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derekbob45
Returning Member

having an issue with stimulus, don't know how to approach recovery rebate credit with my dependents someone please help

previous year my tax return was four dependents, and we received $7,000 in stimulus for my dependents and I. we had a son in Feb of 2021, which would make us eligible for another $1,400, but also one of my dependents (my mother whom I took care of) received an inheritance from her mothers passing, and I no longer support her, and got her into her own apartment this year. Well it sees the $7,000 as the correct amount, because I'm no longer listing my mother as a dependent, how can I claim the additional $1400 for my son born in Feb 2021?

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2 Replies
rjs
Level 15
Level 15

having an issue with stimulus, don't know how to approach recovery rebate credit with my dependents someone please help

You don't get an additional $1,400. Your Recovery Rebate Credit is based on your 2021 tax return, so you are entitled to a credit of $7,000 for yourself plus the four dependents on your 2021 tax return. That includes the credit for your new son. You are not entitled to a credit for your mother because she is not a dependent on your 2021 tax return.


The stimulus payment that you received was an advance payment of the credit on your 2021 tax return. The amount of the payment was essentially an estimate of your 2021 credit based on 2020 information. Although the amount was calculated based on 2020 information, it happens to be the correct amount for your 2021 credit, so you don't get any additional Recovery Rebate Credit on your tax return. You already got the full $7,000 credit that you are entitled to for 2021. The fact that the calculation of the advance payment was based on a different dependent does not entitle you to an additional credit.


Again, you are getting the credit for your newborn son. You are not entitled to a credit for your mother.

 

derekbob45
Returning Member

having an issue with stimulus, don't know how to approach recovery rebate credit with my dependents someone please help

Okay thank you so much for the clarification, huge help!!

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