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stimulus payments

Tanyataxgirl
Level 2

I have a client who resides with his girlfriend. The last two years the mom claimed all the kids, but she did not work or collect unemployment this year. The male client will be filing head of household this year with the kids. The recovery rebate calculates a credit for the kids , but we know they received it through the mom. 

How do I correct this?

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7 Replies 7
BobKamman
Level 15

Did the kids receive a check?  I thought all of the EIP's were sent to the adult taxpayers.

Take two Valium and don't lose any sleep over it.  

Tanyataxgirl
Level 2

I think two Valium would kill me.....

The mom already got the credit because she filed with them in 2018 and 2019.

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qbteachmt
Level 15

"how do prevent it from calculating the kids in the credit?"

Mom got the projected amount as an Advance. Congress didn't provide for what happens when their concept was wrong.

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qbteachmt
Level 15

This is hard to follow. Is the Girlfriend also the Mom in your review? Whose kids are these, and did they live in this household or with their Mom who is not This Girlfriend? You didn't state that he lives with his Kids and the mother of His Kids. The Mom claimed all the kids, but are those Her kids? Or, are some of them His, separately? Is there a different Mom out there for some of these kids?

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Tanyataxgirl
Level 2

The client and his girlfriend live together, the kids belong to both the client and the clients girlfriend. They all reside together. Normally the mom (clients gf) claims them, but in 2020 , she didnt work or collect unemployment. because she claimed them in 2019 and 2018, she received stimulus for the kids already.  Because he is claiming them this year, the recovery credit wants to calculate for the kids, giving him a credit for them, how do prevent it from calculating the kids in the credit?

I hope this cleared up what I'm asking. 

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DanC
Level 1

My understanding of the CARES Act was that tax year 2020 is the governing tax year.

If there was an overpayment to the mother based on her 2018 or 2019 tax filing that was used to determine the initial refunds she get to keep the payment and no adjustment or payback by her is required.  For 2020 if the father now qualifies to claim the children, he is entitled to the credits.   Perhaps you really need to check Due Diligence requirements and verify that the mother qualified to claim HOH status for the prior years.

BobKamman
Level 15

@DanC  "Perhaps you really need to check Due Diligence requirements and verify that the mother qualified to claim HOH status for the prior years."

Where does it say she claimed HoH in prior years?

 

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