Calculating Support with Scholarship

[Hal_Al]

If you are getting a refund, there is no IRS penalty for filing late (the penalty is calculated on the amount you owe). But, TurboTax shuts down e-filing at midnight Oct. 17. Late filed returns will have to be printed and mailed. 

The government sent out "Stimulus" checks. These were advance payments of a credit to be claimed on the tax return, for those years.   Those who didn't get a stimulus check (and were entitled to it) can claim it as a "Recovery Rebate Credit" on their tax return.  The difference between your situation and the  ones who got duplicate payments, is that all duplicates were received as advance "stimulus" payments (also know as Economic Impact Payments [EIP]).  Your son will be claiming the Recovery Rebate Credit, knowing that his parent has already received it. I don't know what the IRS will do in that case. Here's, at least, one expert who says you can do that:  https://www.freep.com/story/money/personal-finance/susan-tompor/2022/04/06/2021-recovery-rebate-cred...

Also Q.9 at the IRS web site seems to indicate that you can do that.  https://www.irs.gov/newsroom/2021-recovery-rebate-credit-topic-c-eligibility-for-claiming-a-recovery...

Q. Is there any way to put in separate line items that get added together or do I had to figure it out and then add it back in and put it all together in one lump sum of additional books and materials required.

A. You have to use the entry boxes provided. 

This forum is not "live chat".  You leave question, then wait for somebody to come back, to the forum, and read it.  We are notified that you have left a new reply, but only when we are logged in to the forum. 

[lcolantuoni14]

My head is spinning because I didn’t sleep all night and I can’t think straight the first link that you gave me I couldn’t follow at all I didn’t see where it clearly said if I filed 2020 and claimed my son and I got both mine and his that he can file and do the recovery stimulus ….. But what looks pretty promising is that the actual IRS document in that question C9 that says if I’m interpreting it correctly that if my son was a dependent and I claimed him but in 2021 he’s independent and cannot be claimed by someone else then he’s eligible to do the recovery stimulus??? It doesn’t say anything about any exception saying that the person who claimed you then is not entitled to keep the additional $1400 I don’t see where it says I would be in trouble or my son would be in trouble I just don’t want to get audited! Should I purchase a Turbotax audit protection? Where did you see in the first link that I convinced you that my son could claim the recovery stimulus I just don’t wanna do anything wrong I would rather not get the 1400 and not have to deal with the IRS but their own bulletin in question nine sure sounds like he can get the recovery stimulus doesn’t it? 

[Hal_Al]

Q. Where did you see in the first link that  convinced you that my son could claim the recovery stimulus (Recovery Rebate Credit). 

A.  About 8-9 paragraphs down, under the heading  "Can you be claimed as a dependent on another person's 2021 return?"

"The parent who claimed the dependent on a 2020 return might have received the third stimulus payment in advance of filing their 2021 return this year, he said, and does not have to pay that back even if the grown child who is no longer a dependent qualifies now  [I assume qualifies for the recovery rebate credit] when filing a 2021 return."

It doesn't so much "convince" me, as much as it leaves the "door open".   At first, I though you could not do it.  Now, I'm leaning toward that you can.  If it's wrong, you don't get "audited".  You get a simple letter, telling you to pay it back.  Based on the simple fact that TT only asks about getting the 6475 letter, I think your safe in claiming it. 

Turbotax audit protection only protects you against interest and penalties. You still have to pay the $1400 back.  I wouldn't buy it. 

[lcolantuoni14]

My email stopped working and i didnt see your reponse on stimulus.

I see that paragrah you are referring to but about 4 paragprahs above there is something else that sounds like my son cannot claim rebate recovery  of 1400

"Someone who was a dependent in 2020 but is no longer a dependent in 2021, such as a 2020 graduate, might qualify for the recovery rebate credit and not realize it, Hetherwick said. 

Yet this tax strategy for claiming the credit doesn't work for everyone. 

"If they were full-time students for more than four months and one day in 2021, then they are technically still a dependent in tax year 2021," Hetherwick said.

