Okay---fair to ask if your debts impact your dependents----they do not. But you have made mistakes in claiming those dependents. Those mistakes impact your own refund and the refunds of your children.
The income from unemployment counts as income for your 20 year olds---you should not have claimed them as dependents if they were not full-time students and had ANY 2020 income that amounted to more than $4300 in 2020---the only income that would not "count" would have been Social Security. You do not just ignore the income they received from unemployment when you look at their 2020 incomes to determine if they are dependents.
IRS interview to help determine who can be claimed:
https://www.irs.gov/help/ita/who-can-i-claim-as-a-dependent
So all of you should amend the incorrect returns you filed. Those twins are not your 2020 dependents and you should not have received stimulus payments for claiming them. They should have filed returns that said they could NOT be claimed as someone else's dependent and they could have received the stimulus payments for themselves by using the recovery rebate credit on their 2020 returns.
You do not say who the third adult dependent was----unless you have a qualifying dependent then you cannot file as Head of Household.
Am I Head of Household?
https://ttlc.intuit.com/questions/1894553-do-i-qualify-for-head-of-household
https://ttlc.intuit.com/questions/2900097-what-is-a-qualifying-person-for-head-of-household
If you qualify as Head of Household, when you enter your filing status (single or married filing separately) into MyInfo, and then enter your qualifying dependent, TurboTax will offer HOH as your filing status.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
