COVID Stimulus for Dependents

[WhitneyFamily0910]

We have two children claimed as dependents since 2015, however we didn't receive the first or second stimulus checks for them. TurboTax isn't allowing us to claim the Recovery Rebate Credit. How can we fix this?

[WhitneyFamily0910]

To clarify, our AGI is below the "married filing jointly" cutoff for married filing jointly, too.

[DawnC]

How old were they on 12/31/20?    Only dependents 16 years old and younger qualify you for the additional credit.   They also have to have an SSN that is work eligible to qualify.   On page 1 of your Form 1040, what column is checked off for (4) in the dependents section?  

[WhitneyFamily0910]

Thanks for the reply! They were 8 and 5 respectively. The work eligibility thing confuses me, as we have friends that have kids the same age that received the stimulus for the kids.

[WhitneyFamily0910]

Just checked my 2019 return and "credit for other dependents" is checked off. Did I screw up on previous returns?

[DawnC]

Are they your children?  Or have you adopted them?   If they are not blood-related or adopted, the ''other dependent'' category is correct.   But if this is the case, then they don't qualify as your qualifying children, they only qualify as qualifying relatives.   Qualifying relatives won't qualify you for the recovery rebate or the Child Tax Credit even if they are within the age range to qualify.  I am not sure what you mean regarding the ''work eligibility'' but there is no requirement for you or your spouse to work for the recovery rebate.  There is a work requirement for the Dependent Care Credit, but not for the Recovery Rebate.

Who can I claim as my dependent?   This link explains the differences between qualifying children and qualifying relatives.  They are confusing titles that the IRS uses since qualifying relatives don't have to be relatives and qualifying children need to be related.  I didn't write the guidelines 😉  

If they truly are ''other dependents'' then, no, you don't need to amend anything, but if they are your qualifying children, then you will definitely want to amend your previous tax returns.   As other dependents, they only qualify you for the $500 Other Dependent Tax Credit.  

[WhitneyFamily0910]

They are both blood-related. So to make sure I understand what you're saying, I need to amend my 2019 tax return to change that indication on Form 1040 so that they are listed correctly. And then I can claim the Recovery Rebate. Am I correct with that assessment?

[KrisD15]

No, 

you shouldn't need to do that. 

If you claim the children on your 2020 tax year return, enter what you received, and if you didn't get the full amount previously, the credit for what you are still due should show on Form 1040 line 30.

I suggest you go back into the "Personal Information" section and re-answer the interview questions concerning the children. If TurboTax pulled your 2019 information into the 2020 TurboTax program, they may still show as "Other Dependents" rather than your dependent children. 

If it ends up you do need to edit an answer, go back and reenter the stimulus information. 

Everything for getting the remainder of the stimulus payments should be done on your 2020 tax return. 

(it may be necessary to amend your 2019 return if the children were not properly declared for other reasons, like the Child Tax Credit, but not for the stimulus)  

TO GET TO THE STIMULUS SECTION OF TURBOTAX:

Go into your account and click "Tax Home"

On that screen click "Other Tax Situations"

When the drop-down opens, click "Let's Get Started" or "Review/Edit" to move forward 

There may be a delay when opening to this next screen

Scroll to the bottom of this screen and click "Let's keep going" 

The next screen should read "Let's make sure you got the right stimulus amount" (If not, click continue to move forward until you do get to that screen)

Scroll down and click "Continue"

The next screens will ask if you received the stimulus, which ones and how much. 

The software will calculate a credit if applicable. 

TO VIEW THE RECOVERY REBATE CREDIT:

Click   Tax Home

Click   Review   if necessary to get Tax Tools on the left side-bar

Click   Tax Tools   on the left side-bar (you may need to use the scroll bar for the left side-bar to see this)

Click   Tools   on the drop-down list

Click    View Tax Summary   on the Tools Center screen

When you do this,   Preview my 1040   appears on the left side-bar            

Click   Preview my 1040   on the left side-bar

Scroll down and look at line 30 on the 1040 for your “Recovery rebate credit”

[WhitneyFamily0910]

Thanks @KrisD15 and @DawnC! I went back and had them checked off as ineligible for employment. As soon as I did that and went back to the review section, the amounts we were supposed to have received changed. I entered the actual amounts received and it showed us as qualified for the Recovery Rebate. Thank you both so much for your help!