NY Times — Assoc. Press | FEB. 14, 2015
WASHINGTON (AP) – Millions of immigrants benefiting from President Barack Obama’s executive actions could get a windfall from the IRS, a reversal of fortune after years of paying taxes to help fund government programs they were banned from receiving.
Armed with new Social Security numbers, many of these immigrants who were living in the U.S. illegally will now be able to claim up to four years’ worth of tax credits designed to benefit the working poor. For big families, that’s a maximum of nearly $24,000, as long as they can document their earnings during those years. … More>
Moving right along:
Determining Alien Tax Status — (per IRS guidelines)
If you are an alien (not a U.S. citizen), you are considered a nonresident alien unless you meet one of two tests. You are a resident alien of the United States for tax purposes if you meet either the green card test or the substantial presence test for the calendar year (January 1-December 31).
Certain rules exist for determining the Residency Starting and Ending Dates for aliens.
In some cases aliens are allowed to make elections which override the green card test and the substantial presence test, as follows:
Nonresident Spouse Treated as a Resident
Closer Connection To a Foreign Country
Effect of Tax Treaties
You can be both a nonresident alien and a resident alien during the same tax year. This usually occurs in the year you arrive or depart from the United States. If so, you may elect to be treated as a Dual Status Alien for this taxable year and a Resident Alien for the next taxable year if you meet certain tests. (Refer to section “Dual-Status Aliens” – “First Year Choice” in Publication 519, U.S. Tax Guide for Aliens.)
A resident alien who is required to establish his/her U.S. residency for the purpose of claiming a tax treaty benefit with a foreign country should refer to Certification of U.S. Residency for Tax Treaty Purposes.
You will be considered a U.S. resident for tax purposes if you meet the substantial presence test for the calendar year. To meet this test, you must be physically present in the United States on at least:
31 days during the current year, and
183 days during the 3-year period that includes the current year and the 2 years immediately before that, counting:
- All the days you were present in the current year, and
- 1/3 of the days you were present in the first year before the current year, and
- 1/6 of the days you were present in the second year before the current year.
Not only can they claim tax benefits for being here, but if they owe tax in certain countries, they can seek an exemption by getting a certification from IRS.
U.S. citizens and U.S. residents sometimes need certification of U.S. residency to claim a tax treaty benefit or a reduction of VAT tax with a foreign country. Such persons should file Form 8802 with the IRS to obtain such certification of residency.
The IRS provides this residency certification on Form 6166, a letter of U.S. residency certification. Form 6166 is a computer-generated letter printed on stationary bearing the U.S. Department of Treasury letterhead.
So the agency designated as enforcement arm for Obamacare is the same one enforcing Obama’s amnesty program. Note also that alien is a correct term for a non-citizen.