My daughter was 16 years old in April 2021 when she received a $1400 stimulus payment. She turned 17 in June 2021 and is still a dependent and doesn't have any income. Do I need to report her $1400 stimulus payment, and if so, how & where?
In the federal interview you will be asked about any stimulus payments you received. Those would include payments to you (and spouse if a joint return) and any payments for any dependents. The reason the question is asked is to determine if you received all that you are eligible for. Any missing amounts will be credited to your tax return as a a Recovery Rebate Credit.
If you did not report all the stimulus you received your return would add a 1400 credit. Once the IRS started processing your return they would see that you were already paid for the three people on your return and delay processing your return (refund) while they figure out the disconnect.
What? Your teenager should not have received a $1400 stimulus payment herself! At that age she can be claimed as someone else's dependent---so how did she get a $1400 stimulus payment? Dependents are not eligible to receive stimulus payments.
Or do you mean that YOU received a $1400 stimulus payment because you claimed her as a dependent?
Please explain clearly whose name/bank account that $1400 came in.
She did not receive the $1,400, you did. Since she was a dependent on the 2020 tax return you would have received the $1,400 3rd stimulus payment for her in 2021.
On your 2021 tax return you need to report the total of all 3rd stimulus payments you received in 2021.
The 3rd stimulus payments received are entered on the 2021 tax return after you complete the federal tax return and are in the Federal Review section of the program.
The check came as
<my daughter's name>
<my wife's name> FOR
<street address>
<City, State, zip>
In the federal interview you will be asked about any stimulus payments you received. Those would include payments to you (and spouse if a joint return) and any payments for any dependents. The reason the question is asked is to determine if you received all that you are eligible for. Any missing amounts will be credited to your tax return as a a Recovery Rebate Credit.
If you did not report all the stimulus you received your return would add a 1400 credit. Once the IRS started processing your return they would see that you were already paid for the three people on your return and delay processing your return (refund) while they figure out the disconnect.
I am using premier Turbotax destop version and I did find where I should report how much I had received for stimulus check . My son had been born 3/2020 and I did not receive any stimulus check for him.
Please enter what you DID receive as stimulus payments.
The "missing" payment (for your new-born) should be added to your return as a credit on your 1040 line 30.
I do not find the tab or the section in turbo tax premier to enter the amount had received.
You can enter the stimulus payment you received in the Federal Review section of TurboTax. Be sure you enter the exact amount you received. This year, a common error is entering less than someone received which is causing delays and adjustments in refunds.
My TurboTax federal Review doesn't have the option add stimulus check Attached please find picture.
@EMADSORIAL Ok. So the stimulus or the "Recovery Rebate Credit" will appear on line 30 of your form 1040. It will only appear if you are owed it so make sure that you only enter the exact amount that you received. If you are still due a $1400 payment for your newborn and your income has not increased enough to change the amount that you are due you should be good to go.
In order to get back to the entry for the recovery rebate credit you need to go through the walkthrough that the software provides. Go to the 'Other Deductions and Credits' section and choose 'Walk me through everything'. When you get to the end of the other deductions and credits it will ask how much stimulus you received. Correct it to what you actually got - make sure to get this right or it will delay your return significantly - and then continue on. If you are still due a stimulus you should see it added to your refund.
@RobertB4444 . I follow the instructions you gave me but I still turbo tax didn't ask me for payment I had received. Attached please find photo.
TurboTax will skip the stimulus screen if you are not qualified to receive a Recovery Rebate Credit based on your 2021 income @EMADSORIAL.
Try this:
You should see Let's double-check the amount you received. If you don't see this screen, it means you are not qualified to receive the stimulus based on your 2021 info.
Generally, if you were a U.S. citizen or U.S. resident alien in 2021, you were not a dependent of another taxpayer, and you either have a valid SSN or claim a dependent who has a valid SSN or ATIN, you are eligible to claim the 2021 Recovery Rebate Credit.
Your credit amount will be reduced by the amount of your third Economic Impact Payment. It is then reduced if the adjusted gross income (AGI) amount on line 11 of your 2021 Form 1040 or Form 1040-SR is more than:
No credit is allowed when AGI is at least the following amount:
Hello! Your answer is not quite what happens.
As of today at least, the turbotax (deluxe desktop) software does not give you the opportunity to input any "dependents who may have received the stimulus payment, or the amounts". IT SHOULD!
And, if you arbitrarily add the dependent's amounts to "your" or "your spouse's" payment amounts, then those amounts will not match the IRS letters or amounts received for you and/or your spouse, and may create an error; (not sure here)!
Also, the $1400 amount you say would be credited may or may not be the correct amount, depending on the taxpayer's situation.
The program doesn't give you the option to show your dependent's stimulus payment because dependents don't receive stimulus payments.
A stimulus payment for a dependent is sent to the person who claims that dependent.
If you have a dependent that you claimed in 2020 and 2021, their stimulus payment is paid to you and is included on your letter.
@EMADSORIAL Sounds like you don't qualify for any more.
To get to the stimulus questions in TurboTax at any time, you can search for stimulus or recovery rebate credit then hit ENTER and there should be a Jump to link
If you are trying to trigger it,
Click on Other Tax Situations at top
Click on Let's get started
Answer some questions then Continue
Then click on Let's keep going
Next screen is for the Third Stimulus, if you qualify
If you did not get prompted to enter your stimulus information, that means you either:
The Recovery rebate credit on line 30 is only if you didn't get the Stimulus payment or qualify for more.
Hello! In this case, my family member was NOT my dependent in tax year 2020, so received the stimulus payment for 2021 based on that info. However, during 2021, they WILL be my dependent.
