Stimulus credit for college student

[fusilli45]

My daughter graduated college in May 2021 at the age of 23, had always been a dependent on my return, and thus had not received any stimulus payments. She turned 24 late in 2021, and on that basis I guess cannot be a dependent on my 2021 return. Because she did not receive the third stimulus payment last spring, TurboTax says she is entitled to the Recovery Rebate Credit, which seems a little funny to us because she was still a student last spring and we had paid her tuition expenses for that semester (in December 2020). Is this OK, i.e., she can receive this credit because by the end of 2021 her age no longer allowed her to be a dependent on my return?

[PattiF · Accepted solution]

Yes, she is eligible to receive the Third stimulus payment.

She is eligible to claim the third recovery rebate for 2021 as she is no longer a dependent. Since her parents claimed her as a dependent on their 2020 return, they received the payment from the IRS. Since you are not claiming her this year, and she is claiming herself, she can claim the recovery rebate. 

She would answer no to the question about the third stimulus if she is not a dependent for 2021. She can claim herself and take the credit since the payment did not go to her.

[fusilli45]

Thank you! 🙂

[PattiF]

You are welcome!