If I was claimed in 2019 as a dependent but not 2020, can I receive the stimulus payment?

[halelifra]

I am 20 years old and my parents claimed me in 2019 as their dependent for tax purposes, but for 2020 taxes I am not being claimed as an independent. Can I still receive the stimulus payments?

[NCperson]

yes, you would be eligible with this caveat: 

the real question is CAN YOU be claimed by your parents.

if they COULD claim you but decide not to, you are not eligible for the stimulus.

if they CAN'T claim you, then you are eligible for the stimulus and the $1200 should appear on line 30 of Form 1040.

what changed between 2019 and 2020 that they could claim you in 2019 and they can't in 2020?   

[halelifra]

I go to college in Texas and my parents live in Michigan. My dad is a retired service member and I was using his GI Bill benefits to pay for my tuition in 2019, but did not in 2020. Otherwise I haven’t lived with my parents since 2018 and they have not paid or helped me with any bills since then.  My dad spoke to a tax specialist last year and said he had to claim me as a dependent in 2019 because I was using his benefits, but I did not this year. 

[NCperson]

then sounds like they can't claim you in 2020; just follow the prompts in TT and watch that line 30 has $1200 on it when you are complete. 

[halelifra]

Okay awesome, thank you so much! 

[crmothorpe]

Here's a screwy situation...  Since the third stimulus payment can be based on 2019 or 2020 taxes, I have a situation.   In 2019 I could claim my daugther as a dependent, so the Federal government deposited money into my account that included $1,400 for her recently because I hadn't filed my 2020 taxes yet.  Now I am going through helping my daughter do her 2020 taxes and she IS NO LONGER MY DEPENDENT, and TurboTax is saying that she should have qualified for stimulus money.  Well, only because she is no longer my DEPENDENT.  If I had filed my 2020 taxes early enough, I wouldn't have received the $1,400 for her.  Now TurboTax is asking if she received a stimulus check, and she didn't, but I of course did.  Seems like a problem....

[NCperson]

not a problem.  it is the way it works and it is possible for your child to receive money and for you to receive money for her as well.

The first two stimulus payments were ESTIMATES based on either the 2018 or 2019 tax data, what ever was avaible,

But the ACTUAL payment (the 'recovery credit') is based on the 2020 return

if the ACTUAL is greater then the ESTIMATE, you get the difference on Line 30.

if the ESTIMATE is greater than the ACTUAL, you don't own the money back.

work thought those last 2 statements for both your situation and your daughter's.  any you will see your family may have been received two benefits for the same child; totally legal - and the IRS knew this would occur. 

the 3rd stimulus payment has nothing to do with 2020 taxes, so please put that part of the equation to the side.  That payment is part of the 2021 tax return for next year,. 

[sundalunda]

You can find the answer here:  Recovery Rebate Credit — Topic B: Eligibility | Internal Revenue Service (irs.gov)

 See Question QB9, and for your parents, QB3.  You may be able to get all of the Economic Impact Payments that were sent out last year and this year, and your parents can keep the money they received as well.  I am going to study this a little more to be sure I understand this correctly.  Good Luck!!

[NCperson]

here is the scenario

let's say Mother claimed daughter on 2019 tax return, but in 2020 daughter was independent.

Mother has not yet filed 2020, but the daughter has

for the mother, the IRS will send $2800 TO THE MOTHER because on the 2019 tax return, the last one that was available, the daughter was listed.

for the daughter, the IRS will send $1400 TO THE DAUGHTER because the daughter submitted a 2020 tax return and did NOT check the box indicating someone else 'can' claim her.

When we get to the 2021 tax return, the mother's tax return will show 'too much' was given to her (given $2800 but only entitled to $1400 based on 2021 tax return), but by law, it does not have to be returned.  The daughter's tax return will show she received exactly what she was due. 

[ahutchison2]

What if my parents are not claiming me because I am not in a master's program and FAFSA considers me not independent?  How should I answer the question for the stimulus check.  My parents received the money, but not the amount I would have received as an independent.

[DMarkM1]

The question on your return is "Can you be claimed as a dependent?"  Below are the criteria for a qualifying child and a qualifying relative.  If you fail at least rule in each set then you "Cannot be claimed as a dependent."  

If you file a 2020 tax return as a US citizen with a valid social security number, made less than $75,000 and no one "can" claim you on their 2020 tax return then you are eligible for the full amount of stimulus for rounds one and two (1200 and 600).  If you did not receive any of those payments they will be added to your 2020 tax return as a Recovery Rebate Credit.  

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

If your parents claimed you on their 2019 return they most likely received the third round of stimulus for you (1400) based on that return.

Qualifying Child:

1. The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them.

2. The child must be (a) under age 19 at the end of the year and younger than you (or your spouse if filing jointly), (b) under age 24 at the end of the year, a student, and younger than you (or your spouse if filing jointly), or (c) any age if permanently and totally disabled.

3. The child must have lived with you for more than half of the year.

4. The child must not have provided more than half of his or her own support for the year.

5. The child must not be filing a joint return for the year (unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid).

Qualifying Relative:

1. The person can't be your qualifying child or the qualifying child of any other taxpayer.

2. The person either (a) must be related to you in one of the ways listed under Relatives who don't have to live with you , or (b) must live with you all year as a member of your household (and your relationship must not violate local law).

3. The person's gross income for the year must be less than $4,300.

4. You must provide more than half of the person's total support for the year.

[NCperson]

@ahutchison2 - here is the issue.

Your parents have the option to claim you as a dependent or not claim you; the IRS doesn't care.

But from your perspective, what your parents decide to do doesn't change the answer to the question CAN some else claim you.  

it is a confusing subject, and best if you just take 5 minutes and complete this IRS tool.  Answer the questions as if you were your parents; it will tell you if they CAN claim you or not

https://www.irs.gov/help/ita/whom-may-i-claim-as-a-dependent

If you can't be claimed by someone else, then yes, you can claim the Recovery Credit and it will be on Line 30 of your 2020 tax return.  The fact that you were a dependent in 2019 is immaterial.