Did you receive an Economic Impact Payment from the USA? This is how to report it on your tax return

News, 4/14/2021

Report the Economic Impact Payment support on the Finnish tax return by the due date in May. The support is not taxable in Finland. However, it is included in your total income when the tax rate for your other earned income is calculated.

You may have received an Economic Impact Payment if you are a US citizen living in Finland.  The USA distributed Economic Impact Payment support last year on account of the coronavirus pandemic. 

How to report the Economic Impact Payment support on your tax return

Using MyTax to add information

  • Enter the support under Foreign earned income in 2020. If you had income from foreign sources but it is not pre-completed, fill in the Other income section as appropriate.
  • At Other foreign earned income, select Open specification and then Add new earned income.
  • Enter the following details:
    • Payor's name: US Government
    • Country from which income was received: United States of America
    • Income type: Other income
    • Description of other income: Economic Impact Payment
    • Public sector payor: Yes
  • Also report other relevant information, such as the amount of income you received. Convert the US dollar amount into euros by using the exchange rate of the date of payment. You can also use the average exchange rate of 2020 published by the ECB (1.1422). 

How to file on a paper form

  • Use Form 16 A Statement on foreign income (earned income)
  • Enter the amount of income into section 5.6:
    • Description of other income: Economic Impact Payment
    • Country from which income was received: United States of America
    • Payor's name: US Government
    • Public sector payor: Yes
  • Also report other relevant information, such as the amount of income you received. Convert the US dollar amount into euros by using the exchange rate of the date of payment. You can also use the average exchange rate of 2020 published by the ECB (1.1422). 

See the instructions for filing on paper

What is an Economic Impact Payment?

An Economic Impact Payment may have been paid to a US citizen living in Finland. In the United States, the Economic Impact Payment is technically an advanced refundable tax credit. From the point of view of Finnish taxation, however, the support is not a tax refund received from abroad, because the recipient is not required to have income taxable in the United States or to have paid tax to the United States. 

The Tax Administration has issued a statement on the matter (Taxation of Economic Impact Payments received from the USA by Finnish tax residents)

Pre-completed tax returns in spring 2021

Pre-completed tax returns for all individual taxpayers are now available in MyTax. Pre-completed tax returns sent by post will arrive by the end of April.

Always check your pre-completed tax return. Make additions and corrections as necessary by the due date. The due date is 4 May, 11 May or 18 May. You can check the due date on your tax return and in MyTax.