Recent College Grad and 2020 stimulus question

[MonicaM2000]

My son graduated from College in 2020.  I claimed his as a dependent on my 2019 return, therefore he didn't receive stimulus checks last year.  For the 2020 return,  he is filing and I am not claiming him as a dependent. Turbotax asked whether or not HE received the $1200 + $600 last year, we answered "No" (because he wasn't entitled to it since I claimed him).  The refund calculation increased by $1,800. My question is, is he eligible for the Recovery Rebate of $1,800 ? Must he have provided more than 1/2 his own support? Is there some other qualifier I should be aware of? Thank you!

[MaryK4]

Yes your son is eligible for the Recovery Rebate Payment because he is not a dependent in 2020 and he did not receive either Economic Impact Payment.  It is not a requirement that he provided more than 1/2 of his own support, but if he did you would not be able to claim him.  This is the type of situation the IRS wanted to remedy with the Recovery Rebate Payment (allow some who fell through the cracks to get the stimulus payment)

[Hal_Al]

I think you have two questions there.

Q1. Does he really get the recovery  rebate?

A.1. Yes, if he does not qualify as you dependent for 2020?

Q2.  Does he still qualify as your dependent, the year he graduates?

A2. Maybe. As your surmised, yes,  he must  have provided more than 1/2 his own support, to not be a dependent.

Graduation year 

If he/she was a student (under 24) for parts of at least 5 months and lived with you for more than half the year, and did not provide more than 1/2 his own support for the whole year, you can still claim him. 

The real question is who should be claiming him in this "transition" year to adulthood. You two have to agree on who is going to claim his exemption. Each should do their taxes both ways and see which way the family comes out best.  Even then, you have to meet the rules. The rule is that a child of a taxpayer can still be a “Qualifying Child” dependent, regardless of  his income, if:

1. he is a full time student under 24 for at least 5 calendar months of the year (graduating in May usually means you meet the 5 month rule)
2. he did not provide more than 1/2 his own support  (scholarships are ignored in the support calculation)
3. lived with the parent (including time away at school) for more than half the year

So, it usually hinges on  "Did he provide more than 1/2 his own support in 2020.

The support value of the home you provided is the fair market rental value of the home plus utilities & other expenses divided by the number of occupants. IRS Publication 501 on page 20 has a worksheet that can be used to help with the support calculation. See: http://www.irs.gov/pub/irs-pdf/p501.pdf