SAN FRANCISCO, May 12, 2008
Tax Rebate Wrinkle Excludes Some Americans
Some Taxpayers Burned By Rule Aimed At Keeping Illegal Immigrants From Getting Rebates
-
Photo
Ranjeet Kumar and wife, Minanshu Jha, holds a copy of their tax forms at their home in San Jose, Calif., May 9, 2008. Over a million legal immigrants and Americans who married foreigners will be missing out, cut off by a provision meant to prevent illegal immigrants from getting their economic stimulus checks. (AP Photo/Paul Sakuma)
-
Economic Stimulus
The Payment Plan
Expecting a rebate check? Find out when your money will be on its way.
But Shelat is married to a foreigner who still hasn't completed the often years-long process that allows her to apply for a Social Security number. Her not having that number makes even him ineligible for the tax rebate checks that started going out last week because they filed jointly.
He is among an estimated hundreds of thousands of taxpayers - from legal immigrants to soldiers based abroad - who won't be getting a share of the stimulus package because of a provision aimed at preventing illegal immigrants from getting rebates.
"I would have fed this economy as well," said Shelat, an Indian chemical engineer living with his wife and two children in the Buffalo, N.Y, area. "We live within this economy, work, pay taxes, do everything by the book. Whatever the reasons for giving this economic stimulus package, they apply to us as well."
When lawmakers decided to send out the checks, ranging from $300 to $600 per adult taxpayer, plus another $300 for each child, they formulated it so only taxpayers who have Social Security numbers would qualify.
The rule unintentionally caught many taxpayers who would have qualified for the bonus, except they filed jointly with a spouse who's immigration status doesn't allow them to have a Social Security number. Among them are some of the 288,000 troops stationed overseas who may have married a foreigner.
"An American soldier who has married someone from another country and is waiting for an (immigration) petition to get approved - that soldier not getting that check is stupid," said Rep. Zoe Lofgren, D-Calif., whose district includes Silicon Valley, home of many high-tech workers who fell through the rebate cracks.
It's not clear how many members of the Armed Forces posted abroad have married foreigners. But officials in overseas bases say they can't do anything about the Internal Revenue Service's policy.
"The U.S. military doesn't have any input in IRS practices and procedures," said Air Force Major Pamela Cook, with the U.S. European Command in Stuttgart, Germany. "It's true that service members and anybody who is married to someone without a Social Security number is affected. But it's not in our lane to talk."
Quote
There are also an estimated 1 million legal residents - immigrants with green cards - who are waiting for their spouses' paperwork to be processed, according to Paul Donnelly of Reform the Rebate, a group trying to push Congress the change the rule. The IRS doesn't keep numbers of how many of that group are cut out of the rebate because they filed jointly.I know they want to exclude illegal immigrants — but I'm not illegal, I've done exactly what I was supposed to do.
Ranjeet Kumar, Silicon Valley software engineerAnd many of the 600,000 to 800,000 highly skilled immigrants on work visas in the U.S., like Shelat, have found themselves in the same position, having married a foreigner.
"My friends, my co-workers, everyone is getting this, but not me," said Ranjeet Kumar, a software engineer who has been working in Silicon Valley for eight years.
Kumar's wife is in the U.S. legally but her status still doesn't allow her to work or apply for a Social Security number. The couple filed taxes jointly but won't qualify for the $1,200 rebate other eligible couples would get.
"I know they want to exclude illegal immigrants - but I'm not illegal, I've done exactly what I was supposed to do," Kumar said.
Members of the Federation for American Immigration Reform lobbied against a version of the bill that didn't require a Social Security number for the rebate, worried about the prospect of illegal immigrants receiving checks. Spokesman Ira Mehlman said the exclusion of legal immigrants and Americans married to noncitizens was an unintended consequence.
"If you're serving abroad and haven't been able to file the paperwork, they should make an exception," he said. "If one spouse is a citizen, is here legally and is filing, they should probably be entitled."
Many of the couples snagged by this provision weren't aware that filing taxes using the foreign spouse's IRS-issued Taxpayer Identification Number instead of a Social Security number would cut them out. On April 14, the day before the tax deadline, the IRS clarified the situation on its Web site.
