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Level 2
posted Apr 9, 2022 3:10:23 PM

Third Round of Stimulus Payments

If a child was claimed in 2020 by one of his parents, and in 2021 he is economically independent and is filing his taxes for 2021, he can claim the third stimulus. 

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2 Best answers
Level 15
Apr 9, 2022 3:22:03 PM

If he truly can’t be claimed as a dependent he is eligible for the stimulus payment on his 2021 return. The parents don’t have to repay the stimulus payment that they received. 

Expert Alumni
Apr 9, 2022 3:26:45 PM

Yes. A child who was a dependent in 2020 but independent in 2021 can receive a Recovery Rebate Credit on their tax return even if their parents got a third stimulus payment for the child last year.

 

The IRS says: "No longer a dependent: Individuals who were claimed or could be claimed as a dependent on someone else’s tax return for 2019 or 2020 may now be eligible if they can’t be claimed as a dependent on someone else’s tax return for 2021."

 

See: Q C2. Not Eligible for Third Economic Impact Payments: If I wasn’t eligible for a third Economic Impact Payment, am I not eligible to claim the 2021 Recovery Rebate Credit?  (added January 13, 2022)

 

The parents don’t have to pay the money back.

2 Replies
Level 15
Apr 9, 2022 3:22:03 PM

If he truly can’t be claimed as a dependent he is eligible for the stimulus payment on his 2021 return. The parents don’t have to repay the stimulus payment that they received. 

Expert Alumni
Apr 9, 2022 3:26:45 PM

Yes. A child who was a dependent in 2020 but independent in 2021 can receive a Recovery Rebate Credit on their tax return even if their parents got a third stimulus payment for the child last year.

 

The IRS says: "No longer a dependent: Individuals who were claimed or could be claimed as a dependent on someone else’s tax return for 2019 or 2020 may now be eligible if they can’t be claimed as a dependent on someone else’s tax return for 2021."

 

See: Q C2. Not Eligible for Third Economic Impact Payments: If I wasn’t eligible for a third Economic Impact Payment, am I not eligible to claim the 2021 Recovery Rebate Credit?  (added January 13, 2022)

 

The parents don’t have to pay the money back.