Expats from the US are obligated to file their tax returns and therefore have the chance to claim stimulus payments from the US Government. Taking into account stimulus checks and the Child Tax Credit, $7,200 (currently around £5,791.97) is up for grabs.
Between 2020 and 2021, the Internal Revenue Service (IRS) issued three stimulus checks to help people through the pandemic and Americans still have the opportunity to pick up these sums of money.
Through the Federal Government’s Covid Stimulus programme, taxpayers are in line for a favourable tax refund.
This sum of money comes to $3,200 (£2,574.27) for adults and $2,500 (£2,011.15) for dependents.
However, expats are at risk of not picking up this money due to a lack of knowledge of who is eligible for it.
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An estimated 160,000 American expats are currently residing in the UK, according to statista.com.
Anyone earning less than $75,000 (£60,334.50) can get this financial support as a refund on their 2020 and 2021 US tax returns.
Expats who have not filed their tax returns for 2020 and 2021 can still do so within three years’ time of the original filing deadline which was April 15, 2021.
Alongside the Government’s stimulus package, taxpayers can also claim the Child Tax Credit (CTC) to help struggling families during the economic downturn.
This is a refundable credit that lessens a household’s tax liability by a certain amount per qualifying child.
US families living abroad may not be aware they are entitled to a $1,500 (£1,206.69) CTC refund for every child they have without having to worry about paying taxes.
All children need to have their own Social Security number and be under the age of 17 to qualify for this support.
Both single and joint filers will be eligible if their income is between £15,000 to £180,000.
Even if someone has lived abroad for decades, expats from the US are still obligated to file their tax returns.
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One woman was able to claim thousands of dollars worth of stimulus support and Child Tax Credit to help her family.
Katie Greene, a US citizen living in England, broke down what she was entitled to without originally knowing she was.
She explained: “I have lived in the UK for nearly 20 years and didn’t realise that I still had to pay US taxes.”
“Despite not having filled in a tax return form in years, I was still able to claim both the Covid Stimulus and, even better, the Child Tax Credit – neither of which I knew I would be eligible for.
“Being aware of my obligations and the potential tax refunds, I was able to claim the stimulus payments correctly and do what was best for me and my family.”
Rose-ann De Villa, CPA EA and tax manager of Expat Tax Online shared why expats in the UK should take advantage of this financial aid.
The tax expert added: “US citizens here in the UK need to be aware of the confusing deadlines.
“Getting the return started early allows you to identify potential rebate opportunities to claim the benefits and reduce your tax liability.
“For Permanent Resident Card holders, even if their Green Card is expired, they can still be eligible for stimulus as the document only expires in terms of immigration purposes, not when it comes to US taxes.”
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