Can I amend my tax returns to remove a dependent so they can collect a stimulus check? Regardless of the reason can I amend my returns and remove a dependant?

[NCperson]

if that dependent CAN BE claimed by someone else, then they are not eligible in any event.

the issue is not WHETHER they are claimed it's CAN THEY BE claimed.  

why did you claim this person previously and don't want to now?

[katydidit64]

They lived with me last year - no longer live with me and need that income - If I amend and remove them as a dependant will they receive stimulus money?

[NCperson]

@katydidit64 

let's begin with the basics.  You must pass all 4 of these tests to be able to claim your parents in the first place 

1. The person either (a) must be related to you or (b) must live with you all year as a member of your household. (this one is a pass because it's a relative)
2. The person's gross taxable income for the year must be less than $4,200 in 2019. This excludes social security benefits.
3. You must provide more than half of the person's total financial support for the year. Social security must be included as 'support'.  (financial support means fair share of rent, food, clothing, utilities, transportation, medical costs, insurance, etc.)
4. The person must be a U.S. citizen, U.S. resident alien, U.S. national, or a resident of Canada or Mexico.

if you FAILS any one of these tests, you can NOT claim your parents. 

if you FAILS any one of these tests you should not be claiming your parents to begin with.  Thus, your parents are eligible for the stimulus.

if you PASSES all these tests you CAN claim her parents.  Again, the IRS doesn't care if you claim them or not.  

But here is the issue... on your parents' tax return, they are asked CAN they be claimed by someone else.  And they CAN be - that answer doesn't change whether or not you claim them.  The question on your parent's tax return is NOT "Were you claimed"; it's CAN you be claimed  - see the difference? 

so if you  a) CAN claim your parents, b) and your parents fails to check the box that they CAN be claimed and c) they get the stimulus as a result, it would be tax fraud! 

but if you CAN't claim your parents, they are eligible for the stimulus.  

does that help? 

based on that, post back on whether they CAN or CAN NOT be claimed.  If they CAN NOT, I will explain what your options are for next steps. 

[katydidit64]

I should not have claimed..so what now?

[NCperson]

@katydidit64 

1) you can amend your tax return to remove them as dependents.  Do note that you probably received $500 tax credits for each of them that would have to be paid back.  it'll take 16 weeks at minimum for the amended return to be processed.

2) your parents should amend their tax return so that it notes that they can NOT be a dependent of anyone else's return.  Again this should take 16 weeks at a minimum to process.  There is no IRS guidance whether the stimulus will be paid out immediately after their amendment processes HOWEVER (and this is worst case)

• The stimulus payments are really based on their 2020 tax return (income, dependents, etc)  .
• The IRS is using either 2018 or 2019 – whatever is available  - to ESTIMATE that payment
• When they file next year there will be a “settle up” section on the tax return. 
• if they are due more stimulus (and this would include where they didn't receive anything now),  they  will receive it through the 2020 tax filing as an additional refund
• If they  received too much stimulus (not the issue here), by law , you are not required to return it

does that help?

[katydidit64]

Yes, thank you for your assistance.  Sounds like it would be easier to take the loss by paying them out of pocket than to do the amendment. Hopefully, the economy returns, and further stimulus checks will not be required.  That could run into a bunch of $$. With this information and thoughts, its time to decide whether to amend or not..

[jagamarza]

Now that it appears there is a second stimulus check, this is a pertinent consideration again. While I claimed my daughter in 2019 as a college student, she will be married in 2020 and filing jointly. 

If I am reading this correctly, when she does her 2020 taxes in spring of 2021, she will actually qualify for the two 2020 stimulus checks (presuming the one being discussed for August happens). 

Is that accurate? 

I am considering amending the 2019 taxes to not claim her, but if her married status in 2020 will rectify it that does not seem necessary. I did pay her $1200 out of pocket in the spring as I felt she should have qualified. She is a poor, working college kid. I was sad to see such adults excluded and we were never going to claim her in 2020 anyway.  It sounds like amending 2019 wouldn't make sense of a 2020 reconciliation will happen anyway. Am I understanding correctly? 

[xmasbaby0]

Even if you amend your 2019 return it would likely take until the end of the year (or longer) for the IRS to process the Form 1040X.  So your daughter's chance of getting a stimulus check in 2020 are slim to none, realistically.  And....the rule is if the child CAN be claimed they must say so on their own return--even if no one actually claims them.  If she marries in 2020 then for 2020 she and her spouse can file a joint return.  If they file a joint return, no one can claim either of them as dependents.  The stimulus money is an advance on a credit that will be available on 2020 tax returns.  

As for the "second" stimulus--Congress has not yet even voted on it, and no one knows at this time what it will be or who will be eligible.  Maybe in the next couple of weeks we will know, but for now....no one knows.

[jagamarza]

Thank you very much. Agreed that we certainly don't know about the second stimulus. We do understand we would have to amend both returns--hers and ours. We claimed her and she said we could claim her on her own form, but to be honest I would not be surprised if we could very legitimately switch that for 2019 as we did not itemize and carefully break down expenses. 

However, if the stimulus is really going to be calculated off of 2020 anyway, she will be independent, married filing jointly, and it will all be rectified then. Somehow her missing both stimulus checks (if there are two...one if not) will be corrected at that time it sounds like you are saying. They are both broke college students and would definitely qualify. He already did as he is 26 and unclaimed on anyone's taxes. 

Thanks!

[desertangel55]

She allowed me to add her to my 2019 return in hopes that it would help my family. It didn't make a difference. She lives with us. Under SSD she does not have to file taxes.

[xmasbaby0]

@desertangel55 So many users have posted to this thread it is impossible to tell who "she" is when you refer to "she allowed me to add her....."  And we cannot see your return so we have no idea who you claimed or if you should have/could have claimed her.  I will point out that if you claimed an adult who is getting Social Security or Social Security Disability, claiming her means she cannot get a stimulus check, since dependents cannot get  stimulus money.    People who get Social Security automatically qualify to get the stimulus money unless someone claims them as a dependent.  

[Ericpls]

I recently had my taxes Amended, I put I was a dependent when no one could claim me 2019, it has been 16 weeks, will I receive a stimulus check? 

[xmasbaby0]

@Ericpls Sadly you probably will not receive a stimulus check this year if you just amended. It normally takes about four months for the IRS to process an amended return--which must be mailed.  Right now it is taking much longer than normal.  Mailed returns have been piling up in trailers for several months during the pandemic.  The IRS is just beginning to dig through millions of unopened mail, so it will be a very long time before they make it to your envelope.  If you do not receive a stimulus check this year, it will be available as a credit on next year's tax return when you file your 2020 return in 2021.

[Critter-3]

Amended returns are expected to take 6 months or longer to process due to the covid shutdown this year and no one knows if they will still issue a stimulus check once the amended return it finally processed.

Now the good news ... if you don't get it this year you may be eligible to get the 2020 credit on the 2020 return you file next year ... so all is not lost just delayed.