1. Yes, you will need to file amended 2020 tax returns because the standard deduction amount will change if you are claimed as a dependent on someone else's return.
Form 1040-X will not be available for another few weeks. Once it is available, you will be able to e-file the amended return. Check this link for the most recent updates for IRS forms availability.
Your state may have to be paper filed unless you live in Georgia, Michigan, New York, or Vermont that accept amended returns electronically.
To Amend(change) your 2020 TurboTax Online return, follow these steps:
- Open the return--you will be at Tax Home.
- Scroll down to Your tax returns & documents and Show.
- Select 2020, and Amend(change) return.
Only after the amended return is started, navigate to My Info and adjust the answer from no to yes at 3. A few other things we need to know, the first question: Someone else can claim me as a dependent on their tax return.
2. To return the stimulus money, follow these steps per the IRS:
- Submit a personal check, money order, etc., immediately to the appropriate IRS location listed below.
- Write on the check/money order made payable to “U.S. Treasury” and write 2020EIP, and the taxpayer identification number (social security number, or individual taxpayer identification number) of the recipient of the check [on the memo line].
- Include a brief explanation of the reason for returning the EIP. [a short note dated and signed-you may wish to use the same note as you include on the memo line of the check as the header of this note]
See this link under Question 1 for which address to use to send the repayment: Economic Impact Payment Information Center — Topic I: Returning the Economic Impact Payment | Intern...
