Third stimulus payment and dependent status change

Forum|Forum|4 years ago
January 30, 2022
2 replies
47 views

My daughter, a full-time grad student who lives at home, turned 24 in late 2021 so I can no longer claim her as a dependent. However, the third stimulus payment (paid to me) was $2800, based on her 2020 status as my dependent.

1. Since I received the money, should I put the full $2800 on my 2021 tax filing? That is the amount on my letter 6475.

2. What does my daughter put on her 2021 tax filing? She did not receive any funds directly, nor did she receive a letter 6475. If we input 0, Turbo Tax adds $1400 to her Federal refund.

3. Do we each enter $1400 since both of our filing statuses changed to single and she is no longer a dependent?

Best answer by rjs

1. Yes. You enter the amount that you actually received.

2. She enters the amount that she actually received, which is zero. She is entitled to the $1,400 Recovery Rebate Credit.

3. No. You each enter the amount that you actually received, without regard to your filing status or any other considerations.

You will not get a Recovery Rebate Credit on your tax return. You get to keep the $1,400 advance stimulus payment that you got for your daughter, and she gets the $1,400 credit on her 2021 tax return. That's the way it works.

rjs

Answer

Level 15

1. Yes. You enter the amount that you actually received.

2. She enters the amount that she actually received, which is zero. She is entitled to the $1,400 Recovery Rebate Credit.

3. No. You each enter the amount that you actually received, without regard to your filing status or any other considerations.

dava13Author

Level 2

This is exactly what I needed. Thanks!

Comosmom98

Level 2

I have a similar question....

Mother got 2021 stimulus for 3 children (under 18) based on prior tax return. However, the children actually lived with the grandmother all of 2021. So when doing tax return, do I include in my payment the payment already sent for the children even though grandmother did not receive?

xmasbaby0

Level 15

@Comosmom98 No you do not enter the EIP payment received by the parent on the grandparent's return. Those are two separate returns. The mom does not have to pay it back if they sent it to her last year, but if Grandma is claiming the children on her own 2021 return Grandma gets the recovery rebate credit for claiming her grandchildren. Congress left a big loophole in the tax law that allows it.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**