Can my creditor intercept adult dependents UE refunds? A creditor intercepted mine.2 single filer d's haven't rcv'd theirs, worried my creditor intercepted their $.

[spomd]

I filed HOH with three adult dependents.  20 yr old twins worked, collected UE and were to receive a UE tax refund.  They filed Single Filers who could be claimed by somebody else.  Can. my creditor actually intercept their returns too?

[xmasbaby0]

You have not said who the creditor is----but YOUR creditor cannot seize the refunds of your dependents---only yours.   Perhaps you need to clarify for us whether the 20 year old twins were also full-time students---we cannot be sure whether you could have claimed them as dependents if they had more than $4300 in income for 2020.

 https://www.irs.gov/uac/tax-refund-offsets-pay-unpaid-debts

https://ttlc.intuit.com/community/refunds/help/what-is-a-refund-offset/00/26301

Reduced Refund      https://www.irs.gov/taxtopics/tc203

 NOTE: You can contact the IRS Treasury Offset Program Call Center at 1-800-304-3107 to ask if they have an offset for you on file. TurboTax would not have that information.

https://turbotax.intuit.com/tax-tips/tax-payments/who-can-garnish-an-income-tax-refund/L7cPPzDyc

[xmasbaby0]

And....as for the extra refunds for unemployment----it is possible that you are all just too impatient.

The IRS began to send out the additional refund checks for tax withheld from unemployment in May.  The refunds are being sent out in batches—starting with the simplest returns first.   If you are eligible for the extra refund for federal tax that was withheld from your unemployment the IRS will be sending you an additional refund sometime during the next several months.  TurboTax cannot track or predict when it will be sent.  The IRS has not provided a way for you to track it, so all you can do is wait for the refund to arrive.

https://ttlc.intuit.com/community/tax-topics/help/how-do-i-get-the-new-unemployment-benefits-if-i-ve...

Please read this very recent news from the IRS:

https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-m...

https://www.irs.gov/newsroom/irs-begins-correcting-tax-returns-for-unemployment-compensation-income-...

https://ttlc.intuit.com/community/tax-credits-and-deductions/help/am-i-eligible-for-a-new-credit-or-...

https://www.irs.gov/newsroom/2020-unemployment-compensation-exclusion-faqs

[spomd]

They were not full-time students and did not make over $4,300 in 2020 at their place of employment.  Counting their few weeks on unemployment, they did make over $4,300.  The intercepted debt was an old car loan.  I did not think my creditor could intercept theirs, but was concerned as mine was intercepted very quickly in the process and I should have been after them in the batch UE refunds as I am HOH and claim dependents (I have another daughter who was in full-time school in 2020).  I'm happy to have confirmation that the creditor cannot intercept their returns.  Thank you.

[spomd]

This has nothing to do with impatience.  It was a specific question regarding old creditors and intercepting returns.  I decided rather than continue to worry that my debt may have impacted their refunds, I'd ask here. 😄

[xmasbaby0]

Okay---fair to ask if your debts impact your dependents----they do not.   But you have made mistakes in claiming those dependents.   Those mistakes impact your own refund and the refunds of your children.

The income from unemployment counts as income for your 20 year olds---you should not have claimed them as dependents if they were not full-time students and had ANY 2020 income that amounted to more than $4300 in 2020---the only income that would not "count" would have been Social Security.   You do not just ignore the income they received from unemployment when you look at their 2020 incomes to determine if they are dependents.

IRS interview to help determine who can be claimed:

https://www.irs.gov/help/ita/who-can-i-claim-as-a-dependent

So all of you should amend the incorrect returns you filed.   Those twins are not your 2020 dependents and you should not have received stimulus payments for claiming them.   They should have filed returns that said they could NOT be claimed as someone else's dependent and they could have received the stimulus payments for themselves by using the recovery rebate credit on their 2020 returns.

You do not say who the third adult dependent was----unless you have a qualifying dependent then you cannot file as Head of Household.

