Stimulus and split custody

[Ashley8494]

We alternate years on claiming my son and step daughter. We received the stimulus for my step daughter as we claimed her 2019. We are not claiming her this year but we are claiming my son. When I go to the recovery rebate credit it says we received the correct amount even though I never received it for my son. Can someone explain please?

[kamper505]

Will someone from TurboTax please address this issue? I'm suspecting their stimulus rebate calculation is not taking into account for custody agreements. In 2019, I didn't get to claim my two dependent children on my tax return because of my custody agreements. Now, for my 2020 return, I am claiming both children. When I get to the section in the desktop version where I enter the actual stimulus amounts that I received, I think the program is saying I'm due the amounts from 2019 that I would have received had I filed claiming both children. I don't think this is correct, and I'd like to make sure the program is providing me the correct return amounts before I file. I certainly don't want a hassel with the IRS.

[DianeW777]

The intent is what seems clear. The IRS page(s) about the stimulus does not seem to have a clear FAQ about this situation, however I do see other websites that indicate two payments for the same child or children is not the intent.

Although the stimulus payment was sent out based on the 2019 (or 2018) tax return, it is reconciled on the 2020 return. Some taxpayers are still getting checks, however there are some caveats. 

Since the other parent claimed the children on their tax return for 2019, the reconciliation tax year is 2020. This means that since you are claiming them in 2020, it will be included with your tax return and added to the payments (1040, Line 30) of your tax return.

Key Point: Only one parent could have the children live with them for more days than the other parent. And only that parent can meet the test below.  EIP: Qualifying Child Requirements

• Child's Residency: Child must have lived with the individual eligible for the Payment for more than half the tax year.
  • Even though 2020 did have 366 days, if you actually determine you each had them exactly half of the year, then neither of you would qualify for residency because they didn't live with either parent more than half of the tax year.
• By checking the amount of stimulus calculated by TurboTax, you can agree with the payments received to eliminate additional funds being released. 

You can try contacting the IRS about this to see how this would be handled in your situation specifically. If you do, be sure to take the employee number and write down their answer to keep with your file.

• (January - April)  800-829-1040 - Call early or late for shortest wait times.
  • Telephone service wait times can average 15 minutes. Some telephone service lines may have longer wait times.
  • Telephone service wait times are higher on Monday and Tuesday, during Presidents Day weekend and around the April tax filing deadline.

[kamper505]

Thank you for your reply. Would you please explain this further - "By checking the amount of stimulus calculated by TurboTax, you can agree with the payments received to eliminate additional funds being released"?

How do I make sure the amount of stimulus calculated for the dependents is not double what it should be on my TurboTax return?

Thanks.

[DMarkM1]

The TurboTax calculations are correct.  The Recovery Rebate Credit on your 2020 tax return is based on 2020 tax return information only.  Any stimulus payments received by someone else as a result of a prior year return have no effect on your 2020 tax return.  

If you are claiming a qualifying dependent child age 16 or under on your 2020 tax return then you are eligible for the child stimulus payments in the form of a Recovery Rebate Credit.  

For example, a single filer with one dependent child under age 16 on the 2020 tax return is eligible for $1200 plus $500 for round one and $600 plus $600 for round two for a total eligible amount of $2900.  They will report receiving $1200 and $600 earlier because there was no child on the 2019 tax return.  The remaining $1100 is credited to the tax return on line 30. 

Here is a link with more information on the Recovery Rebate Credit. 

Having said that, you can put the stimulus amounts someone else received in the boxes if you wish to eliminate the credit on your return. 

[Maggiemaggie]

Hi there. Did you ever get an answer to this question? I'm going through the same exact thing with my childs father and cannot get a straight a straight answer from anyone. He got the original 500 for our son based on 2018 taxes and the tax program is trying to give it to me since I claim him 2019 and 2020. 

I also do not want my return held by the irs. 

Thanks!!!

[Maggiemaggie]

Hi there. Did you ever get an answer to this question? Going through the exact same thing with my son and his father. It's fairly maddening. 

[DMarkM1]

Yes, if you are claiming a qualifying dependent child on your 2020 tax return, you will be eligible for a Recovery Rebate Credit for that child on your tax return.  What someone else received does not go on your tax return.  You will only indicate the stimulus payments you actually received.   

Here is a link to more information on the Recovery Rebate Credit.