topic COVID tax credit in Deductions & credits

COVID tax credit

loch0 — Wed, 16 Dec 2020 20:27:52 GMT

For 2019 tax season my 3 children each filed their own taxes and i claimed all 3 as dependents. Their current ages are 16,20 and 22. My income is such that i do not get any benefits from having dependents. And also did not receive any COVID stimulus.

If for 2020 taxes, they again file their own taxes, but i do not claim any of them as dependents, will all 3 get their own $1200 COVID credit? I can't find any lower age limit for someone who otherwise meets the requirements (not claimed as a dependent, low enough income, has a SSN)

Re: COVID tax credit

Anonymous — Wed, 16 Dec 2020 20:36:49 GMT

a dependent can not receive the credit. the fact you did not claim them is only relevant if you in fact were not entitled to claim them. if you are entitled to claim any of them then on their own returns they must mark that they could be claimed as a dependent

here are the rules for taxpayer's children

you are entitled to claim your child as a qualifying child if all these tests are met
• he/she has the same principal abode as you for more than ½ the tax year. Temporary absences like for school are ignored
• if he/she is not a full-time student, he's under 19 at the end of the tax year. If a full-time student, he's under 24 at the end of the tax year.
• he/she hasn't provided over ½ his own support
• he/she didn't file a joint return unless there was no tax liability but merely filing joint to facilitate refund of taxes withheld or estimates paid

or you can claim him/her as a qualifying relative if all these tests are met
• his/her gross income for 2020 less than $4,300
• you provided over ½ his support
• he isn't a qualifying child of another taxpayer

Re: COVID tax credit

loch0 — Wed, 16 Dec 2020 20:45:52 GMT

Thanks. But do you have a source for that?

I cannot find anywhere that suggests the criterion is whether you COULD be claimed as a dependent. Rather, the criterion is listed rather universally as whether you ARE claimed as a dependent.

Re: COVID tax credit

loch0 — Wed, 16 Dec 2020 20:47:35 GMT

even Intuit's own calculator says that

https://turbotax.intuit.com/stimulus-check/

Re: COVID tax credit

Opus 17 — Wed, 16 Dec 2020 21:15:02 GMT

@loch0 wrote:

Thanks. But do you have a source for that?

I cannot find anywhere that suggests the criterion is whether you COULD be claimed as a dependent. Rather, the criterion is listed rather universally as whether you ARE claimed as a dependent.

If a person can be claimed as a dependent, they must check the box on their tax return that says "I can be claimed as a dependent by another taxpayer" even if they don't want to be claimed. That's been the law for a long time.

Under the CARES act, the rebate will not be paid to someone who checks the box for "I can be claimed as a dependent." This is specified in writing under division B title 1 of the CARES act and enacted as 26 U.S. Code § 6428(d)(2).

(d)Eligible individualFor purposes of this section, the term “eligible individual” means any individual other than—

(2) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins,

This is summarized on the IRS web site here:

The IRS says,

You are not eligible for a payment if any of the following apply to you:

You may be claimed as a dependent on another taxpayer’s return (for example, a child or student who may be claimed on a parent’s return or a dependent parent who may be claimed on an adult child’s return).

https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-a-eip-eligibility

Re: COVID tax credit

loch0 — Wed, 16 Dec 2020 21:29:54 GMT

thanks

Re: COVID tax credit

NCperson — Wed, 16 Dec 2020 21:38:33 GMT

and note that the IRS statement says 'may'....this trips a lot of people up.

it doesn't say 'did'

the question is MAY they claim you. if they CAN claim you and didn't (which is the same thing as 'may'), the dependent is not eligible for the $1200.