DTNY07
Level 5
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Client had already received $4,200 in the third stimulus payment.  $1,400 each for him, the spouse and their daughter.  Daughter was in college during 2019 and their dependent

Daughter graduated in 2020 and filed on her own for 2020.  So, she received the 1st 2 stimulus checks with the return.  But now she also was sent the extra $1,400

So, one person received it twice.  I googled and one article says to pay it back.  it was from a market watch article.  Nothing come up on this message board.  But turbo tax came up and the thread said to keep it, they won't want it back

Which is correct?  This is the first client (I do prepare the daughter's as well) that has had this happen.  I am sure I will have others.

 

Thanks for any help

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BobKamman
Level 15
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Happens all the time.  Keep it.  Worry about something important, like the climate emergency.  

DTNY07
Level 5
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Thanks for the info.  I'm a one CPA firm (my wife is my office manager), so it's not like I've had hundreds of clients with this.  But I know I have had at least 5 others that I filed after the two of theirs, where the child is no longer a dependent as they filed on their own, so I figured  I should ask here.

 

BobKamman
Level 15
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This issue has been around since the CARES Act more than a year ago.  It didn't arise with EIP3; we dealt with it through EIP1 and EIP2.  Whatever you're doing for continuing education, do something else.  

DTNY07
Level 5
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How would someone college age receive a double payment with stimulus 1st payment or stimulus 2nd payment?  Over 17 and claimed by someone else = there wasn't the stimulus payment added for that person.  Which is why then this person can get the 1,200 and 600 by filing their 2020 return and claiming themselves.   

So, I have no clue why you made the comment you just made to me.  My question had nothing to do with anything from last year.

 

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qbteachmt
Level 15
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"How would someone college age receive a double payment with stimulus 1st payment or stimulus 2nd payment? Over 17 and claimed by someone else = there wasn't the stimulus payment added for that person."

Perhaps it would help to review what is really happening for EIP “stimulus” funds: The funds were paid out as Advanced payment against a projection. The first two payouts were projected based on 2018 or 2019 tax returns, but the eligibility is part of tax year 2020 as 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 eligible for consideration as individual filers. That doesn't mean "not being claimed." It means "no longer qualifies as a dependent." You must correctly address whether they Can be Claimed as a dependent on someone else’s tax return.

The third payout which started in Jan 2021, has different eligibility rules as to dependents and this payout is a projection, using 2019 or 2020 tax returns, then reconciled against Actuals on the 2021 tax return.

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

Interactive wizards portal includes one 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

https://www.irs.gov/newsroom/irs-is-issuing-third-round-of-economic-impact-payments

One for each of the three EIP “stimulus” payments.

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DTNY07
Level 5
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I think that I should have written my original information better.  

both returns were filed and accepted over a month ago.  So I was surprised that they then received a $1,400 payment on their own based on 2020.  And a  $1,400 payment was included as part of the  return from 2019 where she was claimed as a dependent by her parents 

I did say that she finished college and started working.  So she  couldn't be claimed by her parents.  Wasn't a can you be claimed by someone else scenario

Thanks for the information.  I have my answer

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qbteachmt
Level 15
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"Nothing come up on this message board."

Really? Because there are a lot here, but the Search Function doesn't work well.

Bob's been documenting some, including the people who get SSI or SSDI, so they got funds directly as well as through being claimed on a tax return.

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DTNY07
Level 5
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The SSI stuff I know about.  But thanks for the information above.  

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