individual" and will qualify for the credit for the 2008 tax year.

LoD should just die. :beer:

08-02-2008, 18:39:01

08-02-2008, 20:38:00
And don't forget: lawyers are liars

Dyl Ulenspiegel
08-02-2008, 20:50:30

08-02-2008, 21:38:03
Originally posted by Dyl Ulenspiegel
Lurker knows.

08-02-2008, 22:18:18
I'm reporting KH to homeland security, and will claim he's Bin Laden's barber.

09-02-2008, 05:38:08
Maybe they'll pay me 25 mil to "accidentally" slit his throat the next time I give him a shave.

Oh, wait....

09-02-2008, 09:59:37
Originally posted by Lurker the Second
LoD should just die. :beer:

I wufff you 2 :D.