Collecting the Economic Impact Payment - 2020 CARES Act USA

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Did anyone else get a bullshit letter today about the payment in the mail? 
 

“America will triumph yet again — and rise to new heights of greatness”

 

yeah. Is that what you’re calling this?

 

 

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I got that letter a couple of weeks ago.  It went straight into the shredder.  What a waste of taxpayer money to send that.

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12 minutes ago, willowhands said:

"America will triumph yet again — and rise to new heights of greatness”

Hmm, leave out the i and h and what do you read 🤔?

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got a check today (whole family amount) went to a local Deutsche Bank, same thing @ndpjs said above, they changed their policy.

Came back, just remembered BOA app can capture an image of the check to  deposit, done!

 

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So, can someone please divulge the name of the magic, German bank that will cash one of these checks? My wife got hers a few days ago and was told NEIN by Postbank.

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Looks like she doesn't have a US bank account. In that case, she could send it over there for someone to deposit into their account and then they can Paypal her the money in Euros. That is what I would do.

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So between the CARES stimulus and the child tax credit, I may well end up with a pretty substantial negative income tax from the USA for 2020, it makes up for the mountains of tax filings and FBARs over the last ten years. Does anyone know whether this would represent taxable income in Germany? I guess that welfare payments are exempted by the Tax Treaty, but I have no idea what this would really qualify as. I suppose there is no way for the German Finanzämter to learn about it, but I'd like to have a decent legal argument if possible.

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1 hour ago, mainzigartig said:

Does anyone know whether this would represent taxable income in Germany? I guess that welfare payments are exempted by the Tax Treaty, but I have no idea what this would really qualify as. I suppose there is no way for the German Finanzämter to learn about it, but I'd like to have a decent legal argument if possible.

 

The child tax credit and the additional (refundable) child tax credit as well as the EIP are categorizable as "tax credits" granted under US tax law with the latter two falling into the category of "refundable tax credits".

 

As such they should be non-events as far as the German fisc is concerned.

 

However, if a Finanzamt were to get frisky and try to tax any of these, the German taxpayer might find himself in a bind.  The concept of a "refundable tax credit" is a recent invention of American politicians anxious to redistribute wealth but without calling it welfare.  Tax credits good.  Welfare bad.

 

A credit is usually awarded by the tax law in recognition of an actual expenditure (real or presumed) whether it be for foreign taxes paid, child care provided, etc.

 

The EIP, however, is payable to all Americans who quality by the mere act of being alive and earning less than $200K a year - whether or not they even have a tax return filing obligation.

 

Expensive as living might be, it is not ordinarily viewed as something compensable.  (There have, however, been lawsuits for "wrongful life", e.g. when the condom proved inadequate for the task, etc.  But I digress.)

 

The DBA-USA offers no help since it makes no mention of "refundable credits".  If the FA were to succeed in characterizing them as income payable under "social security legislation", Germany would have the exclusive right to tax.  If characterizing them as "other", Germany would have the exclusive right to tax under Art. 21.

 

So . . .

 

Best not talk too loudly about the EIP you received.

 

 

 

 

 

 

 

 

 

 

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Hello to all

I received my Eonomic Impact Check in September.  I receive a pension from the Social Security Department.  According to all the Info I have found, the check should have been processed through the SSA and deposited to my PostBank Account.  It wasn't.  The Social Security Office in Frankfurt says they can do nothing because the check is from the Trasury Department. I can't use the Non-Filer Tool because i receive a Pension.  

I have found a Bank that will process the checke for a fee of 40 Euros but  make it a requirement that i close my PostBank account and open an account with the Bank that will process the check.  I sent a registered letter to the IRS in September and have had no response whatsoever.

The sending of checks to Americans living in Germany was not very sensible , especially since I have found only one German Bank willing to accept and process the check and this bank requires that i have no other Bank Account in Germany.

