Stimulus for new non-dependent

Forum|Forum|4 years ago
January 29, 2022
1 reply
6 views

2021 is the first tax year my US cit daughter is no longer our dependent. She did not get a stimulus check in 2020 (as expected) or 2021 (likely given her earlier status). Given she is not a dependent in 2021, can she claim the credit on her 2021 taxes (her income qualifies)? Does it matter that most of her income is excluded as Foreign Earned Income?

ZoltanB45

Level 9

Yes she will qualify for the 3rd stimulus. In preparing her tax return, she will be asked if she received the $1400 payment. It will either increase her refund or reduce her liability by that amount. Keep in mind she must also enter in the foreign income she earned. Depending on the taxes paid to the foreign country, she may still owe the IRS.

When you get to that stage, use this link to help enter it.foreign income in Turbo Tax

chrisghAuthor

Level 4

Thank you. One follow-on. She has entered and is able to exclude all of her foreign income given it's under the $108,700 limit. She also paid foreign taxes, but can not get the foreign tax credit given she's excluding all of her foreign income. Turbo tax has noted that it won't have the foreign tax credit form (#1116) ready for a while -- and will not allow her to file. Is there any reason (e.g., record for the future of foreign tax paid) to even fill out the foreign tax Credit form if she knows she's not eligible or does not want to claim it? If there is no reason to do it, is there a way to force turbo tax to skip it (can we just delete it from the forms list)?

Vanessa A

Level 15

Yes, you can just delete it from the forms, however, if there are any supporting worksheets that you may have answered questions for, you will need to delete the worksheets first, then the form.

There is no reason to include the form if you are not trying for the exclusion/credit/deduction.

To delete the form using TurboTax Online click the following: