@shawntewell wrote:
She is 22 yrs old and I usually claim her. But this year she made $14000 and with the stimulus it benefited her to claim herself. When I removed her from my tax info on Turbo Tax, I didn't double check and it has her listed as my dependent. So I need to remove her so she can file on her own.
You will have to amend your 2020 tax return that was filed to remove her as a dependent.
Due to the all the changes that Congress imposed on the tax code in 2021, the amend process using TurboTax is temporarily not available - https://ttlc.intuit.com/community/amend-tax-return/help/why-can-t-i-amend-my-return/01/2122917
She can still file her tax return but it will have to printed and mailed. It cannot be e-filed since the IRS has already received a tax return with her name and Social Security number as a dependent. She would still have to mail the return even if you have amended your return.
The IRS will pay any tax refund on her return and she may also be eligible for the 1st and 2nd stimulus payments using the Recovery Rebate Credit on the 2020 federal tax return. The third stimulus payment more than likely will not be paid to her this year but she can apply for the credit on her 2021 tax return to be filed next year.
