Can I claim the third stimulus recovery rebate for my newborn on my 2021 tax if I take out a dependent?

[Qaim]

For tax 2020, my husband and I filed together and claimed my 18 years old.  We got our $1400 each (total $4200 for us 3). In 2021 we have a newborn.  This year my 18 years old son filed his own tax.  For 2021, my husband and I are claiming our new born (total 3 people.) TurboTax asked if I received a total of $4200 for our third stimulus. Do I put yes or no? If I put yes, I will lose the $1400 for my newborn. If I put no, the amount does not match the amount on my form 6475 I received from the IRS.  What do I need to do in order to claim that $1400 for my newborn?

[xmasbaby0]

You are required to enter the $4200 that you received already.   Since you are claiming only one dependent on your 2021 return, you will not receive another $1400.   You already got $1400 in advance for a dependent you have chosen not to claim for 2021.

Why are you not claiming your 18 year old?   Do you not realize that you can still claim him?   You can claim a qualified child until they turn 19, or until they turn 24 if they are a full-time student.

Your older son can file a tax return but he should say he can still be claimed as a dependent---because he CAN be claimed.   That is the rule.....if he CAN be claimed he is supposed to say that on his own return.

For the 18 year old:

https://ttlc.intuit.com/community/dependents/help/when-do-i-have-to-answer-yes-to-being-claimed-as-a...

For you:

WHO CAN I CLAIM AS A DEPENDENT?

You can claim a child, relative, friend, or fiancé (etc.) as a dependent on your 2021 taxes as long as they meet the following requirements:

Qualifying child

• They're related to you.
• They aren't claimed as a dependent by someone else.
• They're a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
• They aren’t filing a joint return with their spouse.
• They're under the age of 19 (or 24 for full-time students).
• No age limit for permanently and totally disabled children.
• They lived with you for more than half the year (exceptions apply).
• They didn't provide more than half of their own support for the year.

Qualifying relative

• They don't have to be related to you (despite the name).
• They aren't claimed as a dependent by someone else.
• They're a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
• They aren’t filing a joint return with their spouse.
• They lived with you the entire year (exceptions apply).
• They made less than $4,300 in 2021.
• You provided more than half of their financial support.

When you add someone as a dependent, we'll ask a series of questions to make sure you can claim them. There may be other tax benefits you can get when you claim a dependent.

And....if you claim your 18 year old----you will have an extra dependent on your 2021 return and you will get the $1400 for the newborn.

[DMarkM1]

You may not be eligible for an additional stimulus payment for your newborn. The third round stimulus payment you received was an advanced payment on the Recovery Rebate Credit on your 2021 return.  However, since 2021 tax returns had not been filed yet the IRS used 2020 tax return information.  Therefore you received payment for three people on your 2021 return already; that the third person is a different person is not a factor.

Having said that, if your 18-year-old son still met the criteria in 2021 to be a dependent he could have still been on your return and filed his return as well.  He would need to indicate on his return that he "Can be claimed as a dependent on someone else's return."  

To be a dependent he needs to meet all the tests in one of the two categories below.  If he fails any test in both categories he cannot be a dependent.

To be a qualifying child: 

• The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them.

• The child must be (a) under age 19 at the end of the year and younger than you (or your spouse if filing jointly), (b) under age 24 at the end of the year, a student, and younger than you (or your spouse if filing jointly), or (c) any age if permanently and totally disabled.

• The child must have lived with you for more than half of the year.

• The child must not have provided more than half of his or her own support for the year.

• The child must not be filing a joint return for the year (unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid).

To be a qualifying relative:

• The person can't be your qualifying child or the qualifying child of any other taxpayer.

• The person either (a) must be related to you in one of the ways listed under Relatives who don't have to live with you , or (b) must live with you all year as a member of your household (and your relationship must not violate local law).

• The person's gross income for the year must be less than $4,300.

• You must provide more than half of the person's total support for the year.

Publication 501