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carlandjoette
Level 2

Can you file fed and state (ca) taxes with diff dependence?She only rec's ssa-di. She is my adult daughter.Use her on my state as a deduction but not on fed for stimulus?

She wont get the stimulus if she's a dependent on my taxes. I can deal with paying more on fed taxes but if I need to do both it wont be worth it tax wise for me. She could really use the money for care.
6 Replies
hbl3973
Level 8

Can you file fed and state (ca) taxes with diff dependence?She only rec's ssa-di. She is my adult daughter.Use her on my state as a deduction but not on fed for stimulus?

Which state?

hbl3973
Level 8

Can you file fed and state (ca) taxes with diff dependence?She only rec's ssa-di. She is my adult daughter.Use her on my state as a deduction but not on fed for stimulus?

carlandjoette,

While it is useful to provide your state when asking in the State Taxes forum, in your case, you are out of luck, at least this year.  (See later for how she might claim it as a tax credit in April 2021.)  Your daughter won't qualify for a stimulus payment if, indeed, she is an actual dependent, i.e. that you cover more than half her living expenses.. The IRS website (https://www.irs.gov/coronavirus/economic-impact-payment-information-center) states:

-----------------------------------------------------------------------------

A1.  You may be eligible to receive a Payment if you:

  • Are a U.S. citizen, permanent resident or qualifying resident alien;
  • Cannot be claimed as a dependent on someone else’s return;
  • Have a Social Security number (SSN) that is valid for employment (valid SSN); and
    • Exception: If either spouse is a member of the U.S. Armed Forces at any time during the taxable year, then only one spouse needs to have a valid SSN
  • Have adjusted gross income below an amount based on your filing status and the number of your qualifying children.

--------------------------------------------------------------------------

So, even if you opt not to claim, the fact that she can be claimed prevents her from receiving a stimulus payment.

 

However, the stimulus payment is actually an advance payment of a 2020 tax credit on returns filed in April 2021.  This means that if on your 2020 taxes your daughter cannot be claimed as a dependent, she would qualify for the tax credit.  I pinged a tax expert whose column appears in our local paper and she assures me that it is a refundable credit, meaning you get the money even if you owe no tax.  (I had read the CARES Act and it seemed to be written as a nonrefundable tax credit but those who received an advance payment did not have to pay back any amount that exceeded their tax.)

carlandjoette
Level 2

Can you file fed and state (ca) taxes with diff dependence?She only rec's ssa-di. She is my adult daughter.Use her on my state as a deduction but not on fed for stimulus?

California

hbl3973
Level 8

Can you file fed and state (ca) taxes with diff dependence?She only rec's ssa-di. She is my adult daughter.Use her on my state as a deduction but not on fed for stimulus?

While your strategy won't work to gain a stimulus payment for your daughter, you are perfectly within your rights to claim or not claim her as a dependent on state and not federal or vice-versa in CA.

carlandjoette
Level 2

Can you file fed and state (ca) taxes with diff dependence?She only rec's ssa-di. She is my adult daughter.Use her on my state as a deduction but not on fed for stimulus?

Thanks for your help. 

Everyone stay safe.

hbl3973
Level 8

Can you file fed and state (ca) taxes with diff dependence?She only rec's ssa-di. She is my adult daughter.Use her on my state as a deduction but not on fed for stimulus?

You're very welcome and thanks for the good wishes.  It's also nice that fed and CA both moved their tax due deadlines to July 15.

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