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posted Mar 20, 2021 6:54:08 AM

I qualify for 3rd stimulus based on this year's taxes but not for the prior 2 as I was a dependent. Turbotax states I am owed a rebate for the first 2. How do I correct?

I was a student but my parents did not qualify for stimulus money.  I am no longer a dependent but Turbotax doesn't have a place to clarify this.

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1 Replies
Employee Tax Expert
Mar 20, 2021 7:23:11 AM

As long as you meet the requirements for the Recovery Rebate Credit, your return is probably correct.  

 

Essentially, you may not have been issued stimulus payments because you were a dependent in 2019.  But as the stimulus payments were advance payments made during the 2020 income tax year, you would be eligible if you meet the requirements when filing your 2020 income tax return.

 

The stimulus payment amounts issued in 2019 or in January 2020 were based upon your 2018 or 2019 income tax returns filed.  They were essentially advance payments to help taxpayers through when everything slowed down due to the pandemic.

 

The amount of the Rebate Recovery Credit is based upon your actual 2020 income tax return you file.  Therefore, if you meet the criteria for the credit, you will receive it when you prepare your 2020 income tax return.  The credit is intended to give those who should have received a stimulus payment but never did a tax credit on their tax returns.  Any excess credit is then refunded to you if there is an overpayment on your tax return.

 

Please see the attached link for more information on who can claim the credit.

 

Recovery Rebate Credit eligibility