Can I claim the stimulus credit if it was already given to the other parent?

[amberduhh]

Hello! My ex and I are supposed to alternate years when claiming our son on our taxes, so he claimed our son on his 2019 taxes, and got the $2000 credit. But afterwards, I learned about the 'loophole' that says he can only claim our son if he has paid all of the child support. Since he's way behind on child support, I amended my return to claim our son as my dependent. I filed my amendment in May 2020, just before the stimulus payments came out. It wasn't done processing until July 2020, and I got the $2000 in July when it was approved. But, in the meantime, my ex received the $500 stimulus for our son in May. Now, I received the 2nd payment yesterday, for only $600, I didn't receive the payment for my son. I assume it went to my ex, again. I don't understand why, because it was amended 6 months ago. My question is, can I try to claim the stimulus credit when filing my 2020 taxes so I can get the $1100 ( $500 + $600 ) that I was initially supposed to receive? I'm sure he was already given that stimulus money, and I don't want to get in trouble with the IRS if I claim it. 

[xmasbaby0]

The stimulus check is an advance on a credit you can receive on your 2020 tax return.  If something went wrong or you did not get the stimulus check this year, you can get it when you file your 2020 return in early 2021—if you are eligible.It will end up on line 30 of your 2020 Form 1040.

https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-j-reconciling-on-your-...

https://www.irs.gov/coronavirus/coronavirus-tax-relief-and-economic-impact-payments-for-individuals-...

https://ttlc.intuit.com/community/tax-topics/help/how-will-the-stimulus-package-impact-me/00/1393859

We know that the IRS is already revising the 2020 Form 1040 to include the 2nd stimulus, but that change will entail a lot of re-programing at the IRS and for the tax software programs.  It may be at least a month — or longer— before the forms are changed.  Do NOT be in a hurry to file your 2020 tax return until more is known. Give some extra time to the IRS and the software programmers so that the software can handle the new 2nd stimulus, so that you can get it all by filing ONE time.  It is never a good idea to file too early; filing your 2020 return too soon may result in a lot of extra confusion that can be avoided if you wait and file a little later.

[NCperson]

forget what occurred in the past..... on the 2020 tax return there is a 'settle up' section for the stimulus.  It is ALL based on your 2020 income and filing status, including what qualified children are listed.  TT will calculate how much you are eligible for (let's say $1700+1200 from your post) and SUBTRACT what YOU actually received.  If that answer is positive, the credit will appear on LINE 30 of FORM 1040 and will increase your refund.  if that answer is negative, you do not owe it back to the IRS.

There is a quirk in the stimulus rules where if one spouse claimed the child in 2019 and received the PAYMENT for that child, but the other spouse claimed the child in 2020, then it is quite possible that the IRS ends up giving money to both parents for the same child! which looks like this case here.

ps TT has not programed in the logic for the 2nd stimulus yet, but it's expected to be there by the end of January when the filing window opens...

does that help? 

[xmasbaby0]

This is happening a lot with children of divorced parents.  The law did not address this issue, so in many cases each parent ends up getting stimulus for the same child -- one of you in 2020 and the other one on a 2020 return in 2021.  If your ex was behind in child support he should not have received stimulus money---if the IRS knew he was behind -- but if he already got it, he will not be required to pay it back.

[Mike9241]

can't say you're right or wrong.  the IRS has its rules for who can claim a qualifying child - generally the custodial parent.   the divorce court evidently said alternative years.  that means that in the years your ex had the legal right to claim the child you were supposed to furnish him with a signed form 8332 which he was supposed to include with his return.     the fact that he did not provide the child support he was supposed to pay you does not mean that the court would say you now have the right to claim the child in all years.  you would need to go back to court to have the child custody order changed.    we can not answer legal questions.

if he had the court order and the 8332 for 2019, the IRS says he had the right to claim the child despite the fact that he did not pay child support. if 2020 is your year you can claim the child.

It's a quirk in the tax laws that allows in the case of a divorced couple - provided the necessary docs are provided to the noncustodial parent - for that parent to claim one year and the custodial parent to claim the next.   

[NCperson]

@Mike9241 - the thread is specific to stimulus.  

the stimulus PAYMENTS are based on 2018/2019 (for the 1st stimulus) and 2019 tax return for the 2nd stimulus.

the ACTUAL eligibility is based on the 2020 tax return.

and this is the kicker - if the payments (which would have included a child claimed in 2019) is greater than the actuals (which would also include a child claimed in 2020 on the other parent's tax return), the there is no requirement to return the money.  THAT is how this legally occurs.

Example:

Parent 1: files single and claims the child in 2019.  their PAYMENT is $2,900.  But their 2020 tax return only shows stimulus eligibility of $1800, since the child is not included.  The parent can keep the $2900 and does not have to return anything because the payment is greater than the actual.

