2021 Economic Impact Payment for 2020 dependent that is not dependent in 2021

[Skoach]

I correctly received the EIP in March 2021 of $4200.  Based on 2020 (and prior) tax returns this is the correct amount for myself, spouse, and daughter.

My daughter turned 24 in 2021 and no longer qualifies as a dependent based on her income.

When doing my taxes I enter that we received $4200 for EIP and is reported correct as I expected.

My daughters return shows her getting her EIP retroactively ($1400) in a refund since she did not receive a EIP in 2021 because she was a dependent.

It is clear that I was issued the EIP based on prior years returns and is also clear that she is now being issued the EIP based on her actual 2021 return.  Nothing wrong that I can find, but it seems backwards that she will essentially get two credits (one paid to me in March 2021 and one paid to her as part of her refund for 2021 tax return).

Is this correct?  I cannot find a citing anywhere that can verify this situation.

[xmasbaby0 · Accepted solution]

Your daughter can indeed receive the 3rd EIP payment on her 2021 return since she cannot be claimed as a dependent for 2021.    Congress left a big loophole that allowed you to get it based on your 2020 return---and you do not have to pay it back.  But now that she is filing a 2021 return and cannot be claimed she gets $1400 too.   Good news for her!