COVID-19, the CARES payment and the tax deadline – all of your nonresident tax questions answered!

COVID-19, the CARES payment and the tax deadline – all of your nonresident tax questions answered!

🗓️ Q. I owe 2019 U.S. tax and can’t pay by April 15. What should I do?

Due to COVID-19, the federal filing and payment deadlines moved from April 15 to July 15, 2020.
Most states also extended to July 15, with these exceptions:

  • Hawaii: July 20

  • Idaho: June 15

  • Iowa: July 31

  • Virginia: June 1

If you need more time to pay beyond July 15, you can file a federal extension until October 15, 2020.
⚠️ The IRS may apply late-payment/late-filing penalties and interest if you miss deadlines.

📮 Q. What’s the last day to file my return?

  • Federal: July 15, 2020

  • State: generally July 15, except Idaho (June 15), Iowa (July 31), Virginia (June 1), Hawaii (July 20).

Not filing can affect future visa/green card applications and lead to fines/penalties.

💵 Q. I received a $100 bank account bonus. Is it taxable?

  • Over $600: bank reports on Form 1099-MISC as an award.

  • Under $600: you must report as other income on your return.

  • Cash-back or bonuses that require spending to receive are non-taxable/non-reportable.

🏫 Q. I was a Resident Assistant (RA) and got free on-campus housing. Do I need to file?

If housing is provided as compensation for the RA role, you have a filing requirement.

  • If paid as scholarship/grant with no services required → Form 1042-S, income code 16.

  • If services required (typical RA) → reported on Form W-2 or Form 1042-S (code 18 or code 20 for F/J students).

🦠 How coronavirus affects your U.S. tax requirements

👨‍🏫 Q. I’m an Indian nonresident scholar teaching online from India for a U.S. university. Is this U.S.-taxable?

Income is generally U.S.-sourced if the property producing the income is in the U.S., the services are performed in the U.S., or it’s a dividend equivalent.
If you are outside the U.S. teaching a class for a U.S. university, this teaching income is treated as foreign income and is not reportable/not taxable in the U.S.
Similarly, research/thesis work performed outside the U.S. with grant support is foreign income and not taxable/reportable in the U.S.
(Each situation is unique—seek professional guidance if unsure.)

💻 Q. I’m a Chinese nonresident student working from home in China for my U.S. campus job. Is the income U.S.-taxable?

If you use software/platforms on a U.S. server, the property producing the income is likely in the U.S., so your income is U.S.-taxable—the same filing/payment obligations as if you worked on campus.
Also, if the work is of a kind normally performed in the U.S., the income is U.S.-taxable.

🎓 Q. I’m a Brazilian nonresident student now studying online from Brazil with a U.S. scholarship. Is it taxable?

Scholarships/grants/awards for activities performed outside the U.S. are not U.S.-source income. Your school must determine where the activity is performed.

  • Tuition stipend: foreign income → non-reportable/non-taxable.

  • Travel/living expenses intended to be spent in the U.S.: taxable in the U.S.

  • Expenses while studying outside the U.S.: may be foreign income, non-taxable/non-reportable.
    (Confirm specifics with your school or a tax professional.)

💳 CARES Act questions

❓ Q. Can nonresident aliens get the CARES payment?

No. The CARES Act recovery rebates are for American taxpayers and resident aliens only.
To be eligible, you generally need a Social Security Number and meet income limits (e.g., $1,200 for singles under $75,000, $2,400 for married filing jointly under $150,000, plus $500 per child; payments phase out and are not taxable as they are refundable credits).

🧾 Resident vs. nonresident for CARES

You’re a resident alien if you meet either:

  • The Green Card Test, or

  • The Substantial Presence Test (e.g., 31 days in the current year and 183 days over the three-year look-back formula).

Exceptions to counting days can apply (e.g., brief transit, medical inability to leave, certain teacher/student rules for F, J, M, Q visas within limits).
If you don’t meet these tests, you’re a nonresident alien and not eligible for CARES.

📌 Notes & tips

  • Use tracked mail when filing on paper.

  • Keep copies of all documents you send.

  • If your case is complex, consult a qualified tax professional.