Incorrect Stimulus Credit

[xoxotoni]

My mother claimed my 2 kids last year and also will be claiming them this year. She received the 3rd stimulus for herself and my son( I received the stimulus for myself and my 1st child NOT my 2nd child because he was born in 2020). For this year, TT is stating she should have received $4200 because its obviously based on the information entered and AGI and when I enter the correct amount that she received(2800) its saying she  qualifies for the recovery rebate credit of $1400 which I know is NOT correct.  We want to avoid any delays so my question is...What amount should she put down; The correct amount that she received....or the amount that TT tells her she should qualify for?

[DawnC]

If she has herself and 2 dependent children on her 2021 return, her 3rd stimulus payment should total $4200.   If she received $2800, that is the amount you should enter when asked how much did she receive.   You should enter exactly what she received.   If she did receive $2800, she would qualify for a recovery rebate of $1400.  

If and when you file a tax return, but don't claim the child you received a stimulus payment for, TurboTax will tell you that you received more than you qualified for.   But you do not have to pay that $$ back, but you also won't receive any additional stimulus or recovery rebate.     See Q E-15

[xoxotoni]

Thank you for your response!

She did in fact receive only $2800 because I received the stimulus for 1 of my kids(because 3rd stimulus was based on my 2019 taxes which I claimed my daughter and my son was not born yet)

So if I enter that she received $2800, TT is saying she qualifies for $1400 which she technically does not because only 1 person can receive a stimulus for a child and that was myself who received it.

I am just trying to avoid her taxes being delayed again because she had the same issue with last year's taxes. It just makes it look like she is trying to get more money back than what she knows she should receive.

[Critter-3]

There is a weird quirk in the tax law with the stimulus payments ... you get an ADVANCE based off what was on your 2020 return however the credit is really for the 2021 return ... so if she has 3 people listed on the 2021 return her credit is 1400 x 3 =4200 less the 2800 she got in advance = 1400 on line 30 of the form 1040 and it is legal.  

If you got the stimulus for the same child in advance and you are not claiming that child on the 2021 return you don't need to give it back ... so this is a legal "double dip".  

[VolvoGirl]

Don't worry about what you or your mom got,  just fill out each tax return.   Only enter shat your actually received.    If you can get it for claiming a child on your return this year you get it.  No matter if your mom already got it.