Can I amend my 2020 return if I found out I could have claimed both my elderly parents whom have dementia as earned income credit?

[raysr0331]

I have been taking care of both my parents for last year and a half. They both have dementia. I had to file with the IRS to get their stimulus checks to them but i found out that i could have claimed them.

[fanfare]

your parents filed as no-one-can-claim-me (thanks to you), so you cannot claim them on a 2020 tax return.

[xmasbaby0]

You cannot get earned income credit for claiming your elderly parents as dependents.  IF you can claim them all you get is the $500 credit for other dependents for claiming them.   It is not clear whether you can claim them---did you pay for over half their support?   

CREDIT FOR OTHER DEPENDENTS

https://ttlc.intuit.com/questions/4499708-what-is-the-500-credit-for-other-dependents-family-tax-cre...

You say your parents got the stimulus payments.   Dependents are not eligible for stimulus payments---so if you amend their returns to claim them they may need to pay that money back.

The only stimulus payment you can get for claiming a dependent older than 16 is the 3rd EIP payment--not the first or second one.   So your parents would have to pay back the first, second and third payments in order for you to get the 3rd one for claiming them.

WHO CAN I CLAIM AS A DEPENDENT?

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

Qualifying child

• They're related to you.
• They aren't claimed as a dependent by someone else.
• They're a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
• They aren’t filing a joint return with their spouse.
• They're under the age of 19 (or 24 for full-time students).
• No age limit for permanently and totally disabled children.
• They lived with you for more than half the year (exceptions apply).
• They didn't provide more than half of their own support for the year.

Qualifying relative

• They don't have to be related to you (despite the name).
• They aren't claimed as a dependent by someone else.
• They're a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
• They aren’t filing a joint return with their spouse.
• They lived with you the entire year (exceptions apply).
• They made less than $4,300 in 2020.
• You provided more than half of their financial support.

When you add someone as a dependent, we'll ask a series of questions to make sure you can claim them. There may be other tax benefits you can get when you claim a dependent.

Related Information:

• What does "financially support another person" mean?
• What is a "qualifying person" for Head of Household?
• Does a dependent for 2020 have to live with me?
• Do I qualify for Head of Household in 2020?
• Can I claim myself or my spouse as a dependent?

[xmasbaby0]

Oh---and as for earned income credit----your parents could possibly be qualifying relatives that you could claim as dependents, but only qualifying CHILDREN can be used as dependents to get earned income credit.  That is why you cannot get EIC for claiming your parents.

https://ttlc.intuit.com/questions/1899157-what-are-the-qualifications-for-the-earned-income-credit-e...

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant