Recovery Rebate Credit for a college student

[zoey987654]

My 20 year old college student that I am claiming on my taxes did not receive either stimulus checks.  After submitting the missing stimulus checks on the IRS website . The IRS website says to claim the loss of $1,100 on my tax form 1040 or 1040-SR.  Where do I claim this in the Intuit Turbotax Deluxe edition? 

[xmasbaby0]

You do not get stimulus money for a child who was over the age of 16 at the end of 2020.   
And since she is a dependent she does not get it----dependents are not eligible for stimulus checks.

[patriciafalcon]

My full time college student was 23 this year in January.  We did not get a stimulus for him last year (the first or the second).  I believe we should have gotten one for $500 and one for $600.  What can we do.  Turbo tax does not recognize that we should get it.  Why?

[xmasbaby0]

Parents do not receive stimulus checks for children younger than 17.   You were not eligible to receive a stimulus check for your child who was older than 16 last year or now.   And since he is your dependent he is not eligible to receive a stimulus check.   

[JamesG1]

@patriciafalcon

Dependent child must be a qualifying child.  Qualifying child requirements are listed below.

IRS FAQ How much will the second Economic Impact Payment be? states:

Eligible individuals who filed a 2019 joint tax return will receive up to $1,200, and all other eligible individuals will receive up to $600. Those with qualifying children on their 2019 tax return will receive up to $600 in additional payment per qualifying child.

Who is considered a qualifying child?

A qualifying child is a child who meets the following conditions: 

• Relationship to the individual who’s eligible for the payment: The child is your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of them (for example, grandchild, niece, or nephew).
• Child's age: The child was under age 17 on December 31, 2019.
• Dependent of the individual who's eligible for the payment: The child was claimed as your dependent on your 2019 tax return or in the Non-Filers: Enter Payment Info Here tool.
• Child's citizenship: The child’s a U.S. citizen, U.S. national, or U.S. resident alien.
• Child's residency: The child lived with you for more than half of 2019.
• Support for child: The child didn’t provide over half of their own support for 2019.
• Child's tax return: The child doesn’t file a joint return for the year (or files it only to claim a refund of withheld income tax or estimated tax paid).

[Opus 17]

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@patriciafalcon wrote:

My full time college student was 23 this year in January.  We did not get a stimulus for him last year (the first or the second).  I believe we should have gotten one for $500 and one for $600.  What can we do.  Turbo tax does not recognize that we should get it.  Why?

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Unfortunately, the tax code has many different definitions for "dependent" and Congress used one of the most restrictive definitions. 

[sm168]

Hi, if my 20-year-old child who is a full-time college student can be claimed as a dependent but is filing his own taxes in 2020, can he be eligible?  He is providing more than half of his expenses.

[JamesG1]

@sm168

If your 20-year-old files a 2020 Federal 1040 tax return and claims himself,  he/she may qualify for the three stimulus payments if all the qualifications are met.  IRS FAQ states:

Who is eligible for the second round of Economic Impact Payments?

Generally, if you’re a U.S. citizen or U.S. resident alien, you may be eligible for $600 ($1,200  for a joint return), plus $600 for each qualifying child, if you (and your spouse if filing a joint return) aren’t a dependent of another taxpayer on a 2019 tax return, have a social security number (SSN) valid for employment and your adjusted gross income (AGI) does not exceed:

• $150,000 if married and filing a joint return or if filing as a qualifying widow or widower;
• $112,500 if filing as head of household; or
• $75,000 for eligible individuals using any other filing status 

Your payment will be reduced by 5% of the amount by which your AGI exceeds the applicable threshold above.

You aren’t eligible for a payment if any of the following apply to you:

• You were claimed as a dependent on another taxpayer’s 2019 tax return (for example, a child or student who may be claimed on a parent’s tax return or a dependent parent who may be claimed on an adult child’s tax return).
• You don’t have an SSN that is valid for employment issued before the due date of your 2019 tax return (including any extensions).
• You’re a nonresident alien.
• Someone was deceased before 2020.
• Are an estate or trust. 

However, you may be eligible to claim a Recovery Rebate Credit on line 30 of your 2020 tax return. Please refer to the instructions for the 2020 Form 1040 for more information.

He/she may claim a Recovery Rebate Credit on line 30 of the 2020 Federal tax return for stimulus payment 1 and stimulus payment 2 if those have not been received.

You may have previously received stimulus payment 1 and stimulus payment 2 for your 20-year-old but those are based upon the 20-year-old as a dependent on your tax return.  Those do not have to be repaid.

If your 20-year-old files a 2020 Federal 1040 tax return and declares that he/she is your dependent,  he/she will not receive the three stimulus payments.  All stimulus payments will be received by you because he/she is your dependent.

[Opus 17]

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@sm168 wrote:

Hi, if my 20-year-old child who is a full-time college student can be claimed as a dependent but is filing his own taxes in 2020, can he be eligible?  He is providing more than half of his expenses.

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Your question shows you are confused.  

If a child qualifies to be claimed as a dependent by someone else, they must answer "yes" they can be claimed, even if the person who could claim them agrees not to, and that will disqualify them from the rebate credit.

However, if the child really does provide more than half their support, they can't be claimed as a dependent.  They can correctly answer "no" that they can't be claimed, and they would be eligible for a credit.

I see that another expert has posted more details about how to determine if the person can or can't be claimed. 

[sm168]

@Opus 17 Thank you, that clarified my confusion.  He would need to amend his tax return.