Stimulus and Added a Dependent

[Cowyn]

So in Feb of 2020, I added a child as a dependent through foster (State Court paperwork: Guardianship)

but there was no stimulus rebate for unpaid stimulus payments and turbo tax said I was eligible for the amounts that I received based on my other kids/family/2019.

I just want to double check because the checks were sent in 2020 but based on 2019 where he wasn't my dependent, I do not qualify for those checks.      Am I understanding this correctly.

Secondly, will the 2021 just approved amount be based on 2020 and will I be eligible for foster child payment?

Eligible either they should add it to my check OR eligible refund based when I file 2021 taxes

[CatinaT1]

The payments were an advance credit for 2020.  2019 information was used in sending out the payments since 2020 tax returns had not been filed at the point the stimulus payments were sent out.  They are being reconciled when you do your 2020 return.  In some cases, people may have been given a stimulus payment based on their 2019 dependents that did not qualify based on their 2020 dependents, and vice versa.  

[Cowyn]

Then I don't understand why a foster child who qualified as my dependent on 2020 return did NOT add in as a credit.

Why the turbo tax software told me I recieved the qualified for 3400, 2400 which would be me/wife/2 children.    Instead of asking me if I recieved 3900, 3000. which is what the added foster child would have made me qualify for.

Unless of course it was based on my oldest age, which he turned 17 in May 2020.    So is it possible he didn't qualify and the foster child replaced his qualification for both checks?  

[DanaB27]

Yes, your 17 year old no longer qualified in 2020 but you added the foster child. Therefore the foster child replaced the 17 year old child and the calculations are correct.

[Cowyn]

See that doesn't make sense because the law doesn't take money back if they overpaid.

It sounds like your program is flawed.

Because if they overpaid for a child turning 17 may 2020, who was 16 at the time of the first check

then they wouldnt take money back.

Yet, they didn't pay anyone for the foster child added.   

So because your program didn't ask for individual check recievers.     And only asked for Total, they did take the money back for the one who turned 17.

[CatinaT1]

This is the correct calculation.  It is not based on individual social security numbers, but on number of dependents under 17 that are actually claimed in 2020.  

The 17 year old will qualify for the third stimulus payment, however.

[Anonymous]

This isn't a program issue. It's how the IRS has instructed that the credit work.   

The checks are paid to or for specific dependents.  They are issued based on your total circumstances at the time of issuance, and what you qualify for in that "snapshot" of time.   If you hadn't added a dependent this year, then you would have technically received an overpayment - but the law says they can't ask for that back. When you were paid your advance payment you had yourself + X# qualifying dependents.  When you file your tax return, the calculation is the same (it's the number of dependents claimed, regardless of who they are) whether the dependents are the same individuals that received prior payments before.  The only "individuals" tied to payment are the primary taxpayers.  The rest are just numbers in the system.