Our 21 year old daughter is a full time college student who did not provide 50% of her financial support in 2020. As joint filers, we earned too much to receive anything from the first two rounds of COVID stimulus payments, and I suspect that because of our income level and having declared her as a dependent in 2019, that is why she did not either. For 2020, we are considering not claiming her as a dependent. Am I correct that if we do so:
(1) she still will not be able to receive the $1,200 and $600 relief payments when she files her 2020 return but
(2) she will qualify for the recently approved third stimulus check of $1,400
Assuming she is entitled to the third round of payments, will the submittal of her 2020 return be the trigger for the Feds to make that payment?
Unless I am missing something, it looks like my wife and I give up a $500 tax credit to provide her with at least a $1,400 stimulus payment by not claiming her! Appreciate any feedback you can give me!!!
