@katydidit64
1) you can amend your tax return to remove them as dependents. Do note that you probably received $500 tax credits for each of them that would have to be paid back. it'll take 16 weeks at minimum for the amended return to be processed.
2) your parents should amend their tax return so that it notes that they can NOT be a dependent of anyone else's return. Again this should take 16 weeks at a minimum to process. There is no IRS guidance whether the stimulus will be paid out immediately after their amendment processes HOWEVER (and this is worst case)
- The stimulus payments are really based on their 2020 tax return (income, dependents, etc) .
- The IRS is using either 2018 or 2019 – whatever is available - to ESTIMATE that payment
- When they file next year there will be a “settle up” section on the tax return.
- if they are due more stimulus (and this would include where they didn't receive anything now), they will receive it through the 2020 tax filing as an additional refund
- If they received too much stimulus (not the issue here), by law , you are not required to return it
does that help?
