Our adult daughter: Tax Year 2019 - Adult dependent on our return Tax Year 2020 - Will file her own return Does she need to quickly file to get stimulus payments?

[MinhT1]

Yes, she needs to file her 2020 tax return to receive the stimulus payments as the Recovery Rebate credit.

As a dependent on your 2019 tax return, your daughter was not eligible and did not receive the stimulus payments.

If she is not a dependent in tax year 2020, she is eligible for both stimulus payments and she can claim them as the Recovery Rebate credit when she files her 2020 tax return.

In TurboTax Online, to claim the Recovery Rebate credit please do the following:

1. Sign into your account and continue from where you left off
2. Click on Federal in the left-hand column, then on Federal Review on the top of the screen
3. On the next page titled Let's make sure you got the right stimulus amount, click on Continue
4. Follow the interview
5. TurboTax will determine whether you are entitled to any additional stimulus
6. Any stimulus amount remaining due to you will show as a credit on line 30 of your form 1040.

[chris-soprych]

Thank you.

Concerning the upcoming stimulus payment, if she doesn't file until April 15th, will the IRS use our 2019 return and deposit money into our account, based on her 2019 status as our dependent child?

I'm trying to avoid this. I've read that the IRS uses the latest return to determine eligibility. It seems that the upcoming payments will go out before she files her 2020 return.

[JamesG1]

We do not have specific information on the income qualifications or procedures for the tax changes including a third stimulus payment because the measure has not been passed yet.  See here for the most current information on the American Rescue Plan.

IRS information updates can be found here.  TurboTax information updates can be found here.