You'll need to sign in or create an account to connect with an expert.
Which state?
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:
--------------------------------------------------------------------------
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.)
California
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.
Thanks for your help.
Everyone stay safe.
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.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
dogz5_Mom1
New Member
fillini00
Level 2
diana1203-
New Member
BRB99
New Member
seemabimran123-g
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.