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Stimulus credit and rebate

user168033
Level 2

Can a taxpayer who was a dependent on their parent's return for 2019 get a rebate credit on their 2020 return and if not why isn't there a question on the worksheet that would disqualify the rebate?

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qbteachmt
Level 15

"and if not why isn't there a question on the worksheet that would disqualify the rebate?"

Because you need to enter the data properly and know what applies.

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. That doesn't mean "not being claimed." It means "no longer qualifies as a dependent."


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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"Level Up" is a gaming function, not a real life function.

View solution in original post

10 Replies 10
Just-Lisa-Now-
Level 15
Level 15

Do they still qualify as a dependent of their parents in 2020?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
user168033
Level 2

No

 

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IRonMaN
Level 15

That's odd that nobody else has asked that question yet this year.


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user168033
Level 2
send me two
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christijoguhn
Level 3

So.. essentially the stimulus can be paid out twice for one kid?  

For instance- once for the parent who claimed them in 2019,   and then again for the opposite parent who gets to claim them in 2020? 

 

IRonMaN
Level 15

Yup


ACME trench digging shovels on sale this month
qbteachmt
Level 15

"and if not why isn't there a question on the worksheet that would disqualify the rebate?"

Because you need to enter the data properly and know what applies.

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. That doesn't mean "not being claimed." It means "no longer qualifies as a dependent."


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.

*******************************
"Level Up" is a gaming function, not a real life function.

View solution in original post

LPTaxServices
Level 2

So if a 23 year old that lives on own and supports themselves while going to school, if the parents got the EIP I & II, they will not qualify for the EIP payments?

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LPTaxServices
Level 2

So if a 23 year old that lives on own and supports themselves while going to school, if the parents got the EIP I & II, they will not qualify for the EIP payments?

Scenario: Person is working and going to school. Parents do not provide any support for the 23 year old. The box for claimed by any one else is checked no. School is paid by the military and student. Was a dependent in 2019 as they did not work. Why is the return now showing as changed and removing the EIP payments?

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qbteachmt
Level 15

"if the parents got the EIP I & II, they will not qualify for the EIP payments?"

Nope. Did you go to the IRS links and read the articles there, and work through the dependency wizard?

"Was a dependent in 2019 as they did not work"

First, 2019 is Moot. Second, worked or not, has nothing to do with Dependency. That is why you should use the IRS interactive wizard for dependency and even the dependent worksheet would be helpful.

"Why is the return now showing as changed and removing the EIP payments?"

That's a different issue entirely. Read this announcement:

https://proconnect.intuit.com/community/proseries-tax-news-updates/discussion/proseries-2020-produce...

 

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"Level Up" is a gaming function, not a real life function.