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Recovery Rebate

RinkyDink
Level 1

TAxpayers had AGI greater than 150,000 for 2018 and did not receive Stimulus Check 1.  Their 2019 AGI was within limits and qualified for the 2nd Stimulus Check.  Can taxpayers claim the amount for Stimulus 1 money in the 2020 Recovery rebate?  The 2020 AGi was under the $150,000 limit.

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2 Replies 2
TAXOH
Level 11
Level 11

Yes.

qbteachmt
Level 15

2018 and 2019 have nothing to do with anything, now.

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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