I received the first $1200 stimulus based on my 2018 taxes because I hadn't yet filed 2019. My parents then filed me as a dependent in their 2019 taxes for the first time in years. I was 27, but unemployed so I didn't file 2019 because I had no earnings.
I did not get the second $600 stimulus because I was ineligible due to being a dependent. I'm pretty sure this is correct. If I understand it my parents didn't get my stimulus, but it was cheaper for them to claim me. Their tax guy didn't tell them how much they would save, yet they blindly accepted even knowing there was another stimulus of unknown amount almost guaranteed... Doing some research I came across the number $1100 for a deduction based on my situation (minimum standard deduction for non child dependent). Is it safe to assume that is how much they saved from claiming me as dependent?
The problem comes when I'm filling out my 2020 taxes when I get to the "Let's make sure you got the right stimulus amount" section during Federal Review. I correctly entered 1200 for the first round and 0 for the second. It then shows I have a credit of $600. Am I actually eligible to get that, or is it wrongly showing that because it didn't ask if I had been a dependent in 2019? Or do I get the $600 because it passed in late 2020 and 2019 was my dependent year? Could I be forced to repay the first $1200 stimulus because that was based on 2019, even though covid only started in the USA in 2020?
Assuming it is wrong (although as with all my assumptions, please still confirm) if I leave it at that will the IRS get a red flag and send me a letter making me amend it, or would they just see I was a dependent and not add the $600? If I am eligible, would my parents then owe the IRS the $1100 deduction? If I'm not actually supposed to get a $600 credit the only way I can think to fix it would be lying in that section and claiming I had already received the $600. The last thing I want to do is lie on my taxes though so that can't be the only way. What do I do?
One last issue in regards to the third stimulus this time. I am claiming independent for 2020. If I put that I'm not eligible to be claimed as a dependent and my parents do not claim me again, would I be correct in assuming I will be eligible for the third stimulus since I saw it is based on the 2020 tax year?
I plan on filing right away, but is there a time window that could cause me to lose it? Like if the stimulus bill somehow passes congress before 2020 taxes are processed could it go based off of 2019 and think I am still a dependent making me ineligible again? If the $600 credit situation forces me to amend delaying it past the third bills passing could that screw me in the same way? Or could I use the Recovery Rebate Credit thing in those situations and have it update my taxes to 2020 so I can get it?
Sorry for such a long message with so many questions, but it has been giving me massive anxiety. I would greatly appreciate anyone who could answer as many of my questions as possible. If this should be it's own thread I apologize and will post a new one, but it seems to fit the topic.
