Problem Solved! Thank you.

[SweetieJean · Accepted solution]

If she made more than $4300 of profit from the sale (or had other types of income than Soc Sec) , then NO.

[xmasbaby0 · Accepted solution]

No.   You cannot claim an adult dependent who had over $4300 of income ---not counting Social Security.  She had $10K of income that was NOT from Social Security so you cannot claim her as a dependent.  That means she can file her own 2020 tax return and receive all of the stimulus money too.  She can get the recovery rebate credit and the new $1400 stimulus check.   Good news for Mom!

When she files her 2020 return she must say that she cannot be claimed as anyone else's dependent for 2020 and she can use the recovery rebate credit in Federal Review to indicate that she has not yet received any stimulus money.

[swang0677]

Thank you so much for the answer. I filed "head of household" with her in 2019 and received the stimulus checks. If she files individually this year, should I still choose "she didn't receive the stimulus check"?

[VolvoGirl]

Right.  She didn't receive it, you did.  So she can get it again on her return.

If you were claimed as a dependent in 2019 but not in 2020, you can still get the Recovery rebate credit on your 2020 return even if your parents got it for you. And actually if you were over 17 in 2019 they did not get it by claiming you as a dependent. They only get it for dependents under 17. They don’t have to pay any back.

[xmasbaby0]

Make sure you indicate on her return that she did NOT receive any stimulus money so that it will be added to her refund.   It should show up on line 30 and carry down to the refund on line 34 of her Form 1040.