Stimulus question for new non-dependents

[Shasta4]

Isn't the question Turbo Tax 2021 asks about the third stimulus payment the wrong question? It makes a $1400 difference on our kids' taxes! Shouldn't it be asking if you, or anyone else who previously claimed you as a dependent received a third stimulus check on your behalf? Our kids were dependents in 2020 but not in 2021.  Though our letter 6475 does not state for whom we received money, we can kind of surmise that we did receive $1400 for each of them, but it's totally unclear when they are answering the Turbo Tax questions!

[rjs · Accepted solution]

No, it should not ask whether anyone else got a stimulus payment for you. It doesn't matter if someone else got it. If your kids are not dependents in 2021 they are entitled to the $1,400 Recovery Rebate Credit on their own 2021 tax returns. It doesn't matter if you got payments for them based on your 2020 tax return. And you do not have to return the payments that you got.

The kids should just answer the question as it's asked in TurboTax. If they did not get a stimulus payment themselves, they are entitled to the credit on their tax returns.

[PattiF]

Former dependents are eligible to claim the third recovery rebate for 2021 provided they no longer qualified to be considered a dependent. If they were claimed as a dependent on your 2020 return, and you received the payment from the IRS. If you are not claiming them this year, and they are claiming themselves, they can claim the recovery rebate. 

They would answer no to the question about the third stimulus if they are not a dependent for 2021. They can claim themselves and take the credit since the payment did not go to them. You will need to report the stimulus received on your return even if you don't pay it back.

See this article by the  IRS.

[VolvoGirl]

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...

[Shasta4]

My question was well - answered - thanks, everyone!