Disabled adult dependent

[Sandy35]

My sister claims her son as a disabled adult dependent.  He is on Social Security and pays more than 50% of his support. TurboTax has him listed as "Nondependent-for EIC/dependent care only".  However, my sister’s third stimulus check did not include the 1,400 for her son.  He did not receive a stimulus check for the 1st or 2nd round. Does the IRS tax code recognize him as a dependent?  I cannot find any information on how the IRS recognizes the above category.  I suspect that he is a nondependent and can apply for the stimulus money for himself. 

[LenaH · Accepted solution]

Yes. If he provides more than half of his own support, then he is not a dependent and should not be claimed by your sister. He should file in 2020 (indicating that he cannot be claimed as a dependent) and receive the Recovery Rebate Credit. The Recovery Rebate Credit is for taxpayers who did not receive the first two stimulus payments or who are eligible for more of a payment due to their 2020 tax return information. 

To qualify for the Recovery Rebate Credit, he must:

• Be a US citizen or resident alien.
• Not be claimed as a dependent on someone else's tax return. 
• Have an Adjusted Gross Income (AGI) up to $75,000 for individuals and up to $150,000 for married couples filing joint. If your AGI is above this amount, your payment will be reduced. 

For the first two stimulus payments, children 17 and older that were claimed as dependents do not qualify for the first two stimulus payments. 

For the third stimulus payment, he should get a $1,400 payment, either directly to his account once the IRS processes his 2020 tax return. 

Those eligible will automatically receive a third Economic Impact Payment of up to $1,400 for individuals or $2,800 for married couples, plus $1,400 for each dependent. Unlike EIP1 and EIP2, families will get a payment for all their dependents claimed on a tax return, not just their qualifying children under 17. Normally, a taxpayer will qualify for the full amount if they have an adjusted gross income of up to $75,000 for singles and married persons filing a separate return, up to $112,500 for heads of household and up to $150,000 for married couples filing joint returns and surviving spouses. Payment amounts are reduced for filers with incomes above those levels.

Generally, if you are a U.S. citizen or U.S. resident alien, you are eligible for the full amount of the third Economic Impact Payment if you (and your spouse if filing a joint return) are not a dependent of another taxpayer and have a valid Social Security number (see exception when married filing jointly) and your adjusted gross income (AGI) on their tax return does 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 will be phased out – or reduced -- above those AGI amounts. This means taxpayers will not receive a third payment if their AGI exceeds:

• $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.

Most eligible people will get the third Economic Impact Payment automatically and won't need to take additional action. The IRS will use available information to determine eligibility and issue the third payment to eligible people who:

• Filed a 2020 tax return.
• Filed a 2019 tax return if the 2020 return has not been submitted or processed yet.
• Did not file a 2020 or 2019 tax return but registered for the first Economic Impact Payment using the special Non-Filers portal last year.

[Sandy35]

Thank you for your responding to my question.  I will have him file a 2020 return.   I just wanted you to know that his mother does take him for the EIC and TurboTax has him listed as "Nondependent-for EIC/dependent care only".