Do Immigrants Get Second COVID-19 Stilulus Checks?

40 million people have lost their jobs in the U.S. due to the coronavirus pandemic. This number includes about 117 000 H1B visa holders. The first attempt of the government to assist those who lost their jobs was the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Under the CARES Act, several foreign workers on work visas such as the H1B visa received stimulus checks from the Internal Revenue Service (IRS). Even though it did assist immigrants and visa holders, there were still many limitations. 

The rising unemployment encouraged the House of Representatives to pass a further act called the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act. 

What is the HEROES Act?

The HEROES Act is an Act which the U.S. House of Representatives recently passed, which provides for $3 trillion to be made available as financial support during the COVID-19 pandemic. Under the HEROES Act, the IRS will issue a second round of stimulus checks to eligible individuals who became unemployed due to the pandemic. 

The HEROES Act doesn’t only provide for U.S. citizens and lawful permanent residents to receive stimulus checks. It also covers non-immigrant visa holders working in the U.S. on a temporary work visa, such as H1B visa holders. 

In short, the HEROES Act provides for a minimum of $1,200 to be distributed to each qualifying individual or $2,400 for joint tax filers. 

What Does the HEROES Act Cover? 

As with the CARES Act, the HEROES Act is not a “free for all”. You can still only claim in very specific circumstances and for specific things. 

The HEROES Act covers the following: 

• Financial support for rent – this will be for specifically eligible candidates. If you are unable to pay your rent, your rent and utilities will be covered. The HEROES Act also extends the ban on evictions for non-payment of rent.
• Financial support for mortgage payments – you could be eligible for forbearance of up to a year. 
• The cost of COVID-19 testing
• Stimulus checks for families – we look at this in more detail below. The checks now include payment for adult dependents.  
• Additional income (or hazard pay) for essential workers – this payment is for workers who have had to return to work during COVID-19 and who generally work on the frontline. It includes increased pay until the worker receives an increased total of $10,000 if their usual earnings are less than $200,000 a year. Or, if their ordinary pay is more than $200,000 a year, it provides increased pay up to a total of $5000.
• Funds to support local businesses and state governments – the aid for local governments is so they can pay “vital workers like first responders, health workers, and teachers” who could lose their jobs due to budget shortfalls.

When it comes to family stimulus checks, the HEROES Act provides the following:

• $1,200 for each individual tax filer
• $2,400 for married couples who file taxes jointly
• $1,200 per minor child or other qualified dependents (including adult dependents like college students). You can claim this for up to three children or dependents per family. 

Do Immigrants and Visa Holders Qualify for Stimulus Checks?

As with the CARES Act, immigrants and non-immigrant visa holders qualify for stimulus checks under the HEROES Act. But you will only be eligible if you fall in a certain income bracket. 

If you are an individual taxpayer and earn under $75,000, you will be eligible for a second stimulus check of $1,200. Couples who file their taxes jointly will qualify for the full $2,400 stimulus check if they earn a joint income of less than $150,000.

If you earn above these limits, the stimulus check payments will be reduced and phased out. If you earn above $98,000 as a single taxpayer, the stimulus check will be phased out completely (and you will not be eligible for any payment). Similarly, the stimulus check is phased out entirely for joint filers earning more than $199,000. 

Which Immigrants Qualify?

To qualify for a second stimulus check payment as an immigrant, you also have to be a resident alien who meets the substantial presence test.

For tax purposes, you will be a resident alien if you either have a green card or if you meet the substantial presence test. So, if you are a visa holder (and not a green card holder who is automatically a resident alien), you must meet the substantial presence test requirements below to qualify.

The substantial presence test requires the following:

• You must have lived in the U.S. for at least 31 days in the 2020 calendar year, and
• You must have lived in the U.S. for at least 183 days during the previous 3-year period (which includes 2020).

The total of 183 days must cover the following: 

• All the days you were in the U.S. in 2020
• 1/3 of the days you were present in 2019
• 1/6 of the days you were present in 2018.

Finally, for you, as an immigrant or visa holder to qualify for stimulus checks under the HEROES Act, you have to have a social security number. 

Under the CARES Act, the fact that one member of the family did not have a social security number (for example, one of the spouses filing jointly) prevented the entire family from receiving stimulus checks. The good news is under the HEROES Act, only the individual who doesn’t have a social security number will be prevented from receiving the stimulus check. Everyone else will still receive their allocated amount.

Which Immigrants Do Not Qualify?

You will not qualify for a stimulus check under the HEROES Act in any of the following circumstances:

• You do not have a social security number
• You earn more than $98 000 as an individual filer, or your joint income is more than $199,000 if you file your taxes jointly, or
• You don’t meet the substantial presence test, as we explained above. 

Stimulus Checks and H1B Visa Holders 

Since H1B visa holders can get a social security number, you will qualify for a second stimulus check under the HEROES Act if you are an H1B visa holder, and you have a social security number. If you don’t, you, unfortunately, will not qualify.

H1B visa holders also have to meet the other eligibility criteria, such as earning in the income bracket and meeting the substantial presence test. 

Conclusion

Even though the HEROES Act isn’t perfect, it definitely provides greater support to immigrants and visa holders who need financial assistance. If you are a visa holder who has been working and filing taxes in the U.S. for a while, now consider the requirements we set out above. A stimulus check under the HEROES Act may be just what you need to get back on your feet. 

Frank Gogol

I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.

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