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In the personal info section, for the new born, be sure you answered the child lived with you all year (per the instructions on that screen).
As to the other child, what is you situation; are the unmarried parents living together or is this a divorce/separation (including never married) situation?
Ok ... so a child that was claimed by you last year so you got the stimulus on that child. And the other parent is claiming that same child on the 2020 return so they will get the credit as well. Thus that child is being claimed TWICE.
Now you have a new child on the 2020 return but you already got the stimulus earlier on the first child so you do NOT get it again on the new child. This is backside of the double dip situation on the first child because the ADVANCE payments were based on the 2020 tax return. Sorry but you don't get more ... the program is correct and there is no way around it.
If you received the stimulus payment based on your 2019 return for two dependents, and you report 2 dependents on your 2020 return, then you don’t get more money, even if they are different dependents. That’s just how the law and the forms work.
So I have one son I claim who was 16 at the end of 2019, turned 17 in July 2020, and during 2020 my wife and I had a son in September. We received the full amount for the older son in both stimulus checks, but not for our newborn. I have marked the newborn as living with us all year, per the instructions, but the recovery rebate calculated only includes payments totaling the maximum amounts for 2 adults and one child for both checks. Why is Turbo Tax not calculating a recovery rebate for my newborn?
According to IRS.gov, "The payment in 2020 will not include an additional amount for these children because the payment in 2020 is based only on information from your 2019 or 2018 tax return. You may claim the child in 2021 as an additional credit on your 2020 tax return, if eligible."
Sorry but you have already gotten all the stimulus payments you are eligible for based on the 2020 information.
On the 2020 return you are eligible for the credit on you and your spouse plus the newborn. The child who turned 17 in 2020 is not eligible any longer. The 2020 credits were sent out in advance using info off the 2018 or 2019 returns and are reconciled on the 2020 return. Thus you got the credit based on old information in advance which was not accurate.
The rebate is based on the number of dependents you claim, not their identity. You lost eligibility for your child who turned 17, and gained eligibility for the newborn. Since the credit is based on the number of dependents, and that did not change, you do not get any additional payment.
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