I'm filing 2020 taxes on extension. My AGI is >$450000. I'm not eligible for stimulus payments, child credits, etc. I have one child born 2019 (and one born 2021).
Can I not claim my 2019 child and file a separate tax return for her. She has about $500 in dividends. Since no one is claiming her as a dependent, she should be able to collect the $1200+$600 stimulus payments from 2020, correct?
No. The child would have to indicate on their tax return that they CAN be claimed as a dependent even if no one is claiming them as a dependent. So since they can be claimed as a dependent they are not eligible for the stimulus payments.
No, unless you want your two year old to commit tax fraud by preparing a tax return for her that says she cannot be claimed as someone else's dependent. Dependents cannot receive stimulus payments. It is inconceivable that a two year old with $500 in income could not be claimed as someone else's dependent. Your scheme will not work.