How should I record the amount of stimulus check received for my daughter , who was dependent in 2019 and not a dependent in 2020?The payment has been issued in my name

[taxmen2021]

My daughter is 17 years old in 2020 and had an income under $12, 000. Should I claim her as dependent or file a separate tax return for her and not claim her as dependent?

[KrisD15]

If she is your dependent, you claim her on your tax return. 

You can choose to NOT claim her, but if she is a dependent, she can't file a return claiming to not be a dependent.  

A “Qualifying Child is a person that meet these tests:

• WHO IS THE PERSON? The person must be your son, daughter, stepchild, eligible foster child, brother, sister, half-brother, half-sister, stepbrother, stepsister, adopted child or a descendent of any of them.
• HOW OLD IS THE PERSON? The person must be under age 19 or, if a full-time student, under age 24. They must also be younger than you (or either you or your spouse if you’re filing Married Filing Jointly)

There is no age limit if your child is permanently and totally disabled.

• WHERE DOES THE PERSON LIVE? The person must have lived with you for more than half the tax year, but several exceptions apply such as school and military service.
• WHO SUPPORTS THE PERSON? The person cannot have provided more than half of their own support. It doesn’t matter how much they earned.
• HOW WILL THIS PERSON FILE THEIR TAX RETURN (IF THEY HAVE TO FILE ONE)? The person can’t be filing a Married Filing Jointly tax return, although there is an exception to that.

A QUALIFYING RELATIVE IS A PERSON THAT MEETS THESE TESTS:

                This person can’t be a qualifying child to you or anyone else.

                This person must have lived with you OR be a relative of yours.

                This person must have gross income of less than $4,300

                This person must have gotten more than half their support from you.

[taxmen2021]

Hi KrisD15 .Thank you for your answer. What should I do in my situation? Should I claim her as dependent or not? If I do not claim her as dependent and she will file her income tax a s a Single, what amounts should she enter under Stimulus payment received? She has not received any, because they have been issued to my name. Thank you again

[KrisD15 · Accepted solution]

Did she supply more than half her own support? Does she carry her own health Insurance, Auto Insurance etc. in order to not be a dependent?

If she is not a dependent, and she files a 2020 tax return, she would report the first stimulus even though it was issued to you. If she reports not getting ether, TurboTax will credit her for both. The IRS is saying they will check, but you don't want to fie an error if you don't have to. 

[taxmen2021]

Hi KrisD,

Thank you very much or your best explanation. I just got confused about dependent status for a child with $4,300 earnings requirement. Thank you again.

[taxmen2021]

Hi KrisD 15,

May I claim her as a dependent on my tax return and file separate tax return ( she earned about $7,000.00)  for her and mark on her tax return that she was claimed as a dependent on somebody's else  tax return?

Should I still report the first stimulus check issued to me on her tax return? Please let me know.

Thank you.

[DMarkM1]

You may do that, however if she marks that she "Can be claimed as a dependent on someone's return," she will not be eligible for the Recovery Rebate Credit, whether or not you actually claim her on your return.

If your daughter files a return, she does not report any stimulus payments that you received. She did not receive any stimulus payments.

Here is a link with more information on the Recovery Rebate Credit.

[taxmen2021]

Thank you DMarkM1. What is your opinion, how should I file my family tax return for 2020? Should I file as married jointly and include my daughter as dependent and file separate return for her with mark "Can be claimed as a dependent on someone's return" or file mine and wife's return and not claim my daughter as dependent and file another return for my daughter as single? If I do that, should I answer the question that my daughter received both Stimulus checks? I have checked the tool on IRS website for the status of stimulus check for my daughter and it says " does not have a record of the stimulus checks". Thank you.

[DianeW777 · Accepted solution]

First, the rules for claiming a dependent are relevant. If your daughter pays more than half of her own support, then you will not be allowed to claim her.  This is not a choice or optional but rather a rule on who has the right to claim a dependent. If your daughter paid more than half of her own support, then you cannot claim her.  If she did not, then only you can claim her.

As stated by @DMarkM1, if your daughter files a return, she does not report any stimulus payments that you received. She did not receive any stimulus payments.  Since she did not receive any she will not report any stimulus payments on her return.

A dependent of another taxpayer is not allowed a stimulus payment. If you are eligible to claim your daughter as a dependent, then she will not be allowed the second stimulus.

Qualifying child

• They're related to you.
• They aren't claimed as a dependent by someone else.
• They're a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
• They aren’t filing a joint return with their spouse.
• They're under the age of 19 (or 24 for full-time students).
  • No age limit for permanently and totally disabled children.
• They lived with you for more than half the year (exceptions apply).
• They didn't provide more than half of their own support for the year.

[taxmen2021]

Thank you DianeW777.