How to proceed with 3rd stimulus issue

Forum|Forum|4 years ago
January 27, 2022
11 replies
51 views

Hi everyone, hoping you can assist. We had a child in august 2021 so according to what I read we should be eligible for $1400 stimulus for her.

However, the issue is that in our 2021 taxes we are not claiming one of our children anymore(he moved out in early 2021).

It asks how much we received in stimulus which was $5600, 2 adults and 2 dependents at the time which matches what it should have been according to TurboTax. Since it matches it doesn’t let me claim the recovery rebate. It looks like its not taking into account the removal of a dependent and addition of a new dependent.

How do I navigate this to get the $1400 for my newborn?

Best answer by rjs

Sorry, but you don't get an additional $1,400 for the new baby. The stimulus payment that you received was an advance payment of the Recovery Rebate Credit on your 2021 tax return. But the stimulus payment was made in 2021, before you could have filed your 2021 tax return. So the IRS used your 2020 tax return as an estimate of what you would be entitled to on your 2021 tax return. In your case the estimate based on 2020 turned out to be on the mark. Based on your 2021 tax return you are entitled to $5,600, and that's exactly how much they paid you in advance. The fact that the estimate was based on different dependents doesn't matter. You're entitled to $5,600 for yourself, your spouse, and two dependents, and that's what you got. You don't get any more.