If you can be claimed as a dependent on another person's return, you cannot take the recovery rebate credit."

Q - i am confused as it all refers to '2020 graduates' My son is 22, he graduated in 2022 but is now working on his Masters at same school. Which is why he might go from independent to dependent becuae he most likely cant provide e 50% of support in 2022-2023. Not sure as I need more info from his father about who controls my poor sons finances.  But we established that he is ok for being independent for 2021???  -

Q: by the way, then  could the IRS question that a well? 

THnis sentence says if they are full time for more than 4 months and one day in 2021, then they technically are still a dependent - so given my son is in school still - and a senior in 2022 and more than the time specified below of more than 4 mths 1 day then it says hes a dependent in tax year 2021???? How can that be correct?  Is it becuae of the timing of the stimulus I got was from 2021 although the letter I have withj the 2800 is dated Jan 2022.  - this is not an IRS pulblication like the other link you sent but this negates what was said in paragprah 9 of other link -doesnt it? SO the IRS publication takes precedence?

Thanks for all your help- im on computer and have hand tremor so sorry for typos. 

Ok so you think ok iwthout the audit portection.

And you said that even if Idont get filing in tomorrow that they will not be laet-I always thought there was a filing deadline and p ayemnt deadline. And I dont wnat to print everything I ahve 3 returns and states. 

Q Another questions is that he livfes in NJj and worked summer in Colorado and paid 4700 in rent and drvvoe out there 4 days from NJ - none of that is deducitble as a post from 2019 somehwere in turbtoax said that that temp living expenses for internship can be deducted as job expenses but then I couldnt find it in tt so she said it was an old dated post updated to a 2019 date but no longer exists - plus that would mean only itemizing right?

Q I am nervous for taking responsibility to calim teh 1400 as I dont want my son to get into troule but I dont want him to also lose out on 1400.  He reallly needs it. I also erad tht then my version of turbotax that I have to give as proof to his father - will look like he got bigger refund - it already did look that way as I paid esiamnted taxes. ANd I wasnt good about keeping proof of it - paying online etc... SO can I adjut it in turboptax? 

Sorry for typos.

Thanks so much - Do ou recommned taking the 1400 from what youve read from IRS? 

[lcolantuoni14]

I read what you wrote again and you said "Based on the simple fact that TT only asks about getting the 6475 letter, I think your safe in claiming it. "

Then - if turbotax is not phrasing it correctly - in other words if it shoudl say 'Did you get this letter or did someone who claimed you get this letter and 1400 for you" then it would  be easier to answer ...So did turbotax incorreclty word it? Or Is  the IRS publication correct in the Q9 pararaph? Is turbtotax msileading or does it assume that the letter might not have gone to my son but he woild know if  I got the letter and his amount? Maybe some paernts dont tell their kids? It is confusing how turbotax phrases it - is tere a turbotax employee in the forum or are the experts turbtax employees/

Thansk I am stuck on this...

[Hal_Al]

Q.  about 4 paragprahs above there is something else that sounds like my son cannot claim rebate recovery  of 1400.

A. No. That Paragraph is only saying that student status leads to him being a dependent which, in turn, denies him the stimulus/rebate credit.  We've already established that it's the residency rule and his income that keeps your son from being a dependent.

Q.  i am confused as it all refers to '2020 graduates' My son is 22, he graduated in 2022 but is now working on his Masters at same school. Which is why he might go from independent to dependent becuae he most likely cant provide e 50% of support in 2022-2023. Not sure as I need more info from his father about who controls my poor sons finances.  But we established that he is ok for being independent for 2021???  

A. Yes. He can't be a Qualifying child dependent because he doesn't reside with the parent.  He can't be a Qualifying Relative Dependent because his taxable income is more than $4300.

Q.  by the way, then  could the IRS question that a well? 

A. The IRS can question anything. 

Q. THnis sentence says if they are full time for more than 4 months and one day in 2021, then they technically are still a dependent - so given my son is in school still - and a senior in 2022 and more than the time specified below of more than 4 mths 1 day then it says hes a dependent in tax year 2021???? How can that be correct? 

