Got $600 stim but didn't/can't get $1200

[madmanc20]

Son's transition from college to workplace resulted in this. His taxes are

2018 - dependent (I claimed)

2019 - non dependent. Qualify for $1200 and $600

2020 - non dependent. Don't qualify for stimulus due to AGI phase out

He didn't get $1200 since 2018 taxes don't qualify and IRS was unable to determine during payout window with 2019 tax filing in flight. We then planned on claiming it as a credit on 2020 taxes.

He received $600 stim since IRS had his 2019 taxes during this payout window.

2020 taxes can't claim $1200 stim credit due to 2020 AGI phase out.

Screwy result seems to be just a matter of timing on all the events. So he is probably out of luck. Thought I confirm before we finalize his 2020 taxes.

Thanks

[xmasbaby0 · Accepted solution]

The stimulus checks were an advance on a credit you could get on your 2020 tax return.  If your 2020 income is too high to be eligible for the stimulus you do not have to pay back money you received last year.   But if you did not receive it last year, and your 2020 income is too high, they do not go back and give it to you based on your 2019 income—-you either do not get it at all or you are subject to the phased out amount for your income.

A1. Generally, if you are a U.S. citizen or U.S. resident alien, you will receive an Economic Impact Payment of $1,200  ($2,400  for a joint return) if you (and your spouse if filing a joint return)  are not a dependent of another taxpayer and have a Social Security number valid for employment and your adjusted gross income (AGI) does not exceed:

• $150,000  if married and filing a joint return
• $112,500 if filing as  head of household or
• $75,000  for eligible individuals using any other filing status
  Your payment will be reduced by 5% of  the amount by which your AGI exceeds the applicable threshold above.

You are not eligible for a payment if any of the following apply to you:

• You may be claimed as a dependent on another taxpayer’s return (for example, a child or student who may be claimed on a parent’s return or a dependent parent who may be claimed on an adult child’s return).
• You do not have a Social Security number that is valid for employment.
• You are a nonresident alien.
  The following are also not eligible: a deceased individual or an estate or trust.

[madmanc20]

Got it, an advance on the credit definitely make sense. Thanks