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

That is correct- for his tax return, you answer that he did not receive the third stimulus and it will be added to his refund for 2021 tax year.

since he was a dependent his stimulus went to us who claimed him

He is still eligible to claim the recovery rebate ($1400) on his return if you are not claiming him as a dependent on your 2021 tax return.   The IRS sent you the payment since you had claimed him on a previous return.  However, since you are not claiming him this year and if he is claiming himself, he can still claim the recovery rebate.   He should not indicate that he received any payments if the payments went to you.   

As long as no one qualifies to claim him as a dependent in 2021, he can claim himself and take the credit since the payment did not go to him.    

Can someone else claim me?    

In cases where parents were provided the third payment, will there be any reductions to amounts they might be owed in these situations for 2021 refunds? 

I have found guidance about not having to repay in the event payment should have been smaller, but nothing clear on if the payment should have gone to the no longer dependent altogether.  Perhaps that is the same considering $0 is smaller than $1400, but being on the conservative side is always best.

Thank you for all the help this forum provides!

No, the parent will not have to repay the stimulus payment if they received it for their dependent that is no longer a dependent.  

The no longer dependent can claim the stimulus payment on their return even if the parent did get it. 

TurboTax Premium did not prompt me about the 3rd stimulus check, and I searched all over for the sections in the topic list.  My son is in the same situation: he was a dependent in 2020, but on his own in 2021; no longer my dependent.  I believe he is eligible for the $1,400 credit, but the dialog was not presented and I can't find it in the credits section.  Thanks.

Your son is eligible to claim the third recovery rebate for 2021 if he is no longer a dependent. He has to file a separate tax return to claim the credit and say that he did not receive the third recovery rebate.

He would answer no to the question about the third stimulus if he is not a dependent for 2021. He can claim himself and take the credit since the 2021 payment did not go to him.

During the Federal Review of your tax return, TurboTax will check if you meet the eligibility requirements for the stimulus payment.

1. If you meet the requirements, you'll see the Did you get a third stimulus? screen.
2. Answer a few questions about any payments you've already received and then we'll let you know if the Recovery Rebate Credit applies.
   • If you need to make any changes to your stimulus credit responses, search for stimulus and select the jump-to link to return to the section. Enter your updated info and Continue.

@retluoc

Thank you, very helpful.  His AGI is above the limit for an individual by $7k - which would suggest to me that he should be eligible for partial credit.  No?  According to the page you shared... "There are also AGI limits to receive the full amount of the credit"

This information from the IRS will help you decide if he is eligible for the third stimulus payment:

Generally, someone was eligible for the full amount of the third Economic Impact Payment if they:

• are a U.S. citizen or U.S. resident alien (and their spouse if filing a joint return), and
• are not a dependent of another taxpayer, and
• had adjusted gross income (AGI) that is not more than:
  • $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 any other filing status

Payments were phased out – or reduced – above those AGI amounts. This means people did not receive a payment if their AGI was at least:

• $160,000 if married and filing a joint return or if filing as a qualifying widow or widower
• $120,000 if filing as head of household
• $80,000 for any other filing status

@retluoc  Are you asking about your return?  If your 2021 is too high to qualify for the Recovery Rebate Credit it won't ask you for it.  If your AGI is too high you don't have to enter what you got or letter 6475 and you don't have to pay it back and it is not taxable.

On his return make sure he is claiming himself under My Info.  And he didn't check the box saying he was claimed on your return.  Maybe start the My Info section over.  Or did he make too much?  The max for Single is 80,000 AGI.  

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.

taxpayer had 2 children on his marketplace health insurance.  They are not dependents in 2021 - how do I reconcile 1095A?  Do I have to split it up and have each child report on his return?

Re: marketplace 1095a child is no longer a dependent does taxpayer claim all or leave some off fo...

You would allocate the amounts on the 1095-A and divide this between your child and yourself. 

Yes, you can allocate it however you choose. You can try multiple scenarios to see how it can benefit all concerned.

Please see this answer from ShawnaD

• If your parents did NOT tell the Healthcare Marketplace (usually when they applied for health insurance) that you were not going to be their dependent, you will NOT receive a 1095-A of your own.
•  
  • You will need to get a copy of your parents' 1095-A and enter it on your tax return.  On the screen after entering the 1095-A, you will check the box indicating that the policy was shared by somebody that is not on your tax return.  It will then prompt you with further questions to determine how much of it is "allocated" to you (even if it is 0%). Your parents would follow this same procedure.
•  
  • If there was Advance credit received (column C of the 1095-A), your parents have the option to claim 100% of the 1095-A on their tax return, or to "allocate" part (or all) of it to you.  If you both agree, the allocation can be anywhere from 0% to 100%.  If you can not agree and Advance credit was received (column C on the 1095-A), then it is divided by the number of people on the insurance policy.  For example, if the insurance policy covers 4 people, each person is allocated 25%.

Does the parent need to return the overpayment to the IRS

No, the parent does not need to return the payment to the IRS. The parent was entitled to the payment in the year that they received the payment.

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?

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.

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?

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

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.

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.  

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

@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 of the Third Payment | Internal Revenue Service

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???