A. It's only correct if he also meets the other 2 Qualifying Child rules (support and residency). He doesn't.

Q. Another questions is that he livfes in NJj and worked summer in Colorado and paid 4700 in rent and drvvoe out there 4 days from NJ - none of that is deducitble as a post from 2019 somehwere in turbtoax said that that temp living expenses for internship can be deducted as job expenses but then I couldnt find it in tt so she said it was an old dated post updated to a 2019 date but no longer exists - plus that would mean only itemizing right?

A. As previously discussed, a W-2 cannot deduct any of those expenes, either directly or as an itemized deduction.  I think you indicated that the internship may have been self employment.  Self employed people are allowed to deduct out of town expenses. But, a student internship would not qualify for those deductions.

Q. Do you recommned taking the 1400 from what you've read from IRS? 

A. Simple answer: Yes.  You have a reference to cite and TT allows it.  The lack of a conflicting reference (so far) seems to suport that. 

Q. And you said that even if Idont get filing in tomorrow that they will not be laet-I always thought there was a filing deadline and p ayemnt deadline.

A. There are both, but there is no penalty for filing late, unless you owe tax.  The penalty for Paying late (as opposed to just filing late) will be back dated to April 15.  

[Hal_Al]

When you first asked the question, my feeling was that that can't be right.  A family can't knowingly get two payments.  But, since we cannot find where that is specifically stated and what is stated seems to say just the opposite, I would claim it.

I'll give you an example where I've specifically seen where two payments are allowed: divorced parents alternate years on who claims the kid, as a dependent. Mom got the $1400 stimulus payment because 2020 was her year. Dad can still claim the $1400 Recovery Rebate Credit, for the same child , on his 2021 return. 

[lcolantuoni14]

Thanks - 

I read what you wrote again and you said "Based on the simple fact that TT only asks about getting the 6475 letter, I think your safe in claiming it. "

Q I think I posted abou this but had another questions. You said I could cite TT. To Who? THE IRS? Could turbotax hav phrased it i ncorrectly and even so- I am still responsible right? Like what they say about being ignorant - Im still at fault with the IRS if the wording in TT was misleading right? 

Q how long after I efile will it get accepted? I never waited this long before deadline before and nervous. People aer saying they have been trying to efile and not going through.

Q I have Colorado taxes as well -can they be efiled as well as NJ? 

[Hal_Al]

Q.  I think I posted abou this but had another questions. You said I could cite TT. To Who? THE IRS?

A.  You don't cite anybody while you file.  Citing comes later, if you're questioned by the IRS.

Q. Could turbotax hav phrased it i ncorrectly and even so- I am still responsible right? 

A.  Yes, but the only consequence is you pay it back.  You'll have plenty of company.  This is, most likely, going to be a common occurrence.  

Q.  how long after I efile will it get accepted?

A.  If you e-file, acceptance is within 24 hours and your refund is direct deposited 7-10 days.  Paper filing  takes months.

Q.  I have Colorado taxes as well -can they be efiled as well as NJ? 

A. All states have e-file. If you have download TT (not online), there is an extra fee to e-file each state. 

[lcolantuoni14]

Thanks.

I know I am paranoid because my sons father will be telling my son I screwed him up andif its wrong and accuse me of stealing etc..and my son will get upset. 

