Deductions & credits


@Scarter17 wrote:

ok. even though they received a payment for a dependent?


Correct, with the following caveat.

You must answer "yes, I can be claimed as a dependent" if you can be claimed under the rules, even if you don't want to be claimed and the person who could claim you agrees not to.  If you need to review the rules, they are here.

https://www.irs.gov/pub/irs-pdf/p501.pdf

 

If you can't be claimed, then say so, and answer that the amount of stimulus you received was zero (because that's what was paid in your own name.)

 

The tl;dr answer is that the rebate was always and only a credit on the 2021 tax return.  The IRS was instructed to make estimated payments based on the best information they had, but final eligibility is determined by the 2021 tax return.  If you qualify now, you get the rebate.  Your parents will not have to pay the rebate back.  

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