@sophiem123 -
did you daughter complete her 2019 tax return. I suspect she did not indicate she CAN be claimed by someone else. that is a common error among young adults. from what I have seen, the IRS is not using 2018 tax return currently to determine stimulus payments
The "right thing to do" is for her to return the money, DO NOT wait for the IRS to find the mistake - since your daughter knows it is a mistake it is her (and not your) responsibility to decide to return it.
Understand she signed a tax return where she stated (see the signature line): "Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. "
Now that she knows it is not true, correct and complete, she is LIABLE. You are not liable.
if YOU make the decision that she keeps the money and the IRS finds out, they will come after her, and not you! It is quite possible they will figure it out because you claimed her and they sent her a $1200 payment - quite easy to figure out.
Suggest she send the check back to the IRS by making the check out the the US TREASURY (or if she received a paper check, just write void on it) and include a brief note stating she inadvertently failed to check the box that she CAN be claimed on someone else's tax return and be sure her SS number is on the check.
Click this link to determine the mailing address:
https://www.irs.gov/filing/where-to-file-addresses-for-taxpayers-and-tax-professionals-filing-form-1...
hope that helps... and please do the right thing.....