Since they received the stimulus payment, I want to make sure that the dialogue boxes for my (married filing joint) return also asks to reconcile any DEPENDENTs who may or may not have received stimulus payments in 2021, with those amounts.
My point is, in response to the original person's comment about just (my words) "lumping it in to the total that myself and/or spouse received" will throw off the numbers for all 3 of us, when comparing to letters and/or IRS information.
(In my case, the dependent is not required to file for 2021.)
To allow for this, I think the TT software needs to ask:
1. Did any of your claimed dependents for 2021 receive stimulus payments in 2021?
2. Then ask: If that dependent also filed their own return for 2021, did they claim the stimulus payment there (on their own return) or not? If claimed there, no need to do anything. If not claimed there, or they did NOT file a return, enter their number here.
Hello! In this case, my family member was NOT my dependent in tax year 2020, so received the stimulus payment for 2021 based on that info. However, during 2021, they WERE my dependent.
Since they received the stimulus payment, I want to make sure that the dialogue boxes for my (married filing joint) return also asks to reconcile any DEPENDENTs who may or may not have received stimulus payments in 2021, with those amounts.
My point is, in response to the original person's comment about just (my words) "lumping it in to the total that myself and/or spouse received" will throw off the numbers for all 3 of us, when comparing to letters and/or IRS information.
(In my case, the dependent is not required to file for 2021.)
To allow for this, I think the TT software needs to ask:
1. Did any of your claimed dependents for 2021 receive stimulus payments in 2021?
2. Then ask: If that dependent also filed their own return for 2021, did they claim the stimulus payment there (on their own return) or not? If claimed there, no need to do anything. If not claimed there, or they did NOT file a return, enter their number here.
You only enter the Stimulus payment you actually got. Then you will get the Stimulus for the dependent you are adding if you qualify and your income isn't too high. You do not report the Stimulus payment they got or that anyone else got for them. They can keep the payment they got. They don't have to return it.
You can really get it now. It is based on 2021 return. It's legit. Their 2020 return was just used to send out the checks fast. It's a IRS loophole.
See Question 15 here
TURBOTAX SOFTWARE SCRIPT BUG!
The (Win Desktop Deluxe) Turbotax software does not ask if you have received a Stimulus Payment, if you are claiming that you are a dependent this tax year (2021).
Another family member was NOT a dependent in 2020, and based on that info, DID receive a $1400 stimulus payment in 2021. However, for tax year 2021, they ARE a dependent.
When you "check" the "can you be claimed as a dependent on someone else's return?" box, Turbotax never asks,
"Regardless of you being a dependent this year, did you get a Stimulus payment in tax year 2021?" and allow you to report it.
Help!
It does not need to ask you if you got a stimulus payment if you were a dependent, because if you have already stated on your 2021 tax return that you can be claimed as someone's dependent, you are not eligible to get the recovery rebate credit. And....if you already received it last year, you do not have to pay it back.
On the dependent's return........
If you got your own Stimulus payment based on 2020 or 2019 when you filed as independent but you are now a dependent for 2021. Dependents won't get asked if they got the Stimulus payment. They don't qualify for any of the Recovery Rebate Credit and don't need to say they got it. And don't need to pay it back.
Then the person who is claiming you this year can get it again for you (if they qualify and their income isn't too high). They do not have to report the payment you got.
The 3rd Stimulus payment is really based on 2021. The IRS just sent the checks out using 2020 to get them out fast.
For the person claiming them this year.......
If you are claiming them this year then you do get it now. It is really based on 2021. And they don't have to pay theirs back. The IRS just used 2020 returns to send the checks out fast.
See Question 15 here
My family member who filed "independently" for 2020, received the $1400 in 2021 and got a letter. This tax year (2021), that same person will be a "dependent" on my tax return. I and the rest of my family got no other stimulus payments and have received no other letters.
I am married filing joint for 2021, with 2 dependents; one of those dependents is the person who got the $1400 (above) in 2021.
Turbotax wants to give me $5600 credit ($1400 for each of us) but since the one (new) dependent already got their $1400, I entered that into a box as an offset, so the net credit I get shows as $4200 (the other 3 * $1400). I think that's the way I will file.
However, the IRS Q&A on the "2021 Recovery Rebate Credit - Topic E: Calculating the 2021 Recovery Rebate Credit" is confusing (surprise!).
On Q15, it says (paraphrased), "include only the third EIP amounts issued to you (and spouse if filing joint). DO NOT INCLUDE THIRD EIP AMOUNTS ISSUED TO ANYONE ELSE, EVEN IF THEIR PAYMENTS INCLUDED AMOUNTS FOR AN INDIVIDUAL WHO IS YOUR QUALIFYING DEPENDENT FOR 2021."
On Q16, it says (to the former independent person who is now dependent) "YOU ALSO CAN'T CLAIM THE 2021 RECOVRY REBATE CREDIT" [.... But, what if you are not trying to claim it because you ALREADY got it!?]
And Q17 adds another slight spin......
Bottom line: I'm trying to "report" the actual receipts, not get any new credits that I'm not entitled to. I just want to reconcile it correctly, but the TurboTax software is very confusing and the IRS instructions are not clear.
Again, Turbotax wants to give me $5600 credit ($1400 for each of us) but since the one (new) dependent already got their $1400, I entered that into a box as an offset, so the net credit I get now shows as $4200 (the other 3 * $1400). I think that's the way I will file.
Comments?
@kdw2020 The person who received the $1400 last year does not have to pay it back. If that same person can now be claimed as a dependent on YOUR tax return, you can get the $1400 as a recovery rebate credit on your return. Congress left a big loophole that allows it. You do not say anything on your own return about the $1400 received last year by your dependent.