New Dependent and Stimulus

[dtaylor2u]

I am claiming my daughter this year who was claimed by her grandfather in 2019 and he did receive the stimulus refund.  When I enter the stimulus amounts I received for me, my husband and two dependents the program then tries to add an additional $1000 to my refund because I have a new dependent, but her stimulus refund went to her grandfather, which was correct.  How do I correctly handle this on my return? 

[Bsch4477]

It is legal for you to get the stimulus for a dependent on your 2020 return even though a stimulus payment was given when that same dependent was the dependent of someone else in 2029. 

[KathrynG3]

There is no requirement for you to return the stimulus payment for the third child, even though her grandfather received it. This applies to families where parents are divorced, as well. Both households may receive the payment.

Click the link for the details on how each stimulus payment is calculated:

Stimulus payment 1 calculation

Stimulus payment 2 calculation

For more information, see Economic Impact Payment Information Center — Topic J: Reconciling on Your 2020 Tax Return