In March 2021 my wife and I received $5600 for the third stimulus payment. It was for each of us, and our two children. I understand they used the 2019 Tax Returns to determine who is eligible and how much to send. The issue is, our daughter was a dependent in 2019. In 2020, she finished college and started working, and was no longer listed as a dependent on our return. She is doing her 2021 return now, and is unsure how to answer if she got the final stimulus payment. SHE did not, but my wife and I did for her. Do we need to give money back to the government so that she can claim it? What is the proper way to proceed?
If your daughter files a 2021 tax return and is not your dependent, she should say that she did not receive the third stimulus. She will be eligible for the Recovery rebate credit of $1,400.
You as her parents do not have to repay the stimulus you received in 2021 which was based on your 2019 return. This is how the law is written.
The IRS says: No, there is no provision in the law that would require individuals who qualify for a Third Economic Impact Payment or an additional payment based on their 2020 or 2019 information, to pay back all or part of the payment if, based on the information reported on their 2021 tax returns, they would have qualified for a lesser amount.
Please read this IRS FAQ for more information.
If your daughter files a 2021 tax return and is not your dependent, she should say that she did not receive the third stimulus. She will be eligible for the Recovery rebate credit of $1,400.
You as her parents do not have to repay the stimulus you received in 2021 which was based on your 2019 return. This is how the law is written.
The IRS says: No, there is no provision in the law that would require individuals who qualify for a Third Economic Impact Payment or an additional payment based on their 2020 or 2019 information, to pay back all or part of the payment if, based on the information reported on their 2021 tax returns, they would have qualified for a lesser amount.
Please read this IRS FAQ for more information.