STIMULUS QUESTION

[LOFTINAL97]

I was claimed as a dependent of my mother taxes for 2018 and 2019.  She did not receive any stimulus money for me because I am 23.   For 2020 I am on my own and living separate and paying my own bills.

I am confused on what to check.  It asked if i received the the first 2 stimulus checks.?  Do I answer no since i didnt receive a check?  Then it tries to add the $1800 to my federal refund that I am not entitled to so I am confused on how to answer this question.

Any suggestions?

[xmasbaby0]

You do answer NO---you did not receive a stimulus check.   And your mother did not receive a stimulus check for you since parents only got stimulus checks for children under the age of 17 at the end of 2020.    When you complete the recovery rebate credit section you can say that you did not receive either stimulus check and the stimulus amounts will be added to line 30 of your 2020 tax return;  then it is included in the refund amount that ends up on line 34.

The 3rd stimulus check is a separate check and is not entered anywhere on your 2020 return.  You should get it later.

[LOFTINAL97]

Thanks for your quick response.  I am wondering why it is adding $1800 to my tax refund because I was not entitled to this money and was over the age of 16. 

Will the IRS look into this before sending my refund because I was claimed as and dependent on e her taxes for 2018 and 2019 even though she did not get a stimulus check for me.  I hope they  deduct this money before they send my refund because it doesn't belong to me.  

[VolvoGirl]

Yes! You do qualify to get it!  

If you were claimed as a dependent in 2019 but not in 2020,  you can still get the Recovery rebate credit on your 2020 return even if your parents got it for you. 

[NCperson]

@LOFTINAL97 - it is confusing on how this works, but the money is yours.

when the IRS paid out the 1st two stimulus payments they used 2019 (or 2018) tax return as the basis of an ESTIMATE of what you were due. And you received nothing as you were a dependent on your parent's tax return those two years. 

what you are ACTUALLY due is based on the 2020 tax return,

You ACTUALLY are due $1800 and your ESTIMATE was $0 (because you didn't receive any stimulus payments), so the $1800 shows up on Line 30 as a recovery credit. 

If it worked out the other way around and the ESTIMATE was higher than the ACTUAL, then Line 30 would be zero because the law was passed to state that if anyone received too much ESTIMATE, there was no requirement to return it

it's that simple.