topic New stimulus question for EIC vs dependents in Deductions & credits

New stimulus question for EIC vs dependents

melly10 — Sun, 07 Mar 2021 16:29:47 GMT

Hi, I have 1 dependent (a child under 17) on my 2020 filed taxes and 1 adult brother that lives with me that allowed me to get earned income credit, he is my disabled brother.

Does he still qualify to receive the new stimulus under me since I have the EIC or will he receive a paper check on his own since he doesn’t file taxes?

thanks!

Re: New stimulus question for EIC vs dependents

DanaB27 — Sun, 07 Mar 2021 18:08:14 GMT

If you claim your brother as a dependent then you might qualify to receive the third stimulus payment for him since currently there isn't a age limit for the third stimulus like it was with the first and second stimulus payment (dependent had be 16 and younger to qualify).

Your brother cannot qualify for the stimulus payment on his own if he is claimed as a dependent on your return.

Re: New stimulus question for EIC vs dependents

melly10 — Sun, 07 Mar 2021 17:26:31 GMT

Thank you..but the 2020 taxes has already been filed and accepted and under dependents it only lists the one child under 17. However, in the EIC section it lists both child and disabled adult brother info.

So, is he a dependent (adult disabled brother) since he is under the EIC section or his own adult eligible for the stimulus on his own?

Re: New stimulus question for EIC vs dependents

SamS1 — Sun, 07 Mar 2021 18:04:48 GMT

If he he had gross income of more than $4300, then he would not be considered a dependent. Gross income includes all income not exempt for tax. So if he is receiving social security disability only, that would not be considered taxable income and you could claim his as a dependent if he meets the other thresholds for a qualifying relative (Support test). Your brother could still fill his own tax return, if you did not claim him as a dependent to claim the $1400 stimulus.

We don't have specific information on the income qualifications or procedures for the third stimulus payment because the measure just passed Congress.  If you had issues receiving your earlier stimulus, then the best way to ensure that you are one of the first to receive any future stimulus payments is to file your 2020 tax return as early as possible and use direct deposit so that the IRS will have your updated information.

You can find the most up to date information from the IRS here, and updates from TurboTax here as they develop.

Re: New stimulus question for EIC vs dependents

melly10 — Sun, 07 Mar 2021 18:14:56 GMT

Thank you so much! Makes a lot of sense now!