College Student Children and Covid Relief Stimulus Checks

[Warren67]

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!!! 

[MinhT1]

You do not pick and choose whether you claim your daughter as a dependent.

If she is under 24 and a full time student and you provide more than half of her support for the tax year, you can claim her as a dependent. If you do not claim her, then you lose the Other dependent credit of $500 and you cannot claim her education credit from his form 1098-T (but you may be disqualified by income).

On her own tax return, she is asked the question whether she paid more than half of her own support. If the answer is No, then she has to say that she can claimed as a dependent by someone else. And she will not be eligible for the stimulus payments. As someone who can be claimed as a dependent but is not actually claimed, she can claim the non-refundable part of the American Opportunity credit, but not the refundable part.