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.
Nothing unethical ... both are based on the 2020 return and she will claim the child on the 2020 return.
Opinions vary:
"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.
@SteamTrain I don't agree with it either, but that is how Congress passed the law.....
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.
@Critter-3 - wait to we see all the complaints after January 15th...it took MONTHS for all the paper checks to go out in Stimulus #1 and now it has to occur in two weeks!
I have custody of my Grandson since August 2019. My sons stepmother claimed him for 2019 but I claim him 2020 and she took his stimulus money. How do I recover that ? I filed for 2020 but she may have filed before me and got his stimulus.
Have you already filed your 2020 return including your grandson as a dependent?
For the first two stimulus payments, did you claim the Recovery Rebate Credit on your 2020 tax return? The third payment will also be determined by your 2020 return. If you do not receive the third payment, you will be able to recover it on your 2021 return.
In TurboTax Online, to claim the Recovery Rebate credit please do the following:
Sign into your account and continue from where you left off
Click on Federal in the left-hand column, then on Federal Review on the top of the screen
On the next page titled Let's make sure you got the right stimulus amount, click on Continue
Follow the interview
TurboTax will determine whether you are entitled to any additional stimulus
Any stimulus amount remaining due to you will show as a credit on line 30 of your form 1040.
Does the divorce decree specify who is entitled to the exemption? If so follow it. Otherwise, who provides 50% or more support? You can still file as a head-of-household.
I already filed but she filed first and the irs doesnt know I have at that point... so she got the checks and won't give them up
@Bagmanss - Your post is confusing - and many don't understand how the stimulus and Recovery Credits work - it is possible that your ex-DIL has the stimulus but you have the Recovery Credit - and THAT IS HOW IT WORKS
if your ex-DIL received the stimulus for the child, then she keeps it. That is the law. the sti,mulus was an ESTIMATE of what everyone was to receive and was based on 2019 tax filings (or 2018 if 2019 wasn't available)
HOWEVER
these payments were 'an advance against 2020' tax return. That means that the IRS is using 2020 tax return (dependents, income, etc.) to determine what everyone is ACTUALLY due.
if that ACTUAL is more than the ESTIMATE then the difference is the 'recovery credit' and you will see this on Line 30.
if the ESTIMTE is more than the ACTUAL then there is no additional payment due and Line 30 will be zero; it doesn't have to get paid back, meaning Line 30 can NEVER be negative.
So for your situation,
if I assume that the ex-DIL claimed your grandson in 2019 but you claimed him in 2020, here is what occurred.
DID SHE ALSO CLAIM THE CHILD IN 2020? is that the issue?
for the ex-DIL, she ESTIMATE is $1100 - as she got the two stimulus payments for the grandson, but her ACTUAL is zero. She gets to keep the $1100 and Line 30 is zero.
for you, your estimate is zero, but your ACTUAL is $1100, because you are claiming the grandson in 2020. Your Line 30 is $1100.
if you read through that, yes, it does mean the IRS is paying out $2200 for one child.... That is the way it works.