 

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I have an idea and I may be able to help you out. I need you to answer 2 questions first. 1)  Do you have a bank account in the U.S.? I'm assuming that you don't but just want to make sure because then you could just endorse it For Deposit Only and  mail it to them. 2) Do you have Paypal?

 

I need to ask my bank if I can deposit a 3rd party check. I'll do that when I hear back from you.

 

Oh yea, you would have to trust me for this to work and there will be no charges. :D

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2 hours ago, Lorbear said:

According to all the Info I have found, the check should have been processed through the SSA and deposited to my PostBank Account. 

 

I would be curious to know where you found that info since it is news to me.

 

After qualified persons who filed a tax return for the later of 2018 or 2019  received their checks, next in line were Soc.Sec. recipients. The IRS relied on information from the SSA to identify these persons and their addresses but at no time did the SSA assume any responsibility or control over the funds. The IRS as you may know may not automatically deposit refunds to any account other than a US account.

 

I suspect this limited involvement of the SSA may have led to your misunderstanding.

 

I'm not sure what you wrote in your letter to the IRS or to whom you addressed it but the likelyhood of getting an answer from a carbon-based unit at the IRS is about the same as Donald Trump engaging in reflection and self-criticism.


Fraufruit's idea of a 3d party is a good one but requires a US bank that is willing to accept a 3d party endorsement.  Many will not do so as a matter of policy because of the risks to the bank.  But if Fraufruit's bank says no, find a friend or relative in the US and ask if their bank will allow it.

 

But here's the catch:  if you have no US dollar denominated bank account and the person to whom you endorse the check has no EURO account, he or she will have to wire you the funds back internationally so there will be transmission and conversion costs.  Those costs may be worse than the (surprisingly low) €40 you were quoted.

 

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On 27/09/2020, 11:13:41, fraufruit said:

Looks like she doesn't have a US bank account. In that case, she could send it over there for someone to deposit into their account and then they can Paypal her the money in Euros. That is what I would do.

 

15 minutes ago, fraufruit said:

I have transferred Euros to people over here from my U.S. paypal account with no great charges.

 

No visible charges. They're hidden in the awful exchange rate which PayPal give you. ;)

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9 minutes ago, fraufruit said:

So what is your big, fat, hairy, better idea that would cost less than the €40 she has mentioned?

I'm not sure why you need a big, fat, hairy idea. :unsure: 

What you suggested is fine, if the cheque can be deposited into an account in the US. I just wouldn't use PayPal to send the money. There are other services that will give you a better exchange rate. Just an idea to save a bit of money and not gift it to PayPal which just eats money. ;)

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3 hours ago, lunaCH said:

 

No visible charges. They're hidden in the awful exchange rate which PayPal give you. ;)

 

I am now an official translator of LunaCHsmuglish.  

 

"You might like to look into using an alternative way of transferring money other than Paypal.  Transferwise for example offer a fast and secure service with much lower fees and exchange rates."

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8 hours ago, snowingagain said:

I am now an official translator of LunaCHsmuglish.

Can you explain why you feel the need to bully? 

You could have just suggested Transferwise. 

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22 hours ago, Lorbear said:

Hello to all

I received my Eonomic Impact Check in September.  I receive a pension from the Social Security Department.  According to all the Info I have found, the check should have been processed through the SSA and deposited to my PostBank Account.  It wasn't.  The Social Security Office in Frankfurt says they can do nothing because the check is from the Trasury Department. I can't use the Non-Filer Tool because i receive a Pension.  

I have found a Bank that will process the checke for a fee of 40 Euros but  make it a requirement that i close my PostBank account and open an account with the Bank that will process the check.  I sent a registered letter to the IRS in September and have had no response whatsoever.

The sending of checks to Americans living in Germany was not very sensible , especially since I have found only one German Bank willing to accept and process the check and this bank requires that i have no other Bank Account in Germany.

 

I know nobody likes Deutsche Bank, which is fully understandable, but they have been able to deposit checks for me in CAD.  For a fee, of course, which I think was around 12€ or 15€. Maybe it's worth asking if they also do USD.

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