American-Israeli dual citizens will be benefiting from the $2 trillion stimulus package signed by U.S. President Donald Trump on Friday.
The plan, which includes direct payments of $1,200 per person and $500 per child under age 17, will also apply to citizens and green card holders living abroad.
More than 200,000 U.S. nationals or green card holders live in Israel.
The United States is one of the few countries that require citizens to file income tax returns and provide the level of their overseas bank accounts even if they are not living in the United States. In Israel, taxation is based on residency.
However, while U.S. citizens are required to file U.S. tax returns, many living abroad do not actually pay U.S. income tax because they receive an exemption based on their tax bill in their country of residence.
The U.S. stimulus plan states that individuals who earn up to $75,000 a year, or heads of households who earn up to $112,000 a year, based on the adjusted gross income in their most recent U.S. tax return, will receive a $1,200 check.
Couples who earn up to $150,000 a year and who submit joint tax returns will receive $2,400. Parents will receive an additional $500 per child.
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Individuals who earn between $75,000 and $99,000 will receive a smaller sum.
Individuals who earn $99,000 or more, or childless couples who earn $198,000 or more, will not be receiving a payout. Likewise, families with two children and income above $218,000 will not be eligible to receive any money. Adults who are claimed as dependents also are not eligible.
To receive a payment under the stimulus plan, you must have a U.S. Social Security number. This applies to children as well. Some exceptions are being made; for example, for stateless people in the United States.
It is apparently not a requirement that one has filed a return or paid U.S. income tax in the past.
In 2017, the State Department estimated that around 9 million U.S. citizens live abroad.