Q So, if the IRS calls my son - he will be clueless as I do his taxes! Will that present antoher problem - I think there is a spot to put me down to talk to? Where is that?  When you say I cite it after the fact - would they call my son? Should I put my info down..or will it be a lettter? And how do i cite it - a screen shote - i am still responsible if i twas misinter[preation though

Q so you think this will be impact lots of people - the IRS is stasffing up 87k agents I heard

Q Was there a number I could have called to ask this question directly - as it is too late now and I am worried about efiling so late and taking 24 hours. I should have looked inot this months agao but I forgot about it 

 I put my son as dependent with his soical on 2020 taxes - wont the IRS look him up by social and see that I got the 1400? I read hwre it ways to check that you got the correct amount online etc... I know I go tthe 2800 - but alos it says it was mid March -April 2021 I think and the letter I got does not say the tiitle that TT describes - mine is dated jan 18 2022 and says letter 6475 at bottom

Q if it takes 24 hours for acceptance then I am already late - because it could take 24 hours to get rejected and I know you said with refunds its ok but Im worried - I have my own to do but not worried about them! Jsut my son as mine are easy. And right now people are saying that efile isnt working they have been trying all day - is that an IRS thing or a TT issue?

[lcolantuoni14]

I am sorry so many questions:

Q if it gets rejected by turbotax - and efile for TT ends midngiht tomorrow Oct 17..what do I do?  How will I get a message? I erad to try to submit again - but I wont be able to correct? So, I wont get a mesage right away - it will take 24 hours....ughh 

Q I paid my sons taxes but he never got a refund until now becuase i did est payments  and paid in april. Can  I use my account in  my soical security number for direct deposit or must I use his. I put his down last time but he owed and I also see option in worksheet to diect debit - should I select that as well? I ask about my accnt - I dont want to use it I want to use his - his account has been locked since Memoiral day and its a mess trying to fix it becase we need to call together since my info pphone etc is where they send code...I assume it must be his accnt in his soical.

QCan I be third party desginee and what is that?

Q I read that I will be asked for AGI - not sure if Iasked you this already but read in forum that people are not having it go through - not accpetoing lsat years AGI so to put in zero - is that correct? 

Q will the forum continue tonight past midngiht?

[lcolantuoni14]

I just checked the message that I got from TT for the stimulus - I received 2800. Turbtotax thinks I got 1400 and asked if that was amount on letter. I marked no and put in the 2800. will that get matched against my sons? 

TT is very misleading - and I need to put my correct amt in - so it will hsow 2800....Where on 1040 will that be?

im worried becuase i dont want to snail mail all this stuff and if it takes too long to get accepted then I have to mail it all correct? 

thanks

[lcolantuoni14]

Hi -

Q Well Out of paranoia I got the audit defene for first time so if they want me to cite anything about the stimulus can I use turbotax for that?

Q I didnt want to wait any longer - as it is it took a while as needed my sons license etc 

Q I am worried as it is not 24 hours for acceptance - the estimate is Wednesday Oct 19!! What happens if they do not get accepted...and will that stimulus recovery rebate caue it to possibly not get accepted?

Q If not accepted then I have to snail mail everything becuae no more efile after midnight Oct 17?

Q TT should keep efile opne esepically if they are delayed in accepting or is that on the IRS end? Either way - knowing there are delays TT should tell people to ensure accpetance in time file 2 days earlier - everyone thinks Oct 17 by midnight is fine but its really not - so I will have snail mail everything if they dont go through and will it be considered late? 

Q Would it have been better to snail mail if this close to deadline? 

Q I still have to do my own taxes

Q it aks if I got letter with 1400 - I said no and entered the correct 2800 - will that somehow get matched to my son

Q I know Im asking same qsnts - thanks for help

[lcolantuoni14]

Q my son was my dependent last year on taxes and labeled dependent

When I opened up my taxes to do for 2021, it listed him under heading of 'Dependent"  But next to his name it said Nondependent/for EIC/dependent care only

What does that mean?  HE cannot be claimed as dependent because he filed independent - so do I just delete him compeltely

Good News his federal taxes did get accepted  - waiting for states

[Hal_Al]

Yes, you just delete him completely.

There is a way to leave him, in there, so he'll pop up next year, but that just risks making mistakes.  It's easy enough to re-enter his info, next year, if he becomes your dependent again.

"Nondependent/for EIC/dependent care only" is not correct, in your case.  It's for when the student/child lives with you (the custodial parent) but the other (non custodial) parent is claiming him as a dependent.