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bdhobbs1
Returning Member

Credit for other dependents not applied, now I owe

I have 3 non-relatives who my wife and I support more than half of there living expenses.

 

In 2019, we had 2 non-relatives both over age 17 and the IRS didn't apply the credit for other dependents and now we owe the $1000.

 

In 2020, we had 3 non-relatives both over age 17 and the IRS didn't apply the credit for other dependents and now we owe the $1500.

 

Additionally, the IRS sent Stimulus Checks to all 3 non-relatives.

 

We've received $7000 in Stimulus, even though $6400  is all that should've been sent to this point in time.

 

My questions are:

Do I dispute the demand for payments?

If I dispute the request for payment, will they go after the non-relatives and make them return the stimulus checks they received?

Or should I just pay the $2500 and forget about it?

 

Any suggestions will be appreciated.

Thanks

4 Replies

Credit for other dependents not applied, now I owe

You say you paid for over half the support for several non-relatives---but you do not say if those non-relatives had over $4300 of income not counting Social Security---or where those non-relatives lived, so we cannot be sure if you could claim them for the credit for other dependents.   If a non-relative did not live with you for the whole year, you cannot claim them.   We do not have enough information.

 

And...you do not say if those people filed their own tax returns that said they could not be claimed as someone else's dependent.   They may have filed their own returns, resulting in them getting stimulus money.

 

 

Your stimulus money is based ONLY on your 2020 tax return.   The IRS is not going backwards now to look at 2019 or who you claimed for 2019.   The recovery rebate credit is based solely on your 2020 income and the dependents claimed on your 2020 return.   You cannot get the RCC for a dependent over the age of 16.   There is no place to enter anything on a 2020 income tax return for the 3rd stimulus check.   The 3rd check is the ONLY one that anyone can get for claiming a dependent who is over the age of 16.

 

So...provide some more information about those "non-relatives"   ---- we do not know enough to discern whether you claimed them correctly or not.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Credit for other dependents not applied, now I owe

WHO CAN I CLAIM AS A DEPENDENT?

 

You can claim a child, relative, friend, fiance (etc.) as a dependent on your 2020 taxes as long as they meet the following requirements:

Qualifying child

•They are related to you.

•They cannot be claimed as a dependent by someone else.

•They are a U.S. citizen, resident alien, national, or a Canadian or   Mexican resident.

•They are not filing a joint return with their spouse.

•They are under the age of 19 (or 24 for full-time students).

    • No age limit for permanently and totally disabled children

        They live with you for more than half the year (exceptions apply).

Qualifying relative

•They don't have to be related to you (despite the name).

•They cannot be claimed as a dependent by someone else.

•They are a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.

•They are not filing a joint return with their spouse.

They lived with you the entire year.

•They made less than $4300  (not counting Social Security)

•You provided more than half of their financial support. More info

When you add someone as a dependent, we'll ask a series of questions to make sure you can claim them.

Related Information:

Does a dependent have to live with me?

What does "financially support another person" mean?

Can I claim a newborn baby?

 

 

 

CREDIT FOR OTHER DEPENDENTS

https://ttlc.intuit.com/questions/4499708-what-is-the-500-credit-for-other-dependents-family-tax-cre...

 

https://ttlc.intuit.com/community/children-dependents/help/what-does-financially-support-another-per...

 

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
bdhobbs1
Returning Member

Credit for other dependents not applied, now I owe

All the below applies and that's why I posted my question.

 

Related or not, the person you’re claiming as a qualified relative must also fit these criteria:

  • They haven’t already been claimed for the Child Tax Credit or Credit for Other Dependents, either by you or by anyone else;
  • They are a U.S. citizen, U.S. resident alien, or U.S. national;
  • They aren’t filing a joint return with their spouse;
  • They either lived with you for the entire year or are related to you;
  • They have less than $4,300 gross income in 2020 (nontaxable Social Security doesn't count); and
  • You provided more than half of their financial support.
bdhobbs1
Returning Member

Credit for other dependents not applied, now I owe

I supported each member more than 50%

They all have no earnings and cannot be claimed by anyone else

None of them have filed a tax return

They all lived with me all year

 

Thanks!

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