Recovery Rebate for child born in 2020

[DoninGA]

The recovery rebate credit was paid out to eligible individuals in two rounds of advance payments called economic impact payments. The economic impact payments were based on your 2018 or 2019 tax year information. The recovery rebate credit is figured like the economic impact payments except that the credit eligibility and the credit amount are based on your 2020 tax year information.

You may be able to claim the recovery rebate credit only if your economic impact payments are less than your credit. This happens when:
• You are eligible but were not issued an EIP 1, an EIP 2, or neither an EIP 1 or EIP 2, or
• Your EIP 1 was less than $1,200 ($2,400 if married filing jointly) plus $500 for each qualifying child you had in 2020; or
• Your EIP 2 was less than $600 ($1,200 if married filing jointly) plus $600 for each qualifying child you had in 2020.
You don’t qualify for the recovery rebate credit if, for EIP 1:
• You received $1,200 plus $500 for each qualifying child you had in 2020,
or
• You’re filing a joint return for 2020 and together you and your spouse received $2,400 plus $500 for each qualifying child you had in 2020.
And for EIP 2:
• You received $600 plus $600 for each qualifying child you had in 2020,
or
• You’re filing a joint return for 2020 and together you and your spouse received $1,200 plus $600 for each qualifying child you had in 2020.

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf#page=57

[jwladisc]

Wouldn't changing the amount I received in my taxes be somewhat fraudulent?  Maybe I will try changing the age, going through the stimulus portion and then changing the age back before submitting for filing.  It seems like my help ticket to the IT department would trigger someone to fix their software.  I know it is a bit unique of a situation, but I am also sure I am not the only one out there with this issue.

[DawnC]

I would suggest not submitting to e-file yet as the IRS will not start accepting e-files until Feb 12th.   So, maybe wait and see if your IT ticket gets something changed or creates a workaround before that.  But yes, I am sure you are not the only one in this situation, so it will be dealt with.  

[turtlefarpos]

Has there been a resolution to this? I am in the same situation.  Dependant born October 2003 and new baby born in 2020.  I noticed when I put October 2004 I was given the $1100 for the new baby but not given anything when I left the birthday October 2003. I would love to know what I could do to remedy this situation. Thank you.

[CatinaT1]

The payments were an advance credit for 2020.  2019 information was used in sending out the payments since 2020 tax returns had not been filed at the point the stimulus payments were sent out.  They are being reconciled when you do your 2020 return.  In some cases, people may have been given a stimulus payment based on their 2019 dependents that did not qualify based on their 2020 dependents, and vice versa.  

In your particular case, you received a stimulus for a dependent that qualified based on your 2019 return (dependent was under 17 in 2019).  Now that you are reconciling your stimulus when filing your 2020 return, you only have one dependent that qualifies, your new baby.   You previously received the stimulus for 1 dependent, which based on your 2020 return is what you are entitled to.  If your other dependent would have been under 17 at the end of 2020, you would have received additional stimulus money for the additional qualifying child.

[eapoole88]

I am having this issue too...

Now, I filed my taxes and it indeed said I am owed $1100 for my child also born in February. Is this amount supposed to be given with the refund or is it a separate payment that is coming?

[DoninGA]

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@eapoole88 wrote:

I am having this issue too...

Now, I filed my taxes and it indeed said I am owed $1100 for my child also born in February. Is this amount supposed to be given with the refund or is it a separate payment that is coming?

---

It is included in the 2020 federal tax refund

[eapoole88]

Mine definitely wasn't! I only received the refund amount that was stated I'd receive before I even added my child in 

[VolvoGirl]

If it showed up on your return on line 30 it is included in your refund or reduced a tax due.   No it does not come separate.  

[jwladisc]

So even though the law was written and it is stated on the IRS page that a child under 17 on Jan 1, 2020 qualifies for stimulus, that because my son turned 17 on 9/2020, he shows up on my 2020 taxes as a non-qualifying child, which in turn means, the number of my qualifying dependents didn't change and thus again, I do not qualify for a recovery rebate?  Sounds odd that the law was written to include him for the stimulus, but for the taxes he no longer qualifies because it is based on the number of dependents for 2020 and not the law...

[xmasbaby0]

Sorry----the law for the first and second stimulus check followed the same criteria as the criteria to get the child tax credit.   If your child was 17 even on the last day of 2020, you do not get the child tax credit for that child nor do you get the stimulus money for that child.   The age limit was waived for the third stimulus check---so you can get the $1400 for a dependent /child of any age.

On your 2020 tax return if your child was 17 before the end of 2020 you get the $500 credit for other dependents.