Stimulus check son was a dependent in 2020 but not in 2021.

[queenmaddy]

I was claimed on my parents tax return in 2020 as a dependent and  they received the 3rd  stimulus check.  This year 2021 If I file my own taxes and my parents don't claim me as a dependent  will I receive the 3rd stimulus money of 1400 even though my parents already received it?  I am a fulltime college student if that matters?

[PattiF]

Yes, you are eligible to claim the third recovery rebate for 2021 provided you no longer qualify to be considered a dependent. If you were claimed as a dependent on your 2020 return and then you did not receive the payment from the IRS. If you are not being claimed this year, and you are claiming yourself, you can claim the recovery rebate. 

You would answer no to the question about the third stimulus if you are not a dependent for 2021. You can claim yourself and take the credit since the payment did not go to you. 

See this article by the  IRS.

[ZZ1234]

My wife and I make too much to money to claim my daughters college credits on her 1098 t.  Do I have to claim her as a dependents by law even though she is a full time student and lives at home and is 22 years old and works part time?  If I don' t claim her she would get the college credit and the $1400 stimulus....need help thank you?

[JamesG1]

You are not required to claim your daughter as a dependent on your tax return.

However, if you daughter meets the requirements to be your dependent, then she will have to indicate that she can be claimed as a dependent on her own tax return, even if you decide to not claim her.  This may impact some tax benefits.

This IRS FAQ Who was eligible for the third-round Economic Impact Payment? states:

You were not eligible for a payment if any of the following apply:

• You could be claimed as a dependent on another taxpayer’s 2020 tax return
• You were a nonresident alien.
• You did not have a valid SSN issued to you by the due date of your tax return (including an extension to October 15 if you requested it). 

@ZZ1234

[dasman66]

The advice given in these messages and in TurboTax appears to completely contradict the IRS Q&A guidance on the IRS website:

What can I do if someone else claimed me as a dependent in 2020 and I did not receive the third-round Economic Impact Payment (updated March 25, 2022)

If you were claimed as a dependent on someone else’s tax return for 2020, you were not eligible for the third-round Economic Impact Payment. If no one can claim you as a dependent for 2021 and you are otherwise eligible, you can claim the 2021 Recovery Rebate Credit, and must file a 2021 tax return to claim the credit.

My daughter has already filed her return erroneously based on the Turbotax, my son is the one that found the above guidance stating that you could not essentially "double-dip" the Recovery Rebate.  Now what happens when my daughter gets fined/penalized for following TurboTax guidance on her return?

[JillS56]

If you claimed your daughter as a dependent and received the 3rd stimulus payment for your daughter her social security number is in the system as someone having received the 3rd stimulus payment.    Most likely, she will not receive a refund for the stimulus payment.   if she does, she can amend her return and return the stimulus payment to the IRS.  

Many people have claimed the stimulus payment who have already received the funds.  The IRS has not issued fines or penalties.   She will either not receive the stimulus refund or she may be asked to return it.   If she gets the refund, I would put it in the bank and not spend it.     Like I said above, she can amend her return if she receives the refund, the explanation would be that someone else had already received the 3rd stimulus payment and then return the $1,400 with the amended return.

[dasman66]

I apologize, but I don't understand your response.

To clarify our situation - both my son and daughter were dependents on my 2020 return.  I rec'd 3rd stimulus payments for both of them in April 2021.  They did not receive a stimulus payment and were not eligible since they were dependents in 2020. 

Now in 2021, neither can be claimed as dependents on anyone's tax returns.  The guidance in this group of messages directly addresses this situation and claims that they are eligible for the 2021 Recovery Rebate.  The IRS Q&A information I posted appears to indicate that they are not eligible (although I can read the IRS response both ways).

I was hoping to find clarification here.  Unfortunately your response further muddies the waters for me and appears to backtrack on the information provided by 4-5 other Intuit Employee Tax Experts earlier in this thread.  

[AliciaP1]

The 3rd stimulus payment turns out to be very generous in its treatment.  You correctly received the funds in early 2021 based on your 2020 tax return and should report you did on your 2021 tax return.  Your children should each correctly claim that they did not receive the stimulus payment and will correctly receive the Recovery Rebate Credit on their 2021 tax returns.  You will not be penalized for receiving the funds by having to pay back any amounts for them.

@dasman66

[VolvoGirl]

@dasman66   Sorry but you didn't read the IRS right.  It says they can get the Recovery Rebate Credit.

If you got a Stimulus payment for a dependent you aren't claiming for 2021 you don't have to pay it back.  And they can get it on their own 2021 return.   On their return they say NO they didn't get it - because you did.

The 3rd Stimulus payment is really based on 2021.  The IRS just sent the checks out using 2020 to get them out fast.

See IRS Topic B first question

Questions and Answers about the Third Economic Impact Payment — Topic B: Eligibility and Calculation...

[Karen R]

This is our situation as well - we received the third stimulus for our son who was a dependent in 2020 but not in 2021. His income was below the threshold allowed in 2021 and we said he did not receive the third stimulus. When he received his refund, the IRS deducted the $1400 from his return. We're not sure what to do now. I guess we can dispute the refund???

[NCperson]

@Karen R - just to confirm, what was on Line 30 of your son's Form 1040? 

did he check the box that someone CAN claim him in 2021? 

What can I do if someone else claimed me as a dependent in 2020 and I did not receive the third-roun...

If you were claimed as a dependent on someone else’s tax return for 2020, you were not eligible for the third-round Economic Impact Payment. If no one can claim you as a dependent for 2021 and you are otherwise eligible, you can claim the 2021 Recovery Rebate Credit, and must file a 2021 tax return to claim the credit.

[lashay parker]

i dint never receive my 2020 taxes for me or my sons when i went to file for 20221 they only gave me child tax credit for 2021 which was 4,500  but I still never got any of the stimulis  ive been contacting the IRS in they told me a national bank a check was deposit I called last year in there just send me a letter I've been homeless so i never had a stable mailing address to get that money now i have a bank trying to get 2020 payment so i wondering how i can get that if somebody can just reach out to me [phone number removed] 

[Karen R]

Right. On line 30 of my son's return is the $1400 because I said he didn't get it when asked by TurboTax. And I verified that I did NOT check that he could be claimed as a dependent by someone else and he is not listed as a dependent on my taxes. Still, the IRS adjusted his federal return and removed the $1400 3rd stimulus payment. I gather he will need to dispute the refund because everyone in this community is validating that he should have received the $1400 payment.

[Karen R]

Since you are noted as an expert I would appreciate your suggestions. My son was my dependent in 2020 but not in 2021. His 2021 income was under the cap (by quite a bit) for receiving the 3rd stimulus payment. I said in Turbotax that he did NOT receive the payment so the $1400 was included in the calculated refund he would receive. The IRS adjusted the refund amount and removed the $1400 payment. What do we do now? Thank you!

[NCperson]

read through this page and specifically about the payment tracing.  THe IRS thinks your son received the payment (which is odd if 2021 is the 1st year he filed where he did not check the 'can be claimed' box.)

https://www.irs.gov/newsroom/questions-and-answers-about-the-third-round-economic-impact-payment-top...