Stimulus check and dependents only in 2020

[GH88]

Hi all - thanks in advance.

Quick question, for someone I'm helping do their taxes, she (single female) has historically put her parents as dependents as they live with her and she files as head of household.

With the stimulus check refund, can she file as HOH again this year and then in 2020 her parents file as a married couple to maximize the refund and she will revert back to single filing status?

I think based on how I'm reading the rules it should be possible, but I just wanted to make sure.

[Texas Roger]

Assuming she has been rightfully claiming them as dependents on her tax return and they still meet the requirements to be claimed by her in 2020, she can not do what you describe. If a person or couple meet the requirements to be claimed as a dependent by someone else, they must check the box on their tax return that someone else can claim them. That box must be checked whether someone else actually claims them or not.  If that box is checked, they are not eligible to receive the stimulus payment. 

Since she has been claiming them, I assume she knows what the requirements are but here they are:

1. The person cannot be your qualifying child or the qualifying child of any other taxpayer. A child is not the qualifying child of any other taxpayer if the child's parent (or any other person for whom the child is defined as a qualifying child) is not required to file an income tax return or files an income tax return only to get a refund on income tax withheld.
2. The person either (a) must be related to you or (b) must live with you all year as a member of your household.
3. The person's gross taxable income for the year must be less than $4,200 in 2019. This excludes social security benefits.
4. You must provide more than half of the person's total support for the year. Social security benefits must be included in determining this. 
5. The person must be a U.S. citizen, U.S. resident alien, U.S. national, or a resident of Canada or Mexico.

[NCperson]

@GH88 - let me add to @Texas Roger comments.

the issue is different for your friend vs. her parents. 

let's begin with the basics.  Your friend must pass all 4 of these tests to be able to claim her parents in the first place 

1. The person either (a) must be related to you or (b) must live with you all year as a member of your household. (this one is a pass because it's a relative)
2. The person's gross taxable income for the year must be less than $4,200 in 2019. This excludes social security benefits.
3. You must provide more than half of the person's total financial support for the year. Social security must be included as 'support'.  (financial support means fair share of rent, food, clothing, utilities, transportation, medical costs, insurance, etc.)
4. The person must be a U.S. citizen, U.S. resident alien, U.S. national, or a resident of Canada or Mexico.

if your friend FAILS any one of these tests, she can NOT claim her parents. 

if she FAILS any one of these tests she should not be claiming her parents to begin with.  Thus, her parents are eligible for the stimulus.

if she PASSES all these tests she CAN claim her parents.  Again, the IRS doesn't care if she does or not. 

But here is the issue... on her parents' tax return, they are asked CAN they be claimed by someone else.  And they CAN be - that answer doesn't change whether or not your friend claims them. the question on her parent's tax return is NOT "Were you claimed"; it's CAN you be claimed  - see the difference? 

so if you friend a) CAN claim them, b) her parents fails to check the box that they CAN be claimed and c) they get the stimulus as a result, it would be tax fraud! 🙁

does that help?