I can potentially claim 3 adult dependents on my 2020 1040. Why would I not claim them as dependents to get a $500 credit and then have them apply for the stimulus checks?
Dependents do not receive stimulus checks. If those adults are claimed as dependents on your return they are not eligible to receive a stimulus check... So you had better be sure they can be claimed on your return before you do that. Are you actually paying for over half of their support?
Here are the rules for claiming someone for the credit for other dependents---it includes paying for over half the person's support.
CREDIT FOR OTHER DEPENDENTS
If someone could be your dependent, you can choose to claim them or not.
If you don't claim them, this does not mean they are eligible to file and claim themselves, they would still need to select that someone COULD claim them as a dependent. In that situation, no one would get a stimulus payment for them.
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I have two students (Adult Dependents) and with my income, I do not qualify for the stimulus payments. If I pay half of their expenses and do not claim them on my taxes will they qualify for the $1400 stimulus check?
It looks like my taxes will increase by $500; however they will get $1400. As of now, they do not qualify due to my income.