Stimulus for dependent

[davev1pa]

my 24 yo daughter was a dependent of mine for 2019 and 2020.She had not filed since 2017 as she hasn't worked and was a full-time student. This year 2021 she is not a dependent. She did her taxes with Turbo tax self employed (desktop). She filed her taxes and received a stimulus recovery credit of 1400$. Since she was a dependent in 2020 and didn't have any income is this correct? Was she eligible for the stimulus credit?

[AliciaP1]

Yes.  The Recovery Rebate Credit is for those who did not receive the stimulus payment in 2021 and it is a fully refundable credit so she did not need income in order to claim the credit.

Please see Recovery Rebate Credit for more information.

[davev1pa]

But in 2020 she was my dependent and we weren’t eligible for stimulus $ due to AGI limits. Is that a factor? I don’t believe I was eligible for 2021 stimulus credit as my agi was too high in 2020. I retired 1-1-2021 with very little income for the year . We did not get  the 3rd stimulus check and don’t believe I was eligible because of 2020 AGI

[MayaD · Accepted solution]

You daughter can claim the Recovery Rebate Credit.

Per IRS

If you were claimed as a dependent on someone else’s tax return for 2020, you were not eligible for the third 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. Questions and Answers about the Third Economic Impact Payment — Topic B: Eligibility and Calculatio...

[davev1pa]

Perfect!!