Am I Head of Household?

https://ttlc.intuit.com/questions/1894553-do-i-qualify-for-head-of-household

https://ttlc.intuit.com/questions/2900097-what-is-a-qualifying-person-for-head-of-household

If you qualify as Head of Household, when you enter your filing status (single or married filing separately) into MyInfo, and then enter your qualifying dependent, TurboTax will offer HOH as your filing status.

[spomd]

1 full time college student, age 21 in 2020 (mentioned above though embedded in a response). 

Ahhh, and yes, you're correct in that I  do not 'just ignore the income'. 😉  I take my taxes very seriously, ty.  The assumption I went at this haphazardly is unnecessary.  It is my understanding that the twins qualify as dependents, as I provided more than 50% of their support in 2020, per the qualifying test(s) used when doing my taxes here in TurboTax.  I will certainly be relooking at everything and rerun numbers should TT have led me astray.  

[xmasbaby0]

If your 21 year old is a full-time student then the student can be claimed no matter how much they earned.  But not the 20 year olds------it does not matter if you paid over half their support.  If their income was more than $4300 for 2020 they are not qualifying children or qualifying relatives and you cannot claim them.

WHO CAN I CLAIM AS A DEPENDENT?

You can claim a child, relative, friend, fiance (etc.) as a dependent on your 2020 taxes as long as they meet the following requirements:

Qualifying child

•They are related to you.

•They cannot be claimed as a dependent by someone else.

•They are a U.S. citizen, resident alien, national, or a Canadian or   Mexican resident.

•They are not filing a joint return with their spouse.

•They are under the age of 19 (or 24 for full-time students).

• No age limit for permanently and totally disabled children

  •      They live with you for more than half the year (exceptions apply).

Qualifying relative

•They don't have to be related to you (despite the name).

•They cannot be claimed as a dependent by someone else.

•They are a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.

•They are not filing a joint return with their spouse.

•They lived with you the entire year.

•They made less than $4300  (not counting Social Security)

•You provided more than half of their financial support. More info

[spomd]

I am planning to relook/redo.  Frustrated as I checked this and got the green light on TT.   I'd love to know why the IRS doesn't allow for certain ages, but if they were older and still living with me it would be fine.  At every corner, it seems my greatest mistake was not getting them a disabled status. Ah well... no going back.  Ty!

[spomd]

FWIW, I amended and removed them.  I'm still not sure why they were eligible to begin with.  Regardless, it didn't change the return amount as I never received any credit for them, thank goodness.  Now to have them amend theirs and maybe they'll even get that last stimulus payment that never came to either of us.

[xmasbaby0]

If they are amending their returns make sure they also use the recovery rebate credit to get the 1st and 2nd stimulus payments for themselves.   The RRC is based only on 2020---so if they cannot be anyone's dependent for 2020 that makes them eligible for all the stimulus checks.

Just do not expect quick results---it takes the IRS a long time to process an amended return.

The stimulus check is an advance on a credit you can receive on your 2020 tax return.  If something went wrong or you did not get the stimulus check in 2020, you can get it when you file your 2020 return in early 2021

The Recovery Rebate Credit will be found in the FEDERAL REVIEW section. ( you should see "Let's make sure you got the right stimulus amount”)  If you are eligible it will end up on line 30 of your 2020 Form 1040.

Make sure that you enter ALL of the stimulus money received for the 1st and 2nd stimulus for yourself, your spouse and your children.   

https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-j-reconciling-on-your-...

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

Even during “normal” times it takes about four months for the IRS to process an amended return.  During the pandemic and due to the severe backlog at the IRS it is taking much longer—six months or more for many amended returns.  Do not expect quick results from amending.  When the IRS issues a refund for an amended return it will be by check.  They do not make direct deposits for refunds for amended returns.  You can watch for information here:

Select your tax year for amending instructions:

• 2020
• 2019
• 2018
• 2017

     What does it mean to "amend" a return?

·         Do I Need to Amend my Tax Return?

https://www.irs.gov/Filing/Individuals/Amended-Returns-(Form-1040-X)/Wheres-My-Amended-Return-1