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dvbrown2021
Level 1

Repaying my Stimulus?

Complicated situation here.

I'm a 19 year old, live with my parents, and am a part time college student.

 

On my 2020 tax returns, I filed as independent, since at the time I had a job and have been making more than $3,900 annually, and received the two stimulus checks that were sent at the time. Unfortunately, a few months later my mother decided to file me as dependent, on her taxes. The IRS rejected her forms and she subsequently amended my taxes and put me as dependent (we have the same tax person)

 

Now I am wondering, will I just be paying back the two checks I got or will there be penalties and fines included? 

1 Best answer

Accepted Solutions
xmasbaby0
Level 15

Repaying my Stimulus?

Okay---then your parents could claim you as a dependent and it was a mistake for you to say that you could not be claimed as a dependent when you prepared your own return.   You will have to repay those EIP payments.  It is not likely that you will face any penalties.   Lots of young people make the mistake of saying they cannot be claimed as someone else's dependent when they are inexperienced at preparing a tax return.   What you did is very common.   

 

If you are a student in 2021, and you are also earning money, make sure that you have a discussion with your parents before you file a 2021 return, and be sure that everyone is on the same page for those returns.   Whether you can be claimed for 2021 will depend on whether you have been a full-time student in 2021 and/or on how much your 2021 income has been.

 

But....a call from the IRS?  The IRS does not call you.   Watch for a letter in the mail.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

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3 Replies
xmasbaby0
Level 15

Repaying my Stimulus?

If a "tax person" prepared the returns and amended your return, why are you not asking these questions of the tax preparer?    What did the tax preparer tell you to do when the amended return was sent?   Did you repay the stimulus money when you amended?

 

Did you receive the 1st and/or 2nd EIP payments already?   Did the IRS send you the 3rd EIP payment?

 

It is not really clear whether you could be claimed as a dependent by your parents.   You mentioned that you are 19----were you 19 at the end of 2020?

 

You also say you earned "more  than $3900"-----but did you earn more than $4300 in 2020?   

 

You say you were a student----were you a high school student in 2020 or a part-time college student in 2020?

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
dvbrown2021
Level 1

Repaying my Stimulus?

My tax preparer informed me that I would have to repay back the two checks. I have not replayed the stimulus money yet but apparently I'm getting a call from the IRS in a few days.

 

I've received both the 1st and 2nd EIP  payments already but did not receive the 3rd one.

 

I was not 19 at the end of 2020.

 

By the looks of it, I did not earn more than $4300,  it was even less that $3900 in 2020.

 

I was a part-time college student in 2020.

xmasbaby0
Level 15

Repaying my Stimulus?

Okay---then your parents could claim you as a dependent and it was a mistake for you to say that you could not be claimed as a dependent when you prepared your own return.   You will have to repay those EIP payments.  It is not likely that you will face any penalties.   Lots of young people make the mistake of saying they cannot be claimed as someone else's dependent when they are inexperienced at preparing a tax return.   What you did is very common.   

 

If you are a student in 2021, and you are also earning money, make sure that you have a discussion with your parents before you file a 2021 return, and be sure that everyone is on the same page for those returns.   Whether you can be claimed for 2021 will depend on whether you have been a full-time student in 2021 and/or on how much your 2021 income has been.

 

But....a call from the IRS?  The IRS does not call you.   Watch for a letter in the mail.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
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