@Mike9241 - the thread is specific to stimulus.
the stimulus PAYMENTS are based on 2018/2019 (for the 1st stimulus) and 2019 tax return for the 2nd stimulus.
the ACTUAL eligibility is based on the 2020 tax return.
and this is the kicker - if the payments (which would have included a child claimed in 2019) is greater than the actuals (which would also include a child claimed in 2020 on the other parent's tax return), the there is no requirement to return the money. THAT is how this legally occurs.
Example:
Parent 1: files single and claims the child in 2019. their PAYMENT is $2,900. But their 2020 tax return only shows stimulus eligibility of $1800, since the child is not included. The parent can keep the $2900 and does not have to return anything because the payment is greater than the actual.
Parent 2: files single in 2019. Their stimulus payment is $1800. But in 2020, they claim the child, so their actual stimulus eligibility is $2900. They can get the additional 1100 on Line 30 because the actual exceeds the payment!
The net is there are three people in this example, but the IRS paid out or provided credits on the tax return for 4 people! All legal. If there was an issue with it, Congress would have closed this loophole with the 2nd stimulus tax bill!