"They can file separately, though that may not necessarily be to their benefit," said Eric Smith, an IRS spokesman.
Tax advisers said even if these couples had known, frequently the financial benefits of filing jointly outweigh the maximum of $600 that the spouse with the Social Security number could get by filing separately.
But many of these couples feel they shouldn't have to choose since they've been working legally and paying taxes.
Sheila Reed, who works at Command Navy Region Europe in Naples, Italy, said she filed taxes together with her husband, who still uses the IRS Taxpayer Identification Number.
"I don't feel this is fair because I pay taxes like any other U.S. citizen," she told Stars and Stripes, a newspaper published for the U.S. military and other Department of Defense personnel. "It's not right. I have three kids."
© MMVIII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
- 1
- 2
- next
See all 53 CommentsIt''s a d*mn Shame.
The ones we should blame are the greedy corporations who give our jobs to foreigners. They ship all the jobs they can overseas and give what''s left to foreigners.
If all the jobs that went to China over the last ten years had gone to Mexico, maybe there wouldn''t be an Illegal immigration problem!
Wake up America! It''s not the fault of the foreigners, it''s the fault of our own Corporations and Politicians who have sold us out.
Personally, I don''t even WANT it, no matter HOW much I NEED it!!
This is not the first time we have gotten a rebate. Maybe it will come again. When it does perhaps this couple will get the full thing. It is unfortunate for them but, that is part of the game when you marry outside of your country. I know in OTHER countries if you want to marry and stay in that country there is a very lengthy waiting period in which you may or may not be granted permission ever.
Posted by whatsup49 at 09:52 AM :
The difference is, our ancestors came here legally, learned english, became citizens, and WORKED to provide for themselves and their families. There were no food stamps, no free medical assistance and no HUD--WE haven''t forgotten, our government hasn''t forgotten either, they are looking for "legal" slave labor for their corporate friends.
As an immigrant, having the opportunity to live and work in America is like getting a free sundae. Not getting a stimulus check is like complaining that the free sundae is missing the cherry on top.
rebates now, want 90% tax on everyone who earns more than you? Guess what, these things have long term costs associated with them regardless of what spin you give them.
Why don''t we just have a higher tax bracket for people not born in America? And we can also give them separate water fountains to drink from that are labelled foreigner.
Do you really think computer science Ph.D.s will always dream of moving to the US when they can get 2x salaries in Switzerland? Let them go? How much poorer are you willing to be because we don''t have competitive high tech industries in this country?
"The difference is, our ancestors came here legally, learned english, became citizens, and WORKED to provide for themselves and their families. There were no food stamps, no free medical assistance and no HUD--WE haven''''t forgotten, our government hasn''''t forgotten either, they are looking for "legal" slave labor for their corporate friends."
I don''t think many of the high tech immigrants in silicon valley are living on food stamps..... I think many of them are working very hard, possibly harder than you....
Posted by davidlar2 at 02:05 PM : May 12, 2008
And then, again, probably not! Specifically in Florida!
The people you are alluding to, most likely, have their "own" social security numbers---read the article-PLUS I was responding to another poster trying to entwine "legal" immigration with "illegal" immigration---nothing similar to what "was" and what "is"!
Try reading with both eyes open---the problem IS NOT with immigrants---it''s with ILLEGAL immigrants!!
Posted by tomanyt at 01:42
No some came through PA-and some came through Calif.
-but MOST immigrants back then came here "LEGALLY" more so than today, my grandparents came here LEGALLY early 1900''s and I was fortunate enough to grow up looking at the pride on their faces for being Americans!
so some lame foreigner doesn''t get to remodel his bathroom. boo-hoo! maybe you can write nice letter to india and ask them to make up this amount. thank you--don''t come again!
Second, most of the posts are negative to all immigrants, not just illegal immigrants.
Posted by cpaide at 02:42
Right!! And, name one country where we can sneak into, get a job, not speak their language, get free medical assistance, food stamps and subsidized housing!!
Name just one other country besides the good ole US of A!
The point is that things in America are supposed to be fair and this is not. Things in America have become too ad hoc, nothing is thought through by our politicians, and that is the big problem! This is one issue, but it is a general problem in our society. Not every society on the planet is as dumbed-down as ours and things are getting worse, not better.
