Qualifying Children for Coronavirus Stimulus

[jackieg]

How will the qualifying children be calculated.   I filed for 2019 already and did not claim my daughter.  My ex-husband has not filed for 2019, and this is his year to claim her.  If they use my 2019 and his 2018, there will not be a tax return used where she was claimed as a dependent. 

[JohnW222]

The stimulus amounts will be based on the information from a taxpayer's most recent tax return -- generally the 2019 return, but the 2018 return if they haven't yet filed their 2019 return.

Please check for updates at TurboTax’s Your trusted resource for tax information updates during COVID-19 page, and the IRS’s Coronavirus Tax Relief page.

[jackieg]

I am aware of this - which is the reason for my question.  If they use my 2019 return and his 2018 return, how will our daughter be included?

[CatinaT1]

Some of these questions have not been addressed yet by the government.  Check here for the latest updates: https://www.irs.gov/coronavirus

[NCperson · Accepted solution]

@jackieg - 

I've come across more information on how these stimulus rebates will work.  The link  below is the best analysis I have come across and should help  understand 'who claimed who' and how this appears it will settle out:

https://www.cbh.com/guide/alerts/cares-act-what-you-need-to-know/

(scroll down to "Recovery Rebates")

Basically, the stimulus payments are an advance against 2020 tax returns. 

When we complete 2020 tax returns, we will each re-calculate the stimulus payments based on 2020 tax returns  (income, qualifying children, etc).  

Whatever that re-calculated number is LESS what you already received will be an additional credit on your tax return, which would increase your refund or reduce how much you owe.  Let's say you didn't claim a child in 2019 but did in 2020 as an example that could create the credit

And here is the kicker, if that recalculated number is negative (meaning your stimulus payment was higher than you were really entitled to based on your 2020 tax return), YOU WILL NOT owe that money back.  Let's say you claimed a child in 2019 who was 16 but in 2020 they were 17 as an example on how the recalculated number could be negative,  (a 16 year old is a qualifying child for the $500 but the 17 year old is not eligible)