topic Stimulus Check Overpayment in Deductions & credits

Stimulus Check Overpayment

TripleJ11 — Fri, 02 Apr 2021 21:41:58 GMT

For 2019 tax year, my parents claimed me as a dependent, and I did not receive the first stimulus check. For 2020 tax year, I filed independently. I received the $1200 from the first stimulus through the Recovery Rebate Credit. I believe this is right based on my research. The stimulus checks sent out in 2020 were an advance on the 2020 tax return, so I should receive the stimulus as someone filing independently in 2020.

I also received the third stimulus check for $1400 soon after filing my return. My parents waited maybe a week longer to file their return. The IRS sent them an additional $1400 on their third stimulus check based on their 2019 tax return, where I was claimed as a dependent. What should we do at this point? Could this be resolved in their 2021 tax return?

Re: Stimulus Check Overpayment

VolvoGirl — Fri, 02 Apr 2021 21:44:59 GMT

Actually you should have got 1800 on your 2020 return 1200+600. Wonder why you didn't get the second amount?

For the 3rd 1400 check......

That's ok if you both got it. You got it based on your 2020 return and she must have got it based on 2019 when she claimed you. You can both keep it.

Re: Stimulus Check Overpayment

TripleJ11 — Fri, 02 Apr 2021 21:53:21 GMT

Thanks. I did receive the whole $1800, but I was thinking more about the third check.

Re: Stimulus Check Overpayment

NCperson — Sat, 03 Apr 2021 02:26:56 GMT

@TripleJ11 - let me explain how this works and it's correct that they got $1400 and so did you.

The third stimulus is based on your 2020 tax return and if that is not available then your 2019 tax return.

Since you claimed independent on 2020, you got the $1400,

but I bet your parents did not file their 2020 yet, so the IRS used 2019 as the basis of their stimulus. And since you were a dependent on their 2019 tax return, the IRS saw that and paid $1400 to your parents for their dependent (you!).

that all is all legal and the way it works. Neither you or your parents will be asked to return either of the $1400.

Re: Stimulus Check Overpayment

Thoma321 — Fri, 07 May 2021 00:49:14 GMT

Why is it okay that they both got it, and will you have to pay it back come 2022 when filing for 2021.

Re: Stimulus Check Overpayment

Critter-3 — Fri, 07 May 2021 00:57:53 GMT

YES it is OK and that is just how the IRS wrote the law and neither of you will have to pay it back ... a legal double dipping once again.