Enter your third stimulus in the stimulus section of TurboTax. This is to keep you from claiming the stimulus again – and having IRS adjust your refund.
Can you provide clarification regarding this situation around dependents? Our daughter (24 yrs old and living with us) claimed herself for the 2020 tax year, and received the $1,400 stimulus payment last March, 2021. During 2021, she only made $2,500, and since we provided for almost all of her living expenses, we are claiming her for the 2021 tax year. My husband and I each received $1,400 in stimulus money in the spring of 2021. We're filing jointly for 2021, and when we get to the place where we enter stimulus, Turbo Tax is figuring that we should have received $4.200 - I'm guessing because we are claiming our daughter. When I enter that we only received $2,800, TT calculates an additional $1,400 credit due to us. When I file my daughter's return (filing single and filing as 'someone else can claim me'), in the stimulus section, it shows that she should get $1,400 back. I enter that she did get $1,400 back, but it would seem that since we are getting the $1,400 credit, she should have to pay back the $1,400 that she received. What am I missing? We shouldn't both get to take the $1,400 credit for her.
Your daughter doesn’t have to pay back the stimulus she received last year and you are entitled to a $1,400 Recovery Rebate Credit on your tax return @denisegvw.
You should tell TurboTax your received $2,800 and your daughter should tell TurboTax she received $1,400 on her return.
Here’s what IRS says:
Q E15. Dependents: Can my 2021 Recovery Rebate Credit include an amount for a qualifying dependent if the dependent received the third Economic Impact Payment or someone else received the third Economic Impact Payment for the dependent? (added January 13, 2022)
A15. Yes, if you meet the eligibility requirements to claim the 2021 Recovery Rebate Credit. The amount of your credit may include up to $1,400 for a qualifying dependent you are claiming on your 2021 return.