The stimulus check is an advance on a credit you can receive on your 2020 tax return. If something went wrong or you did not get the stimulus check this year, you can get it when you file your 2020 return in early 2021—if you are eligible.It will end up on line 30 of your 2020 Form 1040.
this is one of those 'crazy' situations of the stimulus program.
BOTH stimulus payments were an estimate based on 2018/2019 tax returns, but what REALLY matters is the 2020 tax return. If you are owed stimulus, it will be reflected on the 2020 tax return; if you received too much stimulus, you don't have to return it.
So your ex received the stimulus because he claimed the child on the 2019 tax return (and probably will receive the 2nd stimulus as well) . But I assume you are claiming the child in the 2020 tax return which will create a tax credit on Line 30 (assuming you are eligible - most are).
does that mean that the IRS will be paying out the stimulus twice on the same child and neither parent is required to return the excess? Yup!
Dur to this *special* circumstance you really need to wait until the end of January at the earliest to file the return ... at that time you should be able to get BOTH stimulus payments for the child when you file the 2020 return and the program is set up to do so ... patience will reap it's own reward.
"Ex" received the first stimulus, and will likely get the $600 going out early now too. IF the Ex, does receive the second stimulus for that dependent, the Ex should properly give the $600 to the current custodial parent...but that's between them.
Perhaps the IRS is tracking SS numbers (Hope so) , and thus on the 2020 tax return, the Custodial spouse might get neither stimulus, even if he/she declares it was not received for that dependent on the tax form. Then a supposed refund might be reduced by the IRS such that both stimulus amounts, and a refund could even turn into an unexpected "balance due".
@SteamTrain - the law is very clear on this
1) the PAYMENTS were based on the 2018/ 2019 tax returns
2) the 'true up' is based on the 2020 tax return
3) there is no obligation to return the stimulus if #1 exceeds #2 (look at the last line of the Line 30 worksheet). That is specifically written into the law. Therefore there can be no such thing as 'balance due'.
that third bullet creates the situation where two non-married parents can each claim the child and not be obligated to return the stimulus.
I am not sure where the opinion or an ethical dilemma lies as Congress passed a set of laws that creates this situation. Maybe they intended for that to occur? Regardless, that is what they did - and they chose not to close that loophole with the 2nd stimulus!
No.....I agree, perhaps the law allows the loophole...I just think it shouldn't exist...
Don't care it the first one issued early in 2019, exceeds what would be allowed when 2020 is actually filed, I just don't think that a dependent should be allowed to be used twice for the exact same stimulus by two (now) ex-spouses.
When one tries to please everyone there are bound to be some who will not be happy ... these stimulus payments are a slippery slope ... should have just been a credit on the return and not an advance but that would not have gotten it out fast enough for some.