Third stimulus payment and dependent status change

[dava13]

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?

[rjs · Accepted solution]

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.

[dava13]

This is exactly what I needed. Thanks!

[BobBQ2]

Thank you!

That was the exact same situation we encountered with our daughter, and I didn't know how to answer the TurboTax question.  

[Comosmom98]

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]

@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.

[Comosmom98]

yea, that's what I was thinking.... IRS is going to be out alot of money on that one! Thanks for the assistance. 

[nbk6w19]

Thats exactly what we did we had our child enter that she got zero and we also got zero for her but IRS still did not give her the $1,400 on her 2021 refund and they never gave it to us (her parents) Why did neither one of us get the money? 

[DawnC]

Check your IRS account(s) to see what was sent to you.    Did your daughter answer NO to the ''Can someone else claim you'' question?   The only reason she would not get it is if she already received it, if she is considered a dependent, or if her AGI was too high.    @nbk6w19

[nbk6w19]

She answered  YES for her 2020 return on that question bs I claimed her as a dependent in 2020. And that caused her to not her the $1,400 I assume. But IRS also didn’t send it to me. 

[nbk6w19]

Because* I claimed her in 2020 

[nbk6w19]

When I filed in 2021 I didn’t claim her and turbo tax did not let me claim the $1,400 she didn’t get 

[nbk6w19]

When she filed independent in 2021 turbo tax allowed her to claim the $1,400 and added it to her projected returned but they adjusted her return and subtracted the $1,400 from her return with no notice to me or her. I confirmed that neither one of us got the money at any point. 

[nbk6w19]

Turbo tax had cost me over 7k due to glitches and software errors and IRS is extremely difficult to contact and I have tax amendments over 1 years pending to fix turbo tax errors/glitches. Neither turbo tax nor IRS cares to help or fix their errors. 

[VolvoGirl]

The IRS records show they sent it to her.  

Double check your bank statements and Check your IRS account (both accounts if married)

Your Online Account | Internal Revenue Service

If the IRS thinks they sent it to you but you didn't get it request a trace for a missing third Stimulus payment

https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-j-p...