3rd Stimulus Payment

[Mom of 36]

We received the 3rd stimulus payment for my son, because we claimed him on our 2019 taxes.  When he filed his own taxes for the first time in 2020, he received the 3rd stimulus payment.  When I enter the amount that I received from Letter 6475, which includes my son's $1,400, it deducts the money from my refund.  It also says that I shouldn't have received the full $2,800.00 for my husband and me?  There would be no reason that we would not have each received our $1,400.00, as we are under the AGI threshold in both 2019 and 2020?  I have seen many discussions stating that we do not have to return the stimulus payment that we received for our son, but Turbo Tax deducts the money when I enter the amount from my Letter 6475?

[JillS56]

Do not include in your return the full amount from your letter.   If you are not claiming one of the individuals that you received the stimulus funds for, then do not report the stimulus amount for that person.   

Your son should have indicated that he received the $1,400 on his return since you did receive the funds.   However, the IRS has been matching social security numbers and he may have claimed that he did not get the $1,400, when the IRS checks his social security number against the database they will see that someone did receive the $1,400 and it will be deducted from his refund.   

If you are filing MFJ with your husband then report that you received $1,400 and your husband received the $1,400 do not include the amount for your son.

[Mom of 36]

My son did receive his $1,400 stimulus payment when he filed his taxes for the first time in 2020.  He also received a Letter and reported it on his 2021 return.  So we both received the 3rd stimulus for him.  When filing my 2021 taxes, I entered the total amount that we received.  I wondered if it would take the $1,400 back that I received for my son; even though I've seen many threads saying that neither check has to be returned?  If it would have only taken the stimulus for my son, I wouldn't have questioned anything, but it then took more back because of a higher AGI in 2021?  My AGI in 2019 and 2020 were below the threshold.  Can they request some of the money back if my 2021 AGI is higher?  It said that we didn't qualify for the full $1,400 each?

So my questions are:

Does one of the 3rd stimulus payments have to be returned?

Since I am not claiming my son in 2021, I should not include the amount that I received for him?  Everything that I've read says that not entering the amount on our letters will cause problems.  He filed his 2021 taxes and entered the $1,400 amount stated in his Letter.

Can they take a portion of my husband's and my 3rd stimulus back because our AGI in 2021 was higher, when we qualified in 2019 and 2020?

Thank you!

[JillS56 · Accepted solution]

They are not going to request the stimulus money back but they can make an adjustment on your tax return essentially paying back part of the stimulus you were not entitled to, but you are not going to have to send money back.   The repayment will be part of your tax return.  

You were eligible for the 3rd stimulus payment  if you were a U.S. citizen or U.S. resident alien during 2021, you were eligible for $1,400 ($2,800  for a joint return), plus $1,400 for each qualifying dependent, if you (and your spouse if filing a joint return) were not a dependent of another taxpayer on a 2020 tax return, have a valid Social Security number (SSN) (see exception when married filing jointly and exception for qualified dependents) and your adjusted gross income (AGI) did not exceed:

• $150,000 if married and filing a joint return or if filing as a qualifying widow or widower
• $112,500 if filing as head of household or
• $75,000 for eligible individuals using any other filing statuses, such as single filers and married people filing separate returns.

Payments were phased out – or reduced – above those AGI amounts. This means taxpayers did not receive a third payment if their AGI exceeded:

• $160,000 if married and filing a joint return or if filing as a qualifying widow or widower
• $120,000 if filing as head of household or
• $80,000 for eligible individuals using other filing statuses, such as single filers and married people filing separate returns.

You were not eligible for a payment if any of the following apply:

• You could be claimed as a dependent on another taxpayer’s 2020 tax return
• You were a nonresident alien.
• You did not have a valid SSN issued to you by the due date of your tax return (including an extension to October 15 if you requested it).

Also, payments were not made to estates or trusts or for individuals who died before January 1, 2021. 

In your case, because your income falls into the phase-out threshold you should report the entire amount received.   You would not have been entitled to the full $1,400 for your son.   

Yes, they can take a portion of your and your husband's and your dependent's 3rd stimulus payment if your income exceeded the income threshold and/or you fell into the phase-out threshold.

No, you do not have to return one of the stimulus payments, the adjustment will be made with your tax return.

FAQs for the 3rd Stimulus Payments  FAQ's for the 3rd Stimulus Payments

[Mom of 36 · Accepted solution]

Thank you!  That was very helpful.