Regarding 6475 letter

[monkeymead]

My daughter started working full time in 2021, I claimed her in 2020. 

I received her $1400 stimulus in 2021 from 2020. Their is no record of her working in 2020 but Turbo tax wants to know how much stimulus money she received (NONE) but if I put in zero amount it wants to give her a  $1400 dollars. 

My wife and I collected $2800.00 and another $1400 for my claimed daughter of 2020.

Someone from Turbo tax said to claim her in 2021, obviously the wrong answer, I believe.

Any takers on this conundrum?

Thank you, Jim

[DoninGA]

She is eligible to receive the Recovery Rebate Credit of $1,400 on her 2021 tax return if you are not claiming her as a dependent on your 2021 tax return.  So she would answer No that she did not receive the 3rd stimulus payment when asked in the TurboTax program.

[monkeymead]

Hello and thank you for the quick response.

I thought the amount that was received in 2021 was based on your 2020 taxes,

that was why I received $1400 x 3, myself, wife and daughter.

So by her claiming no money received in in March of 2021 it was because

she didn't have a return in 2020, I claimed her.

Doesn't it look like we are collecting double for, like going to the well twice?

 just trying to avoid the dreaded "YOUR BEING AUDITED"!

Thank you again

[DoninGA · Accepted solution]

@monkeymead That is how the genius's in Congress wrote the tax code.  So it is a loop-hole for the same person to get the stimulus twice, once as a dependent on 2020 tax return and then again as a taxpayer on a 2021 tax return.  Yes, it is legal and will not flag a review by the IRS.

[monkeymead]

Outstanding! Usually it's the other way around

A+++++ for your help, Jim

[r64]

my daughter was a student in March 2021 she graduated in May 2021 and went to work. I received the 1400 for her as a dependent. Does she get the 1400 since she is working now? What do I put in Turbo Tax as a answer for the question about the 6475 letter?

[DawnC]

You should enter the exact amount that is on your letter (and your spouse's if filing jointly), no matter what it says.    Answer Yes to the stimulus question (you received it) - then TurboTax will ask for the amount; enter the exact amount from your 6475 letter.    There will be a spot to enter yours and your spouse's separately.     

If you are claiming her as a dependent on your tax return this year, then no, she will not receive the payment.    She would only get the payment if she files her return and marks ''I cannot be claimed as a dependent''.    But it sounds like you may be able to claim her, and if so, she would not qualify for the Recovery Rebate for the stimulus payment.    

If she was under 24 on 12/31/21 and she was a full-time student during any 5 months of 2021, you may qualify to claim her - and if so, she can't claim herself.   But if she does not qualify as your qualifying child (maybe she provided over half of her own support for 2021), she files her own return and claims herself by answering NO to the Can anyone else claim you? question.   In this situation, she will receive the $1400.   TurboTax would ask her about her 6475 letter and she would answer NO (she did not receive a payment).  

To verify whether or not you can claim your daughter, review the qualifiers below.   

Qualifying child - click this link for more info

• 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.  ***

@r64