Received 3rd stimulus, $2800 total, $1400 for my dependent child, he was my dependent in 2020 but will not be 2021, will I have to pay back $1400 I received for him?

[VolvoGirl]

@TopMen   Yes that can happen.  In fact it's is a Common situation.   And also the other way around.  Like if someone filed their own 2020 return not as a dependent and got their own 1,400 and then is a dependent on someone's 2021 return that person can get another 1,400 for claiming them.   

[tsmitten]

ok please help. my daughter claimed herself and her son in 2020, her fiancé claim himself and his daughter on his 2020 tax return. They were not living together until later in 2020. Daughter received third stimulus of 2800, and 1800 CTC, fiancé received third stimulus of 2800 and 1800 CTC. They together had a son in April 2021. Fiance' s daughter is claimed by mother on 2021 return. New baby received $0. not sure what to do. If it put in what was received the baby gets nothing? Please help.

[VolvoGirl]

Yes you should get the Recovery rebate credit for a baby born in 2021.  See IRS question 8

2021 Recovery Rebate Credit — Topic C: Eligibility for claiming a Recovery Rebate Credit on a 2021 t...

Be sure you said the new baby lived with you the WHOLE YEAR!  Go back and check that under My Info.   Maybe delete the baby and re add him.  

If you had a child born in 2021- Add them under My Info. You need to answer 2 questions…..

Did your child live with you for the whole year? Answer YES even if they were born late in the year (even on Dec 31).

Then was at least half of child's expenses paid by CHILD? Usually is NO.

If you qualify the 1,400 Recovery rebate credit will be on line 30 and either increase a refund or reduce a tax due.

You also should get the Child Tax Credit 3,600 for them on line 28.

[prink74]

I'm so glad you explained, but I have an issue - 2 people I know, whose kids were dependents in 2020 and independent is 2021 were disallowed the $1400.  How can I help them to claim that money?  Will an amendment be accepted or how can it be corrected?

[Vanessa A]

If the kids that were dependents but are now independent file a tax return, they can claim the $1,400 when they file their return.  If they already filed and did not claim the recovery rebate, yes, they would need to amend their return for 2021 to claim the rebate. 

[prink74]

you guys are great and quick to answer!  they did claim the $1400 on their returns and it was denied.  should I advise them to amend with an explanation?

[Vanessa A]

No, if they claimed it and the IRS adjusted it, there may have been another reason why they were denied.  They would need to call the IRS at 800-829-1040 to see why.  They are the only ones that can answer that question.

This is a new credit and there does seem to be a lot of issues with the recovery rebate this year.  Below is the question of a dependent turning non dependent claiming the rebate.  The IRS says they can.  It was updated 12/10/21. 

Q B9. Dependents: I didn't receive the Economic Impact Payment because I was claimed as a dependent ...

A9. Maybe. If you cannot be claimed as a dependent on someone else's return for the 2020 tax year, you may be eligible to claim the Recovery Rebate Credit on a 2020 tax return if all other eligibility requirements are met.

[Diane2022]

Thank you so much for explaining this!  I have searched over and over on the internet and only got more confused.  I actually spoke with turbotax help today and they gave me the incorrect answer.   We had three adult children in college so claimed them in 2020.  We received the 3rd stimulus for all five of us.  Two had graduated in December, 2020.  So, in 2021 all three either started full time or part time jobs.  One moved in summer.  NONE were claimed as dependents on our 2021 tax return.  Now, one got a prompt on federal review that she was eligible for the $1400, another received the letter that he DID get the $1400 (doesn't think he did) and the other didn't see anything at all.  My Sunday's gone trying to make sense of it.  Thank you for your message!  I can move on. 

[TALK2VELDA]

Sounds similar to my situation.  My adult daughter, 36 yo, did begin staying with me in 2020 but I thought it was just a temp situation (long story, bad and long), so never gave a second thought to it.  I did not claim her for 2020.  She has, however, continued to stay with me. She has full access to the house, I let her fully use one of my vehicles, she eats some of my food, but I do not give her cash to buy anything, and she doesn't now have a real job so she definitely has less than $4300 income.  I want to claim her in 2021 as a dependent since I feel that what I do provide would equal more than 1/2 of her support.  The question I have is since she did receive the $1400 check in 2021 and I received my $1400 in 2021, can I really claim her now and be eligible for the amount I would have received for having myself and her as dependents on this year's taxes?   The money would really help but I don't want to get into a situation where I'd have to pay it back if we aren't really eligible for it given my own limited income.  

[VolvoGirl]

Yes.  If she made less than 4300 you can claim her and you can get the 1400 Stimulus for her even if she already got it.

You only enter the Stimulus payment you actually got.  Then you will get the Stimulus for the dependent you are adding if you qualify and your income isn't too high.  You do not report the Stimulus payment they got or anyone else got for them.   They can keep the payment they got.   They don't have to return it.

You can really  get it now.   It is based on 2021 return.   It's legit.   Their 2020 return was just used to send out the checks fast. It's a IRS loophole.

See Question 15 here

2021 Recovery Rebate Credit — Topic E: Calculating the 2021 Recovery Rebate Credit | Internal Revenu...

[TALK2VELDA]

Thanks!  I thought it sounded like I could but it's nice to hear it from someone else.  

[cherylgrimes1]

So, am I doing this wrong? We have a 22 year old daughter who we are not claiming this year. She is filing independently for 2021. We received 1400 each under our name, but I just answered that we received 2800, (not 4200), and she said that she got 1400 because technically it was for her, because we claimed her the year before. 

[VolvoGirl]

On her return she should say NO she didn't get it because you did.  She can get the 1400 based on 2021 and you don't have to pay it back. It is based on 2021.

What is on your 1040 line 30?  Should be blank since you are only qualified for 2800 and you entered you got 2800.  So that should be ok you didn't enter the 4200.

If you got a Stimulus payment for a dependent you aren't claiming for 2021 you don't have to pay it back.  And they can get it on their own 2021 return.   On their return they say NO they didn't get it - because you did.

The 3rd Stimulus payment is really based on 2021.  The IRS just sent the checks out using 2020 to get them out fast.

See IRS Topic B first question

Questions and Answers about the Third Economic Impact Payment — Topic B: Eligibility and Calculation...

[cherylgrimes1]

Thank you. I don't have anything on line 30. Should I go back and answer "4200"? I read the IRS link, and am still a little confused. We didn't claim her, but we could have. However she HAD to file because, although she had no earned income, she had 14k in unearned income from capital gains from a mutual fund account (1099-DIV). @VolvoGirl 

[VolvoGirl]

If line 30 is blank you are ok.  You don't need to enter the full 4200you got.  You only qualify for 2800 and you already got that (actually you got more).

What do you mean you could have claimed her?  That may change everything.  Even if she files a return you can still claim her if she qualifies as your dependent.  And she has to say on her return she can be claimed even if you don't claim her.