I got the 3rd stimulus in march 2021 I will owe?

[jt040900]

I got the full payment for me and my wife and two dependent children in March 2021(3rd Stimulus) . The two dependents  are no longer considered dependents for tax purposes since they used my 2019 info.  So since this is a credit will we have to pay this back  when we do taxes in 2022 

This also just seems like an advance from the irs not free money.  This has the potential to reduce most peoples tax refunds and in my case owing when filing taxes in 2022?  

Any help in this matter would be greatly appreciated. 

[DoninGA]

The stimulus payment is not taxable income and is not reported on a tax return as income.  You will not have to pay back the stimulus payment you received since you were eligible for the payment based on the federal tax return the IRS used to calculate the payment.

[jt040900]

It does say its a credit so when I file in 2022 will I still the standard deduction from me and my wife? The last year we claimed our two dependents was in 2019 so 2020/2021 we had to dependents so you are saying they will not take that into account?  Thanks last question. 

[Critter-3]

The standard deduction and the  stimulus credits are NOT the same thing ... they are not even spelled alike.

You always get the standard or itemized deduction on the return  and if you are eligible for more of the third stimulus credit then a credit is added to your return.   If you got too much in advance it does NOT need to be repaid so take a deep breath ... all is good for you.  

[DoninGA]

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@jt040900 wrote:

It does say its a credit so when I file in 2022 will I still the standard deduction from me and my wife? The last year we claimed our two dependents was in 2019 so 2020/2021 we had to dependents so you are saying they will not take that into account?  Thanks last question. 

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Stimulus payments have no effect on your Standard Deduction.  For Married Filing Jointly on the 2021 tax return the Standard Deduction will be $25,100.

Since you correctly received the third stimulus payment there is nothing for you to report concerning the payment on your 2021 tax return.

[VolvoGirl · Accepted solution]

If next year 2021 works like 2020 returns you will not have to pay back some of the 3rd stimulus if you got too much.   Sounds like you got $5,600 ($1,400 for 4 people) based on your 2019 return?  But you won't be claiming the 2 dependents on your 2021 return.  And if your 2019 dependents file their own 2021 returns they can also claim the 3rd stimulus even if you got it for them.