ErnieS0
Expert Alumni

Deductions & credits

Your daughter is eligible for the Recovery Rebate Credit on her tax return because she in not a dependent. And you don’t have to pay back the money.

 

The IRS says: "No longer a dependent: Individuals who were claimed or could be claimed as a dependent on someone else’s tax return for 2019 or 2020 may now be eligible if they can’t be claimed as a dependent on someone else’s tax return for 2021."

 

See: Q C2. Not Eligible for Third Economic Impact Payments: If I wasn’t eligible for a third Economic Imp....

 

Make sure neither of you claim your daughter as a dependent and enter the amount of stimulus you received on your return. Your daughter will enter $0 because she did not receive the payment (it was paid to you).

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