3rd Stimulus Check and dependent changes

[rossiram]

My husband and I received $5,600 for the third stimulus payment ($2,800 for filing jointly and $1,400 for each of our two children). This was based off our 2020 taxes where we correctly claimed both my son and my daughter as dependents. For 2021, our daughter does not qualify as our dependent. Will we have to repay part of our 3rd stimulus check? Or will it reduce our 2021 refund amount? We have not yet filed for 2021. 

[RobertB4444]

@rossiram You don't have to repay the $1400 that you received because it was sent out based on your 2020 return.  In addition your daughter can claim the credit if it was issued to you and she did not receive it.

[rossiram]

Thank you! Will this reduce the amount of my refund, or increase how much I owe?

[PattiF]

This will have no effect on the amount of your refund or how much you owe. 

Your daughter is eligible to receive the third stimulus payment since she is not a dependent for the tax year 2021.

She is eligible to claim the third recovery rebate for 2021 provided she no longer qualified to be considered a dependent. She was claimed as a dependent on your 2020 return, and you received the payment from the IRS. If you are not claiming her this year, and she is claiming herself, she can claim the recovery rebate. 

She would answer no to the question about the third stimulus if she is not a dependent for 2021. She can claim herself and take the credit since the payment did not go to her. You will need to report the stimulus received on your return but you don't pay it back.