stimulus

[patsfan761]

Were the first 2 stimulus payments for tax year 2020?  I am doing my sons taxes (in 2019 I claimed him as a dependent as he is on disablility and did not work. He's 31 so he was not eligible for the stimulus I was told.)  He worked several part time jobs in 2020 (but earned less than the amount required to file) but I was told he could get the most recent stimulus if he filed.  I did his taxes and it looks like it is adding in the $600 and $1200 from the first two stimulus payments.  I don't want to file if this is incorrect.

Help!

[NCperson]

let's back up a little bit.

Did he earn more or less than $4300 in 2020?

the first question is whether your son CAN be claimed by you.  Whether you do or not is not material.  if he CAN be claimed by you, then that is the end of the story as he must check that box on HIS tax return and he is not eligible for the stimulus. And that is true, whether or not you claim him. You always have the option to claim him, but from his perspective, whether you CAN claim him is the same answer whether you do or not. 

Suggest running through this tool to confirm whether he is your dependent or not

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

if more than $4300 you can NOT claim him, In that instance he is NOT to check the 'CAN someone claim' you check box and he'll see $1800 on Line 30 of Form 1040 for the stimulus payments. 

if less than $4300 (and presumably you provided more than 50% of his financial support), he has to check the box stating someone CAN claim him and he is not eligible for the stimulus. 

[MinhT1 · Accepted solution]

TurboTax is correct.

The two first stimulus payments were for tax year 2020.

If your son is not a dependent in tax year 2020, he is eligible for both stimulus payments and he can claim them as the Recovery Rebate credit when he files his 2020 tax return.

[Bsch4477]

Be sure on his return that in the personal information section you check the box saying that someone else can claim you. As a dependent he should not get the stimulus on his return. 

[patsfan761]

Sorry I thought I mentioned in my question that I could not claim him because he made too much.

[patsfan761]

As well as the most recent one that we just got?

[patsfan761]

We cannot claim him-he made over $4300.

[Opus 17]

---

@patsfan761 wrote:

We cannot claim him-he made over $4300.

---

Maybe, maybe not.  

Let's talk about the stimulus first.  If he can be claimed as a dependent, he must answer "yes, I can be claimed as a dependent by someone else" even if that person does not want to claim him.  That will disqualify him from the round 1 and round 2 payments.  You will not get a round 1 or round 2 payment for him as your dependent, but you will get a round 3 payment of $1400 because Congress changed the rules.

Now, for whether or not he can be claimed, there are 2 sets of rules.  He can't be a "qualifying relative" dependent if he has more than $4300 of taxable income.  However, he can be a "qualifying child" dependent if he is permanently and totally disabled, and lives in your home more than half the year.  For tax purposes, "disabled" means he can't perform substantial gainful work.  Many people who meet a medical definition of disability, can still perform work and are not disabled for tax purposes.  The ability to work a minimum wage job without special accommodations is generally proof of being able to perform gainful work, but working at a sheltered workshop in a protected environment is not considered performing substantial gainful work.

You started off saying he was disabled.   Even though his income disqualifies him from being a "qualifying relative" dependent, you will need to consider his ability to work, and where he lived, to determine if he can or can't be a "qualifying child" dependent.  If he can't be a qualifying child dependent (such as because he can perform gainful work), then it is perfectly ok for him to answer on his tax return that he can't be claimed as a dependent, and then he would get both the $1200 and $600 recovery rebates.  

[Steven F1]

Our college-age son was a dependent on our return in 2019 and the appropriate box (someone else can claim you as a dependent) was checked on his return. The tax statuses will be the same in 2020 (dependent on parent's return and someone can claim you as a dependent on his return). 

For some reason, he received the first stimulus payment. How is this claimed on his 2020 Federal return?

[Opus 17]

You don’t. If he answers “yes“ I can be claimed as a dependent, he won’t get a question about the stimulus payments or economic recovery rebate. It’s just an IRS mistake, it doesn’t have to be paid back or reconciled.

[NCperson]

on the other hand, you could of your own free will, return it to the IRS 😇