Our daughter married Dec 2020. She filed sep and as dep (on us) and reported marriage (his info). Her husband not getting his stimulus now. Is there any causation there? Why?

[Opus 17]

I don’t mean to be difficult, but nothing you said makes any sense. If your daughter was legally married as of December 31, 2020, she must file as married. She can’t file as single. She could file as married filing separately, or married filing jointly. If filing jointly, she would file one tax return with her spouse that reports all their combined income and deductions on one return. She can’t be your dependent if she filed a joint return with her spouse.

If she filed as married filing separately, she would be required to provide her spouse’s name and Social Security number, But no other financial information.  She would report only her income and deductions. If she files separately, she is able to check the box that says “yes, I can be claimed as a dependent by someone else“, and you could claim her as a dependent if she meets the qualifications.

So first we need to clarify what actually was filed. Did she file separately, and did she answer “yes“ that she can be claimed as a dependent, and did you claim her as a dependent? Or did she file jointly? If she filed jointly, did you try to claim her as a dependent anyway?

in the case where she filed a separate return and checked the box for “yes, I can be claimed as a dependent“ then she is not eligible for the round 1 or round 2 stimulus payments or recovery rebate on her tax return. Someone who is a dependent can’t get a stimulus payment.  She will also not receive the $1400 round 3 stimulus payment, because the IRS is only making those stimulus payments based on 2020 tax returns. However, if she filed a joint return with her spouse in 2021, she would be eligible for a $1400 rebate if she did not receive the stimulus.  (This can be confusing. There is a $1400 per person tax rebate on the 2021 tax return. The IRS was instructed in the law to make advanced payments if it could, based on 2020 information. So it’s the same money, but paid in two different ways. If she doesn’t get the $1400 advance payment because she was a dependent, she would be eligible for the $1400 rebate when she files her next tax return.)

Her spouse would not receive any stimulus payment for her unless they filed a joint return.

[kenjr1]

Thanks for responding.

By single, I meant married filing separately. Sorry for the misuse of terminology there.

Yes she filed that way, provided husband's name and SSN as required. We claimed her as a dependent on our return as she lived with us all year until she was married.

We're not worried about her stimulus payment, she shouldn't get one. That is understood.

Her husband is wondering where his stimulus payment is, and thinks/was told by someone else it is because of her filing as married and that she provided his name/SSN that he isn't receiving one. 

[Opus 17]

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@kenjr1 wrote:

Her husband is wondering where his stimulus payment is, and thinks/was told by someone else it is because of her filing as married and that she provided his name/SSN that he isn't receiving one. 

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We need to know what you mean by the husband's stimulus.

• There was round 1, which was paid Spring and Summer of 2020, that's $1200 per adult and $500 per child dependent under age 17.
• There was round 2, which was paid in December 2020 through February 2021, but is considered a 2020 payment because that's when it was authorized.  That was $600 per adult and $600 per child dependent under age 17.
• Then there was the Recovery Rebate on the 2020 tax return.  This is where a person could claim the round 1 and round 2 payments if they did not already receive them.  This would not result in a separate check, but increased the person's tax refund.  And, if a person claimed the recovery rebate, but the IRS records say the person got the stimulus payment, the IRS will remove the rebate.  If the taxpayer never got a stimulus, but the IRS thinks they sent one, the taxpayer has to trace the missing payment, they can't get it on their tax return.
• Then there was the round 3 stimulus payment of $1400 per person including dependents.  That is technically a 2021 tax credit, but was paid in advance starting in March or April 2021, using information from 2020 or 2019 tax returns.
• Then finally, there will be a recovery rebate of $1400 on the 2021 tax return for anyone who did not get a round 3 stimulus.  This would include your daughter, as well as any child dependents born in 2021.

What payment is the spouse missing?

[kenjr1]

I believe he's referring to the third round of stimulus.

I've since discovered that he filed Single, while my daughter filed as Married filing Separately. I'm guessing that discrepancy set off a red flag and may have halted any stimulus payments that may be coming his way. I believe a 1040X is in someone's future.  Thanks.

[Opus 17]

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@kenjr1 wrote:

I believe he's referring to the third round of stimulus.

I've since discovered that he filed Single, while my daughter filed as Married filing Separately. I'm guessing that discrepancy set off a red flag and may have halted any stimulus payments that may be coming his way. I believe a 1040X is in someone's future.  Thanks.

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 While the return certainly needs to be amended, it won't result in payment at this point--it's too late, and the IRS has moved on to other problems.  He will be able to claim the $1400 as a rebate on his 2021 tax return.  Presumably they will file a joint return, which will include a rebate for both of them ($2800).

[Hal_Al]

Changing subjects: although you were, most likely, allowed to claim your daughter, as a dependent; doing so was optional (on her part, not yours).  It may have been better to forego claiming her, to allow the newly weds to file jointly, and both claim their stimuluses.  The only way to be sure is prepare returns both ways and compare. It's still possible for everybody to file amended returns, to go the other way. 

For more discussion, on this subject (not including stimulus), see 

https://ttlc.intuit.com/questions/2938663-can-i-claim-my-daughter-who-got-married-on-december-19th-2...

If she was a student, she can claim the education credit, on her joint return, even if you paid the tuition.