Parent 2: files single in 2019. Their stimulus payment is $1800.  But in 2020, they claim the child, so their actual stimulus eligibility is $2900.  They can get the additional 1100 on Line 30 because the actual exceeds the payment! 

The net is there are three people in this example, but the IRS paid out or provided credits on the tax return for 4 people! All legal.  If there was an issue with it, Congress would have closed this loophole with the 2nd stimulus tax bill!

[amberduhh]

Thank you! This makes so much sense, basing it off of 2020 income and filing status. 

[amberduhh]

Yeah, I understand that the IRS and the courts go by their own rules, and I did not give him the 8332 form when he filed, so I'm guessing the IRS would view me, the custodial parent, as the one eligible to claim the child. As would the courts, because our court order states, he can claim our son as a dependent every other year IF he has paid all child support. I believe after my amendment, things were done correctly filing wise.. but we are both in our mid 20s and this is our only child, so it is a learning process 🙂 

[AmeliesUncle]

---

@amberduhh wrote:

 I did not give him the 8332 form when he filed

---

You NEED to give the noncustodial parent Form 8332 in the years he claims the child.

Also, in those years you should still enter/keep your child on your tax return.  But just go through the questions and say the other parent is claiming the child due to a divorce agreement.  You may still qualify for some benefits (Head of Household, Earned Income Credit, and/or Dependent Care Credit).

[SimplySavvyLIfe]

Im wondering too.. for 2019 taxes (last filing), my ex claimed 2 of our 3 kids and I claimed 1.  Both stimulus checks were based on those dependent scenarios. For 2020 (this filing), I'm claiming all 3 of them. Therefore, when I input my dependents into Turbo Tax AND report what I got for stimulus money it makes it look like there is a discrepancy and it wants to award me a credit for the other 2 kids I didnt claim last year , but for whom my ex got at least one stimulus check.

the info section says a discrepancy may result in a delayed return or the need for an amended return but I cannot afford to have this return delayed as we are still waiting on my ex's return from last year on which he claimed 2/3 kids which we were counting on... so Im claiming this year and we need is ASAP but Im afraid if Im honest its going to throw a red flag, not because of any attempt at fraud, just because of the way they are asking the question..it doesnt account for parents filing different dependents from last year to this year.  I cant complain if they pay again but I dont want to be charged with anything!

[JamesG1]

I sympathize with your situation.  

The IRS reviewed both 2018 and 2019 tax return data to determine the dollar amount of the first round of stimulus checks.

It has long been expected that taxpayers who claim dependents in alternating years will be significantly affected by:

• the calculation of the stimulus checks, and
• the reconciliation of the stimulus checks on the 2020 Federal income tax return.

This article addresses your question.

"In one scenario, the qualifying custodial parent — designated as such for tax purposes — releases a dependency tax claim to the noncustodial parent. In such cases, whichever parent claimed a child on his or her 2019 return might have received the $500.

In its guidance document, the IRS said: “When the parent who did not receive an additional payment files their 2020 tax return next year, they may be able to claim up to an additional $500 per-child amount on that return if they qualify to claim the child as their qualifying child for 2020.”

At this point, we believe the IRS understands that there are taxpayers who are in your situation and will allow for it.

However, in the last year, so many of these issues have changed once, twice or more times. It would not surprise me if the IRS gives a tax return such as yours additional review and is delayed in processing.

[SimplySavvyLIfe]

Exactly! I was afraid to answer honestly because that could result in a duplicate payment in this scenario, and I don't want to be in trouble for fraud, yet answering dishonestly is definitely fraud, so I'm just answering honestly and if the gov't pays an extra child stimulus then they will have to sort it out later.  Its not like we don't need the help cuz we do, but all this printed money is just devaluing our currency and creating more debt!

  I don't want to be held responsible for overpayment but the questions on the tax forms don't really allow for this all to be flushed out!

[ThomasM125]

It is usually best to answer the questions in TurboTax literally and also that is what is normally required when you complete a tax return. You should therefore enter what stimulus payments you received when that is what you are instructed to do.

[salcarovinci10]

Basically it is this the parent that filed their taxes first gets the credits on their return. Same with the stimulus. It is absolutely not true both parents will get it. Their 2020 return filed is the most recent return and thats what the irs will use with those corresponding social security numbers and then after you paper file the irs will pay out your refund as well but several months later you will get a letter giving you an option to amend your return saying someone else has filed and if your in the right fine dont do anything they will ask the other parent for proof then they will ask you . The process takes 1yr or more because they beat you to the punch so they get both the credits and stimulus. Now next years taxes filing 2021 in 2022 you have the option to then try to claim the stimulus money for 2020.

[salcarovinci10]

what basis do you have to say it looks like what is happening here payments have not even posted yet for the stimulus.