itonewbie
Level 15

That's not how I'd read it.

Subparagraphs (e)(2) of §6428 and §6428A which deal with the reconciliation of recovery rebates credit for MFS taxpayers against advance refund previously received based on MFJ are identical.  Both state the following [emphasis added]:

JOINT RETURNS .—Except as otherwise provided by the Secretary, in the case of a refund or credit made or allowed under subsection (f) with respect to a joint return, half of such refund or credit shall be treated as having been made or allowed to each individual filing such return.

Paragraph (2) of subsection (f), in turn, refers to the advance refund amount being "the amount that would have been allowed as a credit under this section for such taxable year if this section (other than subsection (e) and this subsection) had applied to such [alternative] taxable year."

If we then look back at subsection (a), which provides for the amount of recovery rebates credit to which an eligible individual may be allowed, we'll see that the only reference to "joint return" is with respect to the $2,400/$1,200 MFJ taxpayers should receive (as oppose to $1,200/$600 for others).  Subparagraph (a)(2) is a separate clause that deals with credit allowable for each qualifying child without regard to filing status.

The logical result (although I could well be over-reading this) is that the MFS spouse claiming the relevant qualifying child(ren) on his/her return should account for the full advance refund amount(s) received with respect to the qualifying child(ren), rather than just 50%, regardless of whether he/she filed MFJ in the alternative taxable year.

I suppose they could have made it clearer with how the law is written and the Treasury Secretary could have promulgated regulations, as authorized under both Code sections, to clarify the application but he didn't.

I do notice, however, §6428A did make some improvements to bridge various gaps that existed in §6428, particularly in relation to mixed-status households, inmates, and payment to an account from which a taxpayer had made a tax payment on or after 1/1/2019 (for those who had not previously authorized direct deposit of refunds).

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