My son were claimed as dependents by my parents in 2019. They received both the $500 and $600 stimulus for my child. Do I have to enter $1100 as received stimulus for RRC

[jenniarcher-yaho]

do I have to subtract the amount my parents received for my son via the 2 stimulus payments, or do I get to claim the entire RRC?

[ErnieS0]

Yes. You can claim the entire RRC  if you meet the eligibility requirements for the Recovery Rebate Credit, the amount of your credit may include up to $1,100 for a qualifying child you are claiming as a dependent on your 2020 return. The child must be under the age of 17 at the end of 2020 to be a qualifying child for the credit.

When you answer the tax software questions or complete the Recovery Rebate Credit Worksheet, include only the Economic Impact Payment amounts issued to you (and your spouse, if filing a joint return for 2020). Do not include Economic Impact Payment amounts issued to anyone else, even if their payments included amounts for an individual who is your qualifying child for 2020.

Anyone with income of $72,000 or less can file their federal tax return electronically for free through the IRS Free File program. The fastest way to get your tax refund is to file electronically and have it direct deposited - contactless and free - into your financial account. You will need to provide the routing and account numbers no matter which option you choose - bank accounts, prepaid debit cards or mobile apps.

[jenniarcher-yaho]

thanks for getting back to me. To be clear you are saying that even though my parents received $1100 in stimulus for my son in 2020, I am allowed to claim the entire credit and not list the money received by my parents on my return? I just want to make sure because it feels a little like double dipping and do not want to do anything incorrect.

[DawnC]

That is correct, you don't have to report any stimulus payment that you did not receive.   The IRS has stated that amounts received in error, do not need to be paid back, so your parent can keep those payments.   The advance payments were based on prior-year returns.   However, the actual recovery rebate is based on your 2020 tax situation.   So, if you are eligible to claim the child on your 2020 return, you can claim the credit.  

See QD16 - where it states - Do not include Economic Impact Payment amounts issued to anyone else, even if their payments included amounts for an individual who is your qualifying child for 2020.