Posted by davidlar2 at 02:50 PM : May 12, 2008
The wife has not, as yet gotten a Social Security card, what''s it like in other countries david--easier?
Not from what I understand, and contrary to what you think--the biggest problem Americans have is with the "illegal" part of immigration!
Posted by davidlar2 at 02:58 PM : May 12, 20
David-we are paying a high price because most of OUR hitech jobs have been "outsourced" right down to the production jobs.
I''ll bet most of the hitech jobs are in China or Japan.
Very little is made in this country anymore, because it cheaper for, say Nike to pay the Vietnamese $59.00 a month which is exactly what they have been getting paid---and charge an average of $100 for a pair of sneakers.
The only way Americans will win the "war on jobs" is not to buy foreign made products--and that "ain''t" gonna happen.
Americans see it, they want it and they buy it! Then complain.
There is no evidence from any anywhere that countries get rich by not trading with other countries, especially when having a cost of living that is higher than other countries.
The problem in America is that salaries are disconnected from their value in the global marketplace and from the value they create. The leftist value of equal wages for all has led unskilled labor to be overpaid in this country. You can pretend that that has nothing to do with outsourcing, but it does. Its great to think that politicians can fairly decide wages and regulate economies, but in reality we need to stop pretending that the laws of economics don''t apply to us and stop divorcing ourselves from the reality of the global economy. Protectionism will not solve the problems of lack of competitiveness.
Posted by davidlar2
the problem is that you''re NOT paying the price for employees that meet the needs of the US economy. the solution is trivial: you need to pay more money to get American applicants (i.e. those with real PhDs in science). otherwise, you have to make the best of it, paying sub-standard wages to foreigners with sub-standard degrees and expertise (and english skills).
The point is that things in America are supposed to be fair and this is not. Things in America have become too ad hoc, nothing is thought through by our politicians, and that is the big problem! This is one issue, but it is a general problem in our society. Not every society on the planet is as dumbed-down as ours and things are getting worse, not better.
Posted by davidlar2
No actually this is fair, you have a social security number and you pay some small amount of tax (or virtually nothing in some cases) you get a check, no social security number no check, period the end.
Name just one other country besides the good ole US of A!
You know the number of American students who work their way around Europe every year? You bet they get free medical if they get injured - food stamps, no, but pretty much any pub in England will hire them without a thought - some do even give them a room while they work. It''s good for business - people like the accent!!!
Screw you!
Posted by whatsup49
This issue is not about ethic origin, dumb*butt. This is about american born people who were here all their lives and had to pay social security, local, state, federal, and sales taxes their entire life. These immigrants live here a couple years and want; marry an American for the green card expect "free" money. NO!
Posted by collegedudeu
Yes, but his wife is not a legal citizen yet and she has no social security number. Therefore no rebate. No number, no rebate. Simple as that. I personally don''t think those $300 checks that the Democrats slipped in should be going out to people who barely paid or paid virtually no taxes. I work 60-70 hours per week at two jobs, and sometimes three. I paid taxes on every cent I earned. I paid in more than double, triple, or quadruple than some people getting back $300, so tell me, how exactly is that fair? Look no system is perfect, the congress set up rules to keep people who are not yet American citizens from getting rebate checks. Nothing wrong with that. They did not anticipate this situation, well, thats life. If the best CBS could do was dig up a couple who won''t be able to remodel their bathroom, my heart is not exactly breaking.
I did not get the rebate due to my Mexican wife''s ITIN.
Here is the painfull part. I do not mind the IRS not giving my wife or people with the ITIN the rebate.
But the IRS made my 2 US born children and myself unable to have the rebate. So ok if I did not get $1800 and they delete her $600 portion. But how come when everything I done is legal they deleted our US born and raised family from the entire rebate package? Don''t pay it on the ITIN''s but how come stop payment on the entire family rebate jest because someone in the family has a ITIN? That is where the unfairness comes into the system.
An ITIN on the 2007 tax form cancels any rebate for the entire family. Not just for the person who does not have a true social sec number.
- 1
- 2
- next
See all 53 Comments