Do I need to report my 16 year old dependent's $1400 stimulus payment and if so how & where?

[VolvoGirl]

@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:

1. Filed as a dependent being claimed on another tax return, or 
2. have an AGI too high to claim the recovery rebate

The Recovery rebate credit on line 30 is only if you didn't get the Stimulus payment or qualify for more.

[kdw2020]

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.

[kdw2020]

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.

[VolvoGirl]

@kdw2020   

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

2021 Recovery Rebate Credit — Topic E: Calculating the 2021 Recovery Rebate Credit | Internal Revenu...

[kdw2020]

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!

[xmasbaby0]

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.   

[VolvoGirl]

@kdw2020  

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

2021 Recovery Rebate Credit — Topic E: Calculating the 2021 Recovery Rebate Credit | Internal Revenu...

[kdw2020]

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......

https://www.irs.gov/newsroom/2021-recovery-rebate-credit-topic-e-calculating-the-2021-recovery-rebat...

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?

[xmasbaby0]

@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.