Credit, Letter 6475, and Divorce

[DouglasB12]

In March of 2021, the 3rd stimulus payment of $2,800 was deposited into my individual checking account via direct deposit.  However, my wife and I divorced in the time between when we filed taxes and that stimulus was received. Half of that money should have been hers, so I transferred that amount to her.  That stimulus payment was based on the filing status of Married with 1 dependent.  The dependent is my son from a previous relationship.

In the Turbotax Home and Business program, under Personal --> Federal Review, there is a screen that says "Let's Double Check The Amount You Received" 
Based on your AGI of 29598, you are eligible to receive $2800. Is this the amount you received?

Together, my ex-wife and I did receive $2800 yes. But I only received half of that amount.  I do not recall ever receiving the IRS letter 6475, so I had to look into my bank statements to confirm that the amount received was $2800.

How do I answer the question on that screen in the program? If I answer NO, and enter the amount received as $1400, my refund goes up dramatically.  If I answer "yes", doesn't that mean that my ex-wife is going to be able to claim a bonus $1400 that should have gone to me?

On the IRS website, I looked at the Economic Impact Payment Information tab for 2021. Under that section the information listed was: Economic Impact Payment 3      $1,400.00

[DianeW777]

You should answer 'No' and then enter only the $1,400 that is applied to you.  Likewise, your ex-spouse should enter her $1,400 assuming, as you said, that each of you had your own portion.  And also, you indicated the IRS website show only your $1,400 under your account. It should show the same for her.

This information assumes you are filing single.  After your complete that portion of your return you should use the 'Preview My 1040' to check line 30.  It should show a zero or blank entry.

You can view your entire return or just your 1040 form before you e-file:

1. Open or continue your return.
2. With the Tax Tools menu open, you can then:
   • View only your 1040 form: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu.
3. Scroll to line 30.

 

[DouglasB12]

Thank you Diane. I am filing head of household rather than single. I followed your advice and entered the $1400.  Checking line 30 of form 1040 though it shows $1,400 there also. It seems like that would make more sense. Is that perhaps what you meant rather than saying it should show zero?

[JamesG1]

As head of household, are you claiming the dependent son as a qualifying child? 

How has the stimulus payment for the son been accounted for? 

Is the $1,400 on line 30 the $1,400 for your dependent son as a qualifying child?

You are able to view this Recovery Rebate Credit on line 30 of the Federal 1040 under Tax Tools / Tools / View Tax Summary / Preview my 1040.

[DouglasB12]

As Head of Household, I am claiming my dependent son as a qualifying child (age 15).

You asked how the stimulus payment for my son has been accounted for. Are you referring to the 250/ month for 6 months, followed by the $1500 included in the refund? I am receiving $2011 on line 27a for earned income credit. Line 28 (Refundable child tax credit) from form 8812 shows $3000.  Otherwise the last of any type of Pandemic/Covid stimulus I received came in March of 2021 which was the $1400 as mentioned originally in my question.

I don't know if it is relevant or not, but the IRS still has not processed my 2020 tax return. His mother initially claimed our son on taxes when she shouldn't have. She did file an amended tax return in April of last year removing him as a dependent. The IRS still has not processed her amended tax return. Since her amended return removing him as a dependent was not processed, my returns could not be filed electronically. I had to send in a paper return in October at the end of the extension deadline.  I did not receive the $250 month advance tax credit for a child, and my ex-wife claims that she did not receive that either. 

I don't know what to tell you when you ask about the source of the $1400 on line 30. The program put that number there. Clicking on it, the "Data Source" is greyed out and not clickable. Quick zoom takes me to the 1040 /1040SR worksheet but does not give me any context beyond that.

[DMarkM1 · Accepted solution]

Yes, your Recovery Rebate Credit (line 30) and refundable Child Tax Credit (line 28) appear to be correct with regards to the situation you describe.   You and one dependent would be eligible for $2800 and you already received $1400.  The remaining $1400 is on line 30 of your 1040.  

Further, you mention a Child tax credit of $3000 which is correct for your dependent son age 15.  

[MPNISBETT]

Hello!

Experiencing the same situation. Never received the letter 6475. Only have the letter 6419 for the CTC (Box 1: $1800 and Box 2: 1) and file as HEAD OF HOUSEHOLD. Did receive the $2800.00 in 2021. How do I respond to the Federal Question: 
Based on the tax info you entered and your adjusted gross income of $32, 650, you're eligible for a third stimulus payment of $2,800.00. Does this match the amount on your letter 6475? 

Do I click YES or NO?

[PattiF]

Don't answer yes or no just yet. The IRS began sending Letter 6475 in late January, and your letter may be delayed in the mail.

You can check online with the IRS to see the information about your Economic Impact Payments and the amount that is on Letter 6475. You'll have to create or use your Online Account for this information.