qbteachmt
Level 15

"My clients got their own rebates. Not for the children."

They got Money. That isn't the same thing.

Perhaps it would help to review what is really happening:

The funds were paid out as Advanced payment against a projection. The projection used 2018 or 2019 tax returns. But 2020 is the Actuals. You use the 2020 return to reconcile what a person is entitled to, against what they got.

If the person is not a dependent in 2020, then they would be entitled to the payment/credit individually. That doesn't mean "not being claimed." It means "no longer qualifies as a dependent." Your clients have new dependents. Only 2020 Tax Filing matters.


You might want to bookmark these links and read the IRS guidance.


Interactive wizards portal for determining dependency:

https://www.irs.gov/help/ita

And:

https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-a-eip-eligibility

https://www.irs.gov/coronavirus/second-eip-faqs#Eligibility

One for